Section 509: obligation to furnish information on crypto-asset transactions

Who must report, and what

Any person being a reporting entity, as may be prescribed, in respect of a crypto-asset, must furnish information on a transaction of such crypto-asset in a statement, for such period, within such time, in such form and manner, and to such income-tax authority, as may be prescribed.

Fixing defects in the statement

If the prescribed income-tax authority considers the statement defective, they may intimate the defect and give an opportunity to rectify it within thirty days (or a further allowed period). If not rectified in time, the Act applies as if the person had furnished inaccurate information.

Notice for non-filing, and correcting later-discovered inaccuracies

If the statement is not furnished within the specified time, the prescribed income-tax authority may serve a notice requiring it within a period not exceeding thirty days from service of the notice.

If a person, having furnished a statement, later discovers any inaccuracy, they must inform the prescribed income-tax authority within ten days and furnish correct information as may be prescribed.

Rule-making powers

The Central Government may, by rules, prescribe the persons to be registered with the prescribed income-tax authority, the nature and manner of maintaining the required information, and the due diligence to be carried out for identifying any crypto-asset user or owner.

Meaning of "crypto-asset"

"Crypto-asset" has the meaning assigned to it in section 2(111)(d) of the Act.

Frequently asked questions