You may love it or hate it, but you cannot ignore it, such is the nature of Virtual Digital Assets (VDAs).VDAs or virtual assets are described by the government as:
"Any information, code, number, or token (not being Indian currency or foreign currency), generated through cryptographic means or otherwise, by whatever name called,with the promise or representation of having inherent value, or functions as a store of value or a unit of account, including but not limited to investment schemes; and can be transferred, stored or traded electronically." is a VDA, in short, all NFTs, digital currencies, etc. are VDAs
VDAs or virtual Digital Assets include anything from bitcoin Ethereum to things like virtual land all virtual assets of monetary value are VDAs.These have been taxed heavily by the government I say so because of the following reasons
1. A flat rate of 30 percent, independent of the tax bracket. on revenue from VDAs
2. A 1 percent TDS on all crypto transactions
3. Tax by receipt taxpayer as income from other sources for gifts received as VDAs
Now we know 3 reasons to cry lets hear my take on this. I am unlike many happy due to this law as this declares crypto legal removing the unnecessary speculation in the market making me comfortable. Secondly, this step will help people understand about the risks of investing in crypto and regulate service providers some service providers had started campaigns with "Crypto Safe Hai" which is not at all true the volatility in the crypto market is not suitable for everybody a regulation of this space will all this. Also for people investing for the longer term, the 30% tax will not hurt them as much as the crypto market is likely to give asymmetrical returns this decade (my opinion). Last but not least the advantages outweigh the disadvantages a proper regulatory body can help shape the future of crypto unimaginably. This is a very big sector to look out for.
NOTE: According to the CBDT chairman only 1 percent TDS on cryptocurrency trading could fetch over 1000 crore annually for the Government needless to say the money is from 30% However these are just the initial findings from the Budget 2022 presentation. To receive clarity on this, we must wait for the Finance Bill to be passed.