Key Points
Budget 2022 introduced a 'flat rate' for taxing income earned from the sale of Virtual Digital Assets (VDAs) like cryptocurrencies, non-fungible tokens (NFTs) and any other VDAs notified by the government..
New tax rules for incomes from VDAs..
Income from VDA taxed as capital gains: On the other hand, if the VDAs are held as capital assets (just like equity shares, mutual funds etc.), the income generated will be taxed under the head "Capital Gains.".
However, if an individual assessee disclosed income from the sale of VDA as business income, interest under Section 234C shall be levied if the assessee has the liability to pay the advance tax but he fails to pay the same or the amount paid in each instalment is less than the amount he should have paid in such instalments...
Schedule VDA requires details such as the acquisition date, sale date, category of income for taxation (capital gains or business income), acquisition cost , and money earned from selling VDA...
