Law, Procedure & Taxation of Virtual Digital Asset (Cryptocurrencies)

Book Details

Chapter
1. Introduction	1
2. Key Developments around the World	8
3. India's Journey of Cryptocurrency - From Barter to Bitcoin	15
4. Laws Governing Virtual Digital Assets	23
5. What is Virtual Digital Assets	35
6. “Virtual Digital Asset� means [Section 2(47A)]	42
7. Types of Virtual Digital Asset	46
8. Types of Cryptocurrency	50
9. How Does Cryptocurrency Work?	55
10. Before Investing in a Cryptocurrency	57
11. Blockchain Technology	59
12. Distributed Ledger Technology	67
13. Centralized Ledger	72
14. Decentralized Ledger	75
15. Non-Fungible Token (NFT)	78
16. Proof of Work vs Proof of Stake	86
17. Mining of Cryptocurrency	95
18. Cryptocurrency Wallet	99
19. Cryptojacking	104
20. How to Buy Cryptocurrency	107
21. How to Sale Cryptocurrency	112
22. Taxation Position of Virtual Digital Asset in India prior to 01.04.2022	116
23. Head of Income under which Virtual Digital Assets Taxable	118
24. Taxation of Crypto Airdrops	122
25. Taxability of Virtual Digital Assets received as Gifts in the hands of recipient [Section 56(2)(x)]	125
26. Determination of Fair Market Value of Virtual Digital Assets	129
27. Taxation of Non-Fungible Token (NFT) [Clause (a) of the Explanation to section 2(47A)]	130
28. Tax on Income from Virtual Digital Assets [Section 115BBH]	137
29. Treatment for Loss from transfer of Virtual Digital Assets [Section 115BBH(2)(b)]	141
30. What is ‘Transfer’ in relation to Virtual Digital Asset [Section 115BBH(3)]	145
31. Computation of Income from Transfer from Virtual Digital Assets	147
32. Taxability of Creation of Cryptocurrencies from an International Perspective	152
33. TDS on Payment of transfer of Virtual Digital Asset (Cryptocurrencies) [Section 194-S]	162
34. Obligation to Furnish Information on Transaction of Crypto-Asset [Section 285BAA]	192
35. Reporting gains from crypto/NFTs and other Virtual Digital Assets in Income Tax Return	195
36. Disclosure of Crypto Assets in Schedule of Assets and Liabilities	200
37. Goods & Services Tax (GST) on Virtual Digital Assets	204
38. Virtual Digital Assets (‘VDAs’) come under the ambit of Prevention of Money Laundering Act, 2002 (PMLA)	207
39. Applicability of Foreign Exchange Laws of India for Trading in Virtual Currencies	219
40. Virtual Digital Assets (VDA)/ Crypto-Assets Questionnaire	222
41. Cryptocurrency : Legal or Illegal	224
42. Case Laws on Virtual Digital Assets/Cryptocurrency	264
43. Frequently Used : Important Terms	269
44. Frequently Asked Questions (FAQs)	279

About the Author

Ram Dutt Sharma

Ram Dutt Sharma was born on 27th June, 1958 in Narnaul, Haryana. He got his post-graduation from M.D. University, Rohtak in 1980. He joined the Income-tax Department in the year 1983 and retired as Income Tax Officer on 30.06.2018. He worked at various stations of North-West Region of Income-tax Department. He has wide experience of all wings of Income-tax Department such as Assessment Unit, Special Range, TDS Wing, Investigation Wing, etc. He has been Contributing articles and addressing on topics relating to Income Tax at NADT Regional Campus, Chandigarh & Bhopal. He has also addressed number of seminars organized by the Income-tax Department, Chartered Accountants, Advocates and various Trade Associations.

He is recipient of first-ever Finance Minister's Award 2017, the Income Tax Departments highest honour for sustained devotion, commitment to duty & promoting excellence in the field of Direct Taxation at National Level. The Hon'ble Union Finance Minister, Shri ArunJaitley conferred this Finance Ministers Award for Excellence for his meritorious services at VigyanBhawan, New Delhi on 24.07.2017.

Awarded by Hon'ble Member (Revenue& TPS), CBT, Special Secretary to the Government of India Certificate of Appreciation for his contribution recognized and included in the chapter Miscellaneous Orders in Let Us Share A compilation of Best Practices & Orders Vol. VIII released on 31stOctober, 2016.

View other books from Enterprise Information Systems and Strategic Management