Budget 2022: Virtual digital assets are here to stay, says expert

'We are left with some open issues which need clarifications on the VDA', said Aravind Srivatsan

India is emerging as one of the world’s fastest-growing markets for cryptocurrency trading with user base of estimated two million. As stated by finance minister in her budget speech, RBI is expected to create a Central Bank Digital Currency (CBDC), on the lines of China’s Central Bank.

Budget 2022 has provided for taxing rights effective April 1, 2022 under section 115BBH by defining comprehensively the term Virtual Digital Assets (VDA) under the Income tax act under a Chapter dealing with Tax on Special Cases, providing for a flat rate of 30 percent. To ring fence the compliance circle, withholding tax