Taxation of Virtual Digital Assets

CA Keyur Somani | Last updated: 09 February 2022

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The Finance Bill 2022 has introduced clarity on the taxation of Virtual Digital Assets (VDAs), including cryptocurrencies. VDAs are now defined to include information on blockchain, NFTs, and other assets designated by the government, excluding Indian and foreign currency. Income from the transfer of VDAs is taxed at a flat rate of 30% under 'income from other sources', with only the acquisition cost allowed as a deduction. Other expenses, allowances, or business losses cannot be set off against VDA income, though intra-head set-offs for VDA gains and losses are permitted.

Time is still the best answer And this saying once again turned out to be true as The Finance Bill, 2022 brings clarity on much talked about Crypto - Crypto and Crypto A lot of speculation was made by Gyani, Agyani and by each and every one about the crypto, some said crypto will be taxed at t

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1 Year PLAN

1999

(Excl. of GST ₹359)

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2 Years PLAN

3499

(Excl. of GST ₹629)

3 Months PLAN

999

(Excl. of GST ₹179)

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About the Author

CA Keyur Somani

Chartered Accountant

Hi, Im Chartered Accountant and Bachelor of Commerce with passion for Finance. I have wealth of experience in statutory, internal and special audits and have audited entities ranging from listed companies, government entities to LLPs. I am proficient in tax laws such as Income Tax, GST and Customs and have in-dep ... Read more

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