New Student Offer - Use Code HELLO

Register Now

Centre Mulling to Lift the Curtain on Taxing NFT as a Virtual Digital Asset

Published on May 30, 2022
Current Context: The Central Board of Direct Taxes (CBDT) is preparing guidelines, on what will be covered within the ambit of virtual digital assets (VDA).
Centre Mulling to Lift the Curtain on Taxing NFT as a Virtual Digital Asset
  • 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
ebook store

About us

ramandeep singh

Ramandeep Singh, your guide to banking and insurance exams. With 14 years of experience and 5000+ selections, Ramandeep understands the path to success, having transitioned himself from Dena Bank and SBI. He's passionate about helping you achieve your banking and insurance dreams.

  • Follow me:
Close Menu
Close Menu