Taxation of Virtual Digital Assets (VDA) Union Budget 2022

We have attached herewith a snapshot of the taxation of virtual digital assets (VDA) from the Union Budget 2022. The key highlights include:

1. VDA to be taxable at the rate of 30%

2. Tax withholding at 1% upon transfer of VDA to a resident buyer

3. No deductions except the cost of acquisition

4. Losses cannot be setoff against income or carried forward

5. RBI to issue new digital rupee based on blockchain technology