CBDT EXEMPTED GIFT CARDS AND REWARD POINTS FROM THE AMBIT OF VIRTUAL DIGITAL ASSETS

The Central Board of Direct Taxes (CBDT) declared in a notification that gift cards, vouchers, mileage points, reward points, and loyalty cards will not be included in the definition of virtual digital assets (VDAs). This would ensure that these items are exempt from the tax imposed on VDAs introduced in this budget, such as cryptocurrencies and non-fungible tokens (NFTs).
Gift cards or vouchers that can be used to get goods or services for a discount, mileage points, reward points, loyalty cards under awards, and benefits from loyalty, incentive, rebate, or promotional programmes that can be used to get goods or services or a discount on them are all exempt, according to the CBDT.
Additionally, it will contain application, platform, or website subscriptions. A new taxation that applies to cryptocurrencies as of April 1 of this year is implemented by the Central Government. A 30% tax is now applied to income from transactions involving cryptoassets, and transactions in these asset that exceed a certain threshold are subject to a 1% tax deducted at source (TDS).
In accordance with Section 194S, all virtual digital asset exchanges are obligated to file Form 26QF.

For any query/registration/advisory related to GST, Company, Taxation laws, and Updates, Kindly visit www.onfiling.com

Contact: +91 9599935573

E-mail: info@onfiling.com

Please follow and like us:

Leave a Comment