#DigitalAssetBill A "Digital Asset Bill" generally refers to proposed or enacted legislation aimed at regulating digital assets, which can include cryptocurrencies, non-fungible tokens (NFTs), and other digitally represented assets. These bills often seek to address various aspects such as taxation, investor protection, anti-money laundering (AML) and counter-terrorism financing (CTF) measures, and the legal classification of these assets.

Here's a look at the current situation in India and Pakistan regarding digital asset bills:

India

India has introduced the Income Tax Bill, 2025, which includes specific provisions for the taxation of Virtual Digital Assets (VDAs). Key aspects of this bill include:

* Definition of VDAs: The bill defines VDAs under Section 2(111) as digitally represented assets using blockchain or cryptographic technology, including cryptocurrencies and NFTs.

* Taxation: A flat tax rate of 30% is imposed on income from the transfer of VDAs, with no deductions allowed except for the cost of acquisition.

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

* Classification as Property and Capital Assets: The bill explicitly treats VDAs as property and capital assets, aligning India with global practices in countries like the UK, Australia, and New Zealand. This means gains from their sale are subject to capital gains tax rules.

* Inclusion in Undisclosed Income: Failure to report VDA holdings can lead to their classification as undisclosed income, subject to relevant tax laws. Tax authorities have the power to seize VDAs in cases of tax evasion.

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