Overview

• The third phase of the NUDGE campaign targets assessment years 2023-24 and 2024-25 for potential underreporting of cryptocurrency income.
• Thousands of taxpayers have received emails urging them to review and update any undeclared or misdeclared virtual digital asset income in their ITRs.
• CBDT officials are cross-verifying ITR submissions against TDS data from Virtual Asset Service Providers to identify discrepancies and select cases for scrutiny.
• Section 115BBH mandates a flat 30% tax on VDA gains with no deductions beyond acquisition costs and prohibits offsetting losses against other income.
• Data analytics indicate many filers omitted Schedule VDA or claimed cost indexation to lower their tax liability, prompting the current compliance drive.