This document discusses taxation on virtual digital assets (VDA) in India. It defines VDA and outlines key tax rules: 1) Income from the transfer of VDA is taxed at 30% with no deductions allowed except for cost of acquisition. Losses cannot be set off against other income or carried forward. 2) Gifting VDAs over 50,000 rupees is taxed at the recipient's normal tax rate, except between relatives. 3) Transactions involving VDAs are subject to a 1% tax deducted at source (TDS) above certain thresholds to be deducted by the transaction settler.