Quick Summary
India has taken a proactive stance in reforming its tax laws to meet the challenges posed by the rapidly expanding digital economy, said Varunesh Mishra, Joint Commissioner of Income Tax in the Central Board of Direct Taxes (CBDT). Speaking at the International Tax Conference 2025 in New Delhi, Mish
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)
3 Months PLAN
999
(Excl. of GST ₹179)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
The SEP concept, introduced in 2018, aims to tax profits of foreign digital entities based on their economic activity and user engagement within India, even without a physical office.
India introduced the Equalization Levy as an interim measure for taxing cross-border digital transactions, while working towards alignment with global standards like OECD's Pillar One and Pillar Two.
Key domestic reforms include Tax Deducted at Source (TDS) on e-commerce transactions (Section 194-O) and a 30% tax on income from Virtual Digital Assets (VDAs) like cryptocurrencies and NFTs, with a 1% TDS on payments.
India became one of the first major economies to comprehensively regulate digital asset taxation in 2022 with the introduction of taxes on Virtual Digital Assets (VDAs).
A key challenge remains profit attribution for multinational digital companies operating across multiple jurisdictions, requiring a balance between encouraging innovation and ensuring fairness.
CAclubindia
