Introduction
Virtual Digital Assets, especially cryptocurrencies & Non – Fungible Tokens (NFTs), have gained tremendous popularity in recent times and the volumes of cryptocurrency trading has increased substantially. To bring clarity on such asset classes, the government has proposed to define virtual assets, provided for taxation rules on such assets, viz., taxes on income arising out of virtual assets, and TDS in the recent Union Budget 2022.
Virtual Digital Assets – Defined
Virtual Digital Assets, especially cryptocurrencies & Non – Fungible Tokens (NFTs), have gained tremendous popularity in recent times and the volumes of cryptocurrency trading has increased substantially. To bring clarity on such asset classes, the government has proposed to define virtual assets, provided for taxation rules on such assets, viz., taxes on income arising out of virtual assets, and TDS in the recent Union Budget 2022.
- Virtual Digital Assets – Defined
- Virtual Digital Assets (VDA) shall include
1. Any information or number or token, generated through cryptographic means or otherwise, providing a digital representation of value exchanged with or without consideration, with the promise or representation of having inherent value or
2. Functions as a store of value or a unit of account including its use in any financial transaction or investment, but not limited to investment scheme; and can be transferred, stored or traded electronically.
3. Also, includes a non – fungible token or any other token of similar nature; and
4.any other digital asset, as the central government may by notification specify it in the official gazette.
Read More: https://www.acquisory.com/ArticleDetails/90/Taxability-of-Virtual-Digital-Assets–An-Overview
