2025 Income Tax Bill Updates Definition of Virtual Digital Assets, Adds NFTs: Important Points to Note
On February 13, Finance Minister Nirmala Sitharaman presented the new Income Tax Bill, 2025 to the Lok Sabha. This bill aims to provide more clarity on the definition of ‘virtual digital assets (VDAs)’ in India. The introduction of this bill comes after the presentation of the FY2025-26 budget earlier this month where no changes to the tax laws regarding the crypto sector were mentioned, disappointing members of the crypto community.
The new Income Tax Bill, 2025 defines VDAs and India is actively seeking a better understanding of the Web3 industry, which includes blockchain, cryptocurrencies, and non-fungible tokens (NFTs).
According to the Income Tax Bill, any information, code, number, or token that is generated through cryptographic means and provides digital representation of value will now be considered part of the VDA ecosystem in India.
This marks a significant development in the taxation of virtual digital assets in the country.
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