How are digital assets taxed in India?

In India, digital assets are subject to taxation under the Income Tax Act, 1961. The Finance Act 2022 introduced a new tax regime for virtual digital assets (VDAs), including cryptocurrencies and NFTs. Any income from the transfer of VDAs is taxed at a flat rate of 30%, plus applicable surcharge and cess. Additionally, a 1% tax deducted at source (TDS) is applicable on payments made for the transfer of VDAs. The Finance Act 2023 further clarified the taxation of digital assets and introduced measures to curb tax evasion.