Taxation Of Crypto Currency and Virtual Digital Assets In India: A Critical Analysis

Abstract

Crypto currency and virtual digital assets are introduced as means of value creation and value of storage which is free from governmental controls. This is controlled by block chain technology. There is no way that a single person controls instead where all the people come together to create a decentralized control where everybody's value is protected. In recent times the crypto currencies are held, transferred, transacted more as means to earn more and more profits and revenue as a trader. Considering this study the taxation aspects of crypto currency are to be discussed at large. The government of India on 1^st February 2022 introduced the concept of virtual digital asset and more provision for taxability. In this study authors focused on the study of crypto currency and virtual digital assets importance in India. The income tax aspects and the GST aspect that taxation before 1st April 2022 and after 1st April 2022 how the changes have come and what would be the future implications of taxations of crypto currencies are discussed. The research is based on secondary data taken from Income tax act 1961 and finance act 2022 and further suggestion are given for the strengthening the law.