{"id":22053,"date":"2022-03-04T00:05:44","date_gmt":"2022-03-03T18:35:44","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=22053"},"modified":"2023-03-12T21:57:27","modified_gmt":"2023-03-12T16:27:27","slug":"digital-currency-different-from-virtual-digital-assets","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/digital-currency-different-from-virtual-digital-assets\/","title":{"rendered":"Digital Currency different from Virtual Digital Assets"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69eaf108c7cb5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69eaf108c7cb5\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/digital-currency-different-from-virtual-digital-assets\/#Digital_Currency_Virtual_Digital_Assets\" title=\"Digital Currency &amp; Virtual Digital Assets\">Digital Currency &amp; Virtual Digital Assets<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/digital-currency-different-from-virtual-digital-assets\/#What_are_means_of_Virtual_Digital_Assets\" title=\"What are means of Virtual Digital Assets?\">What are means of Virtual Digital Assets?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/digital-currency-different-from-virtual-digital-assets\/#What_is_advantages_of_Cryptocurrencies\" title=\"What is advantages\u00a0of\u00a0Cryptocurrencies?\">What is advantages\u00a0of\u00a0Cryptocurrencies?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/digital-currency-different-from-virtual-digital-assets\/#What_is_Disadvantages_of_Cryptocurrencies\" title=\"What is Disadvantages of Cryptocurrencies?\">What is Disadvantages of Cryptocurrencies?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/digital-currency-different-from-virtual-digital-assets\/#What_is_Justification_Behind_Taxation_in_india\" title=\"What is Justification Behind Taxation in india?\">What is Justification Behind Taxation in india?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/digital-currency-different-from-virtual-digital-assets\/#TDS_on_virtual_digital_assets\" title=\"TDS on virtual digital assets.\">TDS on virtual digital assets.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/digital-currency-different-from-virtual-digital-assets\/#Providing_Virtual_Digital_Assets_as_a_Gift\" title=\"Providing Virtual Digital Assets as a Gift\">Providing Virtual Digital Assets as a Gift<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/digital-currency-different-from-virtual-digital-assets\/#Digital_Currency_of_Indias_Central_Bank\" title=\"Digital Currency of India&#8217;s Central Bank\">Digital Currency of India&#8217;s Central Bank<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Digital_Currency_Virtual_Digital_Assets\"><\/span><span style=\"color: #000080;\"><strong>Digital Currency &amp; Virtual Digital Assets<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-22056\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/Taxation-of-Virtual-Digital-Assets-in-2022.jpg\" alt=\"Taxation-of-Virtual-Digital-Assets-in 2022\" width=\"916\" height=\"458\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/Taxation-of-Virtual-Digital-Assets-in-2022.jpg 600w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/Taxation-of-Virtual-Digital-Assets-in-2022-300x150.jpg 300w\" sizes=\"(max-width: 916px) 100vw, 916px\" \/><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_means_of_Virtual_Digital_Assets\"><\/span><span style=\"color: #000080;\"><strong>What are means of <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/carajput.com\/services\/virtual-cfo-finance-services.php\">Virtual<\/a><\/span> Digital Assets?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Finance bill 2022 defined the term \u201cvirtual digital asset\u201d by entering a\u00a0new clause (47A) under the income tax<\/li>\n<li>According to proposed new clause under the definition of a a\u00a0virtual digital asset is proposed to mean any information or code\u00a0or No or token (not being Indian currency or any foreign currency), generated Via cryptographic means.<\/li>\n<\/ul>\n<p>The Cryptocurrency by whatever name called, would be considered a virtual digital asset, taxable in India. if it meets the below conditions:<\/p>\n<ul>\n<li>Cryptocurrency in the form of information, code, numbers, or tokens;<\/li>\n<li>It acts as a digital representation of value;<\/li>\n<li>It&#8217;s generated through cryptographic means or otherwise;<\/li>\n<li>It has some inherent value; and<\/li>\n<li>Cryptocurrency allows for the storage and transfer of its units or tokens.<\/li>\n<\/ul>\n<p>Govt issued digital currencies both foreign as well as Indian have been particularly excluded from the scope of virtual digital assets as per Budget \u00a02022;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_advantages_of_Cryptocurrencies\"><\/span><span style=\"color: #000080;\"><strong>What is advantages\u00a0of\u00a0<span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cryptocurrency-treatment-as-goods-or-services-in-india\/\">Cryptocurrencies<\/a><\/span>?