Gift Cards, Reward Points Excluded From Crypto Tax

Last updated: 02 July 2022

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The Central Board of Direct Taxes has issued a notification clarifying which virtual digital assets are excluded from crypto tax. This includes gift cards or vouchers, mileage points, reward points, loyalty cards, and subscriptions to websites or platforms. These exclusions apply from the date of the notification's publication.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 30th June, 2022
Notification No. 74/2022 - Income-tax

S.O. 2958(E). - In exercise of the powers conferred by proviso to clause (47A) of section 2 of the
Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies following virtual digital assets which shall be excluded from the definition of virtual digital asset:

(i) Gift card or vouchers, being a record that may be used to obtain goods or services or a discount on goods or services;

(ii) Mileage points, reward points or loyalty card, being a record given without direct monetary
consideration under an award, reward, benefit, loyalty, incentive, rebate or promotional program that may be used or redeemed only to obtain goods or services or a discount on goods or services;

(iii) Subscription to websites or platforms or application.

2. This notification shall come into force from the date of publication in the Official Gazette.

[Notification No. 74/2022/F. No. 370142/29/2022-TPL (Part-I)]
ANKIT JAIN, Under Secy.

FAQ :

Gift cards or vouchers, mileage points, reward points, loyalty cards, and subscriptions to websites or platforms are excluded.

No, gift cards or vouchers, which can be used to obtain goods, services, or discounts, are now excluded from the definition of virtual digital assets for tax purposes.

Mileage points, reward points, or loyalty cards received without direct monetary consideration under award or loyalty programs are also excluded.

Yes, subscriptions to websites, platforms, or applications are also notified as being excluded from the definition of virtual digital assets.

This notification comes into force from the date of its publication in the Official Gazette.

Notification No : 74/2022 - Income-tax
Source : https://incometaxindia.gov.in/communications/notification/notification-no-74-2022.pdf

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