Tokenized stocks taxed at 30% in India. Schedule VDA filing required in ITR by July 31. Here is exactly what you owe and how to calculate and file it.
India taxes all Virtual Digital Assets (crypto, tokens, including tokenized stocks) at a flat 30% rate on gains. Example: Buy SPCX for ₹50,000 → Sell for ₹75,000 → Gain = ₹25,000. Tax = 30% × ₹25,000 = ₹7,500. Net profit = ₹17,500. No deductions allowed (unlike regular capital gains). This is the worst-case tax treatment in Indian finance.
1% Tax Deducted at Source (TDS) on every transaction over ₹50,000. Exchanges automatically deduct this. Example: Sell ₹100,000 in SPCX → Exchange withholds ₹1,000 TDS. You receive ₹99,000. This TDS is credited against your final 30% tax liability. Effect: On large gains, TDS can substantially reduce your final tax bill.
You MUST file Schedule VDA in your ITR by July 31 of each financial year. Reporting required: Date of each trade, purchase price, sale price, gain/loss. Penalties for non-disclosure: Up to 300% of tax owed (if caught by Income Tax Department). Complete omission of Schedule VDA = assessment notice + penalties. No exception. File it.
1. Download all transaction history from Backpack / your exchange. 2. Calculate total gains by transaction. 3. Use ClearTax Crypto calculator (free) to auto-fill Schedule VDA. 4. Consult CA if you have >₹10L in gains (get professional advice). 5. File ITR before July 31. Procrastination = penalties. Start now.
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