Institute of Chartered Accountants of India (ICAI) is working on a research paper on cryptocurrencies covering various aspects including the meaning of taxation. ICAI President Debashish Mitra said on 22nd March, 2022, that it is expected to be ready in a month and a half, after the completion of the research paper, it will be handed over to the government.
“Auditing crypto is complex, given the nature of its transaction, 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,” Mitra added.
The report will cover taxation implications, valuation and auditing of crypto and other virtual digital assets (VDAs), guiding its members on accounting and auditing standards for cryptocurrency assets, the institute said.
Further, the Securities and Exchange Board of India (Sebi), has asked ICAI to prepare a Social Audit Standard for NGOs and not-for-profit organisations, Mitra said. This will cover the impact reporting and specific Social Audit Standards with respect to sub-themes of social impact such as poverty and nutrition, covering aspects such as scope, engagement acceptance, basic principles, audit procedures and documentation. ICAI is working on it and is expected to prepare a draft and submit it to Sebi by the end of this year.