Have crypto earnings? New Income Tax Bill will see it as 'undisclosed income' during searches

The new Income Tax Bill, set to be tabled on February 13, categorises virtual digital assets, commonly known as cryptocurrencies, as ‘undisclosed income’ during searches, alongside existing categories like gold and bullion, according to a report The new Income Tax Bill, set to be tabled on February 13, categorises virtual digital assets, commonly known as cryptocurrencies, as ‘undisclosed income’ during searches, alongside existing categories like gold and bullion, according to a report. Under the new bill, ‘undisclosed income’ encompasses ‘money, bullion, jewellery, virtual digital assets, or other valuable articles’ as well as expenditures and income related to any entry or transaction that partially or wholly represents undisclosed income. Virtual Digital Assets encompass any information, code, number, or token that is neither Indian nor foreign currency, created through cryptographic methods or otherwise, and can be transferred, stored, or traded electronically. The new bill, as expected, has not made any changes to taxing cryptocurrencies or virtual digital assets, as it will continue to attract a 30 per cent tax on any income from the transfer of such assets without any deductions and exemptions.