Taxmann
Published: 2022-04-23
Total Pages: 18
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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 • NFTs • Blockchain Technology • Distributed Ledger Technology • Airdrop • 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 foranother 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