ICAI is working on a crypto research paper

The Institute of Chartered Accountants of India (ICAI) announced Tuesday that it is working on a research paper to advise its members on cryptocurrency accounting and auditing standards

According to the premier professional accounting institute of India, the paper will clarify the tax consequences, valuation, and auditing of cryptocurrency and other virtual digital assets (VDAs) and help its members to understand this new sector better. 

"This is a complex topic and we are seized of the matter," ICAI president Debashis Mitra said talking about crypto.

The president of the institute also clarified that the decision to work on this research paper is a result of several requests by the members of ICAI who were confused with this new asset class. He also informed that the paper would be prepared and released in April.

"Auditing crypto is complex, given the nature of its transaction," Mitra said. "So, even when the taxation part is somewhat clear, auditing it is tricky. That is why we felt the need to work on the paper on it which will bring better clarity on the matter."

It is noteworthy to mention that the Union Budget 2022-23 has proposed a 30 per cent flat income tax on crypto assets from April 1. Moreover, a 1 per cent TDS has also been introduced. And during recent proceedings at the Parliament, Pankaj Chaudhary, Minister of State, Ministry of Finance clarified that there would be no set off or deductions when it comes to taxation of cryptocurrencies.