The Indian tax authority has proposed new changes to the filing of income tax returns that could have a significant impact on those who own virtual digital assets (VDA) or cryptocurrencies, as well as those who invest in decentralised autonomous organisations (DAO). The Central Board of Direct Taxes (CBDT) has proposed a new common tax return (ITR) that largely consolidates existing income tax returns in order to make the process more efficient. However, the proposal also asks Indians living abroad about any business connections they may have in India, as well as whether that entity has a significant economic presence (SEP) in India – particularly businesses from which they derive income. This could have an impact on any cryptocurrency exchanges that are not based in India but have Indian traders.
