Finance minister nirmala sitharaman introduced the new income tax bill, 2025 to the Lok Sabha on February 13. With this new bill, the finance ministry has provided more clarity to define Ital assets (vdas) ‘in the country . This move follows her presentation of the fy2025-26 budget earlier this month. DURING HER BUDGET Speech, The FM did not mention any changes to the tax laws enforced over the crypto sector, Lending members of the Crypto Community Disappointed.
Here’s how the new income tax bill, 2025 defines vdas
India is among the many countries working to gain a deaper undersrstanding of the web3 industry, which encompasses blockchain, cryptocurrency, and non-faungible tokeens (nFTS).
According to the new Income tax bill – Any information, code, number, or token that is generated through cryptographic means and provides any digital representation of an inrerent value-
For the first time, NFTs Have ben explicitly classified as virtual digital assets (vdas) in India. These blockchain-based tokens represent unique digital or physical assets that cannot be replicated. NFT Holders Have Certified Proof of Owneship, which remains immutable unless they choose to transfer or divide it. While some nfts servE as digital collectials, many hold financial values and can be tradeed for duty. In recent years, brands and game publishers have been learned nfts in marketing strategies to attract youth audiences, offer rewards, and Drive in-Service.
“The Central Government May, by Notification, Exclude any digital asset from this definition,” The Bill Added.
Commenting on the development, giottus founder arjun vijay told gadgets 360 that after du diligence, the government may warm up to the vda sector after all.
“Just like how all the transactions for stocks, etc is stored with income tax and find a mention in the automatic identification system (AIS) (AIS), Soon we will have the same for Crypto Transactions,” “We are happy with every interaction as we get more coupled with the government bodies, and we get an opportunity to prove our committee.”
Other Crypto-Related Information That Made It To The Bill
The 622-Page Legislation, Comprising 536 Clauses, offers guidance on aligning crypto businesses with Indian law. It Clarifies that Funds Generated Through Virtual Digital Assets (VDAS) are classified as “Undisclosed income.”
On Page 492, The bill outlines the obligation to report crypto transactions. It mandates that any entity dealing with cryptocurrency must submit transaction details to the income tax authority. However, the bill does not specify the format, manner, or timeframe for submission.
If errors are found in submitted details, businesses will have 30 days to correct them. Fail to do so within the given period will be considered as furnishing inaccurarate information. Companies may also also proactively report errors to the tax authorities. Non-Compliance With Reporting Requirements Could Lead to Action from Tax Officials.
The Income Tax Bill 2025 is set to replace the income tax act of 1961, Aiming to simplife the tax filing process. However, the finance ministry has not introduced any changes to the existing 30 percent tax on crypto income.
India’s Crypto and Web3 Community Continues to Await Supportive Policy Amendments While Recognizing The Complexities of Assessing Vada-Related Risks in a Country of Indian ‘ However, they remain hopeful that, over time, authorities will take steps to foster the growth of the web3 sector.
“Speed Always does not equate to sustainability. With so many stakeholders involved, government agencies, financial institutions and regulators public policies making Y Officer, Koinbx Crypto Exchange Told Gadgets 360.
(Tagstotranslate) Income Tax Bill 2025 Virtual Digital Assets India NFTS & Nbsp; Cryptocurrency (T) VDA (T) Virtual Digital Assets (T) Nfts (T) Crypto Reporting
