Virtual Digital Asset taxation in india

1. Crypto Currency
Taxation
Finance Bill
2022-23
By Imran C Shaikh

2. Capital Asset as
“Virtual digital asset”
Amendment of Section 2 of I.T. Act
(47A) “Virtual Digital Asset”
1. Indian / Foreign Currency .
2. Fungible.
3. Non – Fungible.
4. Any Stored or Traded electronically.
Note Central Govt. May Exclude any virtual digital asset by Notification .
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3. Income charge under head of
Income from other Source
Amendment of Section 56 of I.T. Act
Define as a property
under 56(d) included under
Explanation to
Clause (vii) “Virtual Digital Asset”
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4. Tax on income from
Virtual Digital Assets.
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Added New Section 115BBH for Virtual Digital Asset
1. Tax at 30%
2. No Deduction other than purchase.
3. No Carried forward Losses for next year.
4. Tax must be paid even Exchange against
other digital currency.

5. TDS On payment of Virtual Digital
Asset.
Added New Section 194S TDS @ 1%
Payments made by
entity
Condition for TDS TDS Rate
Individual / HUF Gross Sales Less than 1 Crore or for
Professional Receipt Less than 50
Lakh
Payment / Value Less than
50 Thousand any mode
NO TDS
Individual / HUF Gross Sales More than 1 Crore or
for
Professional Receipt More than 50
Lakh
Payment / Value More than
50 Thousand any mode
TDS @ 1%
Any other Entity ------ Payment // Value More than
10 Thousand by any mode
TDS @ 1%
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6. Thanking you
By Imran C Shaikh
Mail us
tdsgyani@gmail.com
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The presentation is my personal opinion / understanding has no legal status.
Final Decision will be taxation authority.