- As we all know that the government in the Union Budget for 2022-23 introduced new provisions aimed at taxing and tracking virtual digital assets (VDAs). introduced a flat 30 percent tax on all gains from the sale of VDAs and a 1 percent TDS on all cryptocurrency transactions.
- CBDT will define non-fungible tokens (NFTs) and whether they fall within the purview of VDA or not.
- Apart from that, they will also provide clarity on the credit card or loyalty points, which are awarded or redeemed digitally and have underlying value or not.
- A 1% TDS is introduced to track cryptocurrency transactions will be effective from July 1 and the government will soon release the rules for their calculation.
- But still, there were many issues regarding the clarity of the definition of virtual assets and their implementation. so the tax body is working out before the deadline.
- An NFT is a digital asset that exists on a blockchain, allowing anyone to verify its authenticity and ownership.
Question:
Q.1 NFT is considered to be as________from the given below.a. Legal Tender
b. Securities
c. Digital Asset
d. Bonds
