Virtual Digital Assets: VDAs to attract 1% TDS from today; know what CBDT says about new norms
A one per cent tax deducted at source (TDS) will be applicable on the transfer of Virtual Digital Assets (VDA), starting Friday, July 1, 2022.
A one per cent tax deducted at source (TDS) will be applicable on the transfer of Virtual Digital Assets (VDA), starting Friday, July 1, 2022. The guidelines have been issued by the Finance Department in time and are effective from today.
Now, as per the notification, a quarterly statement will have to be filed in Form 26QB by the exchanges. The notification of the Department of Revenue says that any token which is a VDA (Virtual Digital Asset) will be considered a Non-Fungible Token (NFT).
Issuing a set of clarifications the Central Government specified a token that qualifies to be a virtual digital asset as a non-fungible token within the meaning of sub-clause (a) of clause (47A) of section 2 of the Act but shall not include a nonfungible token whose transfer results in the transfer of ownership of the underlying tangible asset and the transfer of ownership of such underlying tangible asset is legally enforceable.
However, these are not virtual digital assets as stated by the central board of direct taxes (CBDT) of the Ministry of Finance-
(i) Gift card or vouchers, being a record that may be used to obtain goods or services or a discount on goods or services;
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(ii) Mileage points, reward points or loyalty card, being a record given without direct monetary consideration under an award, reward, benefit, loyalty, incentive, rebate or promotional program that may
be used or redeemed only to obtain goods or services or a discount on goods or services;
(iii) Subscription to websites or platforms or application
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