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Few of advantages of Cryptocurrencies are mentions below:<\/p>\n<ul>\n<li>Cryptocurrency investments can create big profits, values have skyrocketed over last last few years.<\/li>\n<li>No involvement of 3rd parties such as banks &amp; financial institutions.<\/li>\n<li>faster money transfers with decentralized systems &amp; Cheaper which do not collapse at a single point of failure.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"What_is_Disadvantages_of_Cryptocurrencies\"><\/span><span style=\"color: #000080;\">What is Disadvantages of Cryptocurrencies?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Few are some disadvantages of Cryptocurrencies are mention below:<\/p>\n<ul>\n<li>Leaves a digital trail which can be deciphered allowing authorities to track financial transactions of individuals.<\/li>\n<li>Cryptocurrencies include high energy consumption for mining activities, price volatility &amp; use in criminal activities.<\/li>\n<\/ul>\n<p>Above provided digital nature, transactions are prone to be hacked.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_Justification_Behind_Taxation_in_india\"><\/span><span style=\"color: #000080;\">What is Justification Behind Taxation in india?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22054\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/vda.jpg\" alt=\"Taxation of Virtual Digital Assets\" width=\"1037\" height=\"1200\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/vda.jpg 1037w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/vda-259x300.jpg 259w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/vda-885x1024.jpg 885w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/vda-768x889.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/vda-800x926.jpg 800w\" sizes=\"(max-width: 1037px) 100vw, 1037px\" \/><\/p>\n<ul>\n<li>In recent times, virtual digital assets have grown in popularity, and the amount of trading in these assets has significantly increased.<\/li>\n<li>Furthermore, a market is forming in which payment for the transfer of a virtual digital asset can be performed using another virtual digital asset.<\/li>\n<li>These considerations have required the creation of a specific tax regime.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"TDS_on_virtual_digital_assets\"><\/span><strong>TDS on virtual digital assets.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>India&#8217;s Finance Minister in her Budget 2022 recommended a 30% tax on income from virtual digital assets.<\/li>\n<li>Finance Minister also recommended a 1% above a monetary threshold Tax Deduction at Source (TDS) on payments made in relation to the transfer of virtual digital assets.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Providing_Virtual_Digital_Assets_as_a_Gift\"><\/span><span style=\"color: #000080;\">Providing Virtual Digital Assets as a Gift<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Gifts of virtual digital assets would be taxable as well, probably at prices reflected in mainstream indices, or at fair market value or ready reckoner rates set by the government from time to time.<\/li>\n<li>But because NFTs are non-fungible by nature, and each token&#8217;s worth is independent of the value of other tokens, this approach may not be viable for assessing their value.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Digital_Currency_of_Indias_Central_Bank\"><\/span><span style=\"color: #000080;\">Digital Currency of India&#8217;s Central Bank<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>While the Indian government continues to reject cryptocurrencies as legal tender, the Finance Bill recognises the potential applications of blockchain technology and announces India&#8217;s very own Central Bank controlled Currency (CBDC), which will serve as the digital counterpart of the Indian rupee.<\/li>\n<li>So because RBI would be the regulator for such a digital currency, it would be different from other cryptocurrencies, which are now decentralised.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Digital Currency &amp; Virtual Digital Assets &nbsp; What are means of Virtual Digital Assets? Finance bill 2022 defined the term \u201cvirtual digital asset\u201d by entering a\u00a0new clause (47A) under the income tax According to proposed new clause under the definition of a a\u00a0virtual digital asset is proposed to mean any information or code\u00a0or No or &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9891],"tags":[10060],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/22053"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=22053"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/22053\/revisions"}],"predecessor-version":[{"id":24211,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/22053\/revisions\/24211"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=22053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=22053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=22053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}