Finance Minister Nirmala Sitarman started the Lok Sabha on 13 February, the new Income Tax Bill, 2025. With this new bill, the Finance Ministry has provided more clarity to constitute the field of ‘Virtual Digital Assets’ in the country. , The step follows his presentation of the FY2025–26 budget earlier this month. During his budget speech, FM did not mention any changes in laws by applying to the crypto region, which made members of the Crypto community disappointed.
Here is how the new income tax bill defines 2025 VDAS
India is one of the many countries working to gain a deeper understanding of the web 3 industry, including blockchain, cryptocurrency and non-fangbal tokens (NFTs).
According to new Income tax bill – Any information, code, number, or tokens that are generated through cryptographic means and provide any digital representation of an underlying value- will be seen as part of the VDA ecosystem in the country.
For the first time, NFT is clearly classified as Virtual Digital Assets (VDAS) in India. These blockchain-based tokens represent unique digital or physical assets that cannot be repeated. The NFT holders have a certified evidence of ownership, which remains irreversible until they choose to move or divide it. While some NFTs act as digital collectibles, have many financial values ​​and can be traded for profit. In recent years, brands and game publishers have taken advantage of NFT in marketing strategies to attract young audiences, provide prizes and drive in-government spending.
“The central government, by notification, can exclude any digital assets from this definition,” Bill said.
Commenting on development, Arjun Vijay, the founder of Giotus, told Gadgets 360 that after proper hard work, the government could finally be warm in the VDA area.
“All transactions for stock, etc. are stored with income tax and find a mention in the automated identification system (AIS), soon we will have the same for crypto transactions,” Vijay said. “We are happy with every conversation because we meet more together with government bodies, and we get an opportunity to prove our commitment.”
Other crypto-related information that made it in the bill
The 622-Page law, which includes 536 sections, provides guidance on alignment of crypto businesses with Indian law. This makes it clear that the money generated through virtual digital assets (VDAS) is classified as “unknown income”.
On page 492, the bill underlines the responsibility of reporting the crypto transaction. It is mandatory that any unit dealing with cryptocurrency will have to submit the transaction details to the Income Tax Authority. However, the bill does not specify the format, methods or deadline for submission.
If the errors are found in the details presented, the businesses will have 30 days to correct them. Failure to do so within the given period will be considered as to present incorrect information. Companies can also report errors to tax authorities. Reporting requirements can be taken from non-compliance and action can be taken from authorities.
The Income Tax Bill 2025 is scheduled to change the Income Tax Act of 1961, which aims to simplify the tax filing process. However, the Finance Ministry has not made any changes in the current 30 percent tax on crypto income.
India’s Crypto and Web 3 communities continue to wait for the auxiliary policy amendments, recognizing the complications of assessing the risks related to the VDA in the country’s country’s scale. However, he hopes that, over time, authorities will take steps to promote the development of the web 3 sector.
“The speed is not always equal to stability. Along with so many stakeholders, public policy formulating government agencies, financial institutions and regulators will take time to ensure that it is widespread and inclusive, “Utkrash Tiwari, Chief Strategy Officer, Koinbx Crypto Exchange told Gadgets 360.
