Taxation of Virtual Digital Assets

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 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