Record-keeping instruction to a client holding virtual digital assets
A client who made ₹8,00,000 on one coin and lost ₹6,50,000 on two others has an economic gain of ₹1,80,000 and a tax bill of ₹2,49,600, an effective rate of 138.7%, because s.115BBH allows no set-off, no carry forward and no deduction for anything except cost of acquisition.
- 3 pages
- 10
- Word and PDF
- 13 September 2026
What it covers
- 1Record-keeping instruction to a client holding virtual digital assetson the firm's letterhead
Read the opening
The first part of the format, as it downloads. Blanks are highlighted.
On the firm's letterhead
Date: [Date of the letter]
To,
[Name of the client]
[Client's address]
PAN [AAAAA0000A]
Subject: Virtual digital assets — the records you must keep, and the standing position we will take on your return
You have informed us that you hold or deal in virtual digital assets. This letter sets out how they are taxed, what we will need from you each year, and what you must do now. Please read paragraph 2 before you make another transaction.
1. How they are taxed