This one-of-a-kind book provides a complete analysis (from an Income-tax & GST perspective) of the new scheme of taxation of Virtual Digital Assets (VDAs), which includes Cryptocurrencies and Non-fungible Tokens (NFTs).
This book helps the reader to understand the following:
- Basic Concepts & Ecosystem of VDAs
- Difference between the New & the Old Scheme of taxation of VDAs
- GST Implications on VDAs
- Current Tax Challenges
This book also explains the essential taxonomy of the following:
- Crypto Assets
- Blockchain Technology
- Distributed Ledger Technology
- Mining, etc.
The Present Publication is the First Edition, authored by Taxmann’s Editorial Board. This book is amended by the Finance Act 2022 and addresses the following critical issues w.r.t. to VDAs:
- All foreign currencies have been kept out of the meaning of VDA. Why Bitcoin is a VDA even if El Salvador has adopted Bitcoin as its official currency?
- How to determine the situs of VDA for taxability in the hands of a non-resident?
- Head in which the income from transfer of VDA should be taxed?
- How should the income from the lending of cryptocurrencies be taxed?
- Whether mining of cryptocurrencies is a taxable event?
- How to determine the cost of acquisition of mined cryptocurrencies?
- Tax implications if VDAs are lost or stolen
- How to determine the fair market value of VDAs?
- Whether Section 87A rebate and maximum exemption limit allowed from income from VDAs?
- Treatment of losses incurred from transfer of VDAs on or before 31-03-2022
- How to compute the income from the transfer of VDA before 01-04-2022?
- How to compute the TDS under Section 194S in case of an exchange of one VDA for another VDA?
- Whether VDA is money, legal tender, or security?
- Whether VDA is a good or service?
- Whether services by foreign crypto exchanges are OIDAR services?
The detailed contents of the book are as follows:
- Concept of Virtual Digital Asset
- Meaning of Virtual Digital Asset
- Scheme of Taxation of Virtual Digital Asset on or after 1-4-2022
- Transfer of Virtual Digital Asset without or for inadequate consideration on or after 1-4-2022
- Deduction of tax at source under Section 194S
- Scheme of taxation of Virtual Digital Asset before 1-4-2022
- Taxability of cryptocurrency under the GST law