#DigitalAssetBill

What is DigitalAssetBill..?

1. Taxation Framework

• Finance Act 2022: Introduced a 30% tax on income from the transfer of VDAs, effective April 1, 2022. Additionally, a 1% Tax Deducted at Source (TDS) is applicable on transactions involving VDAs.

• Income Tax Bill 2025: The Central Board of Direct Taxes (CBDT) clarified that the scope of VDAs remains unchanged in this bill, incorporating amendments proposed in the Finance Bill 2025.  

2. Anti-Money Laundering (AML) Measures

• Prevention of Money Laundering Act (PMLA): In March 2023, the Ministry of Finance brought VDAs under the ambit of the PMLA. This move mandates crypto exchanges and intermediaries to adhere to AML and Know Your Customer (KYC) norms, enhancing oversight on digital asset transactions. 

3. Regulatory Approach

• The Indian government has indicated no immediate plans to introduce specific regulatory guidelines for VDAs. It emphasizes the need for international collaboration to address the borderless nature of digital assets and prevent regulatory arbitrage.