CA. Rohit Porwal
Quick Summary
Taxability of Virtual Digital Assets (VDAs) - Recent order of ITAT Jodhpur Appellant: Raunaq Prakash Jain Respondent: Income Tax Officer, Ward-1, Bhilwara Assessment Year: 2021-22 Tribunal: Income Tax Appellate Tribunal (ITAT), Jodhpur Bench Date of order: 28/11/2024 The case pertains to t
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FAQ :
Yes, according to the ITAT Jodhpur ruling, Virtual Digital Assets (VDAs) can be treated as capital assets, as they represent a form of property right.
If VDAs are held for more than 36 months and treated as capital assets, the gains from their sale can be taxed as long-term capital gains (LTCG).
Yes, the ITAT Jodhpur has ruled that if the proceeds from selling a VDA, treated as a capital asset, are reinvested in a residential property, an exemption under Section 54F can be claimed.
No, the ITAT Jodhpur confirmed that the specific provisions defining VDAs and their taxation regime in the Finance Act 2022 are prospective and apply only from April 1, 2022, onwards. They do not alter the tax treatment for prior periods.
The Assessing Officer (AO) had argued that Bitcoin was not a capital asset and treated gains as income from other sources, denying any capital gains treatment or Section 54F exemption.
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