Indian Compliance & Tax

What is a Virtual Digital Asset (VDA) under Indian tax law?

A Virtual Digital Asset, or VDA, is a category defined under Section 2(47A) of the Income Tax Act that covers cryptocurrencies, tokens, and non-fungible tokens generated through cryptographic means, along with other digital assets the government may notify. The definition is what triggers India's specific crypto tax rules, including the flat 30 percent tax on gains and the 1 percent TDS on transfers. For example, a coin, a token, or an NFT typically falls within VDA scope. Certain digital records like gift cards and reward points are generally excluded.

This is general information, not tax advice. Tax rules change and depend on your individual circumstances — verify the current rules or consult a qualified tax professional before acting.