CBDT clarifies what all qualify as “virtual digital assets”

The Central Board of Direct Taxes (CBDT) has released a notification that issues clarifications on the taxation of virtual digital assets.

In the notification, CBDT stated that gift cards, vouchers, mileage points, reward points, and loyalty cards should be excluded from the head of “virtual digital assets”. These specific goods won’t be subjected to the tax imposed on VDAs, including cryptocurrencies and non-fungible tokens (NFTs).

CBDT said that the gift cards, vouchers that can be redeemed for goods and services, mileage points, reward points and loyalty points, reward, benefit, loyalty, incentive, rebate, or promotional programmes which can be utilised for discounts or exchanged for goods and services shall stand exempted under this tax.