#DigitalAssetBill The term "Digital Asset Bill" can refer to different legislative initiatives in various countries aimed at regulating digital assets. Here's a breakdown of the situation in India and some other relevant developments:

India

In India, while there isn't a specific, standalone "Digital Asset Bill" that has been enacted, the government has introduced significant provisions related to Virtual Digital Assets (VDAs) through the Income Tax Bill, 2025. This bill, building upon the Finance Act, 2022, establishes a comprehensive legal framework for the taxation of VDAs.

Key aspects of the VDA framework in India:

* Definition of VDAs: The Income Tax Bill, 2025 explicitly defines VDAs under Section 2(111), which includes crypto assets, Non-Fungible Tokens (NFTs), and similar digital assets.

* VDAs as Property and Capital Assets: The bill treats VDAs as both property (under Section 92(5)(f)) and capital assets (under Section 76(1)). This classification brings gains from their sale, transfer, or exchange under capital gains tax provisions.

* Taxation of VDA Transfers: A flat 30% tax is imposed on income derived from the transfer of VDAs. Notably, unlike traditional capital assets, no deductions (other than the cost of acquisition) are allowed. For example, if you buy Ethereum for ₹5 lakh and sell it for ₹7 lakh, the ₹2 lakh profit is taxed at 30%, with no deductions for transaction costs.

* Tax Deducted at Source (TDS): A 1% TDS is applicable to the transfer of VDAs, even in peer-to-peer (P2P) transactions, to help track large crypto transactions. The threshold for TDS exemption is ₹50,000 for small traders and ₹10,000 for others.

* Taxation of Undisclosed Income: Failure to report VDA holdings can lead to their classification as undisclosed income, subject to relevant tax penalties. Tax authorities also have the power to seize VDAs during investigations of tax evasion, similar to other assets like cash or gold.