Virtual Digital Assets (VDA) under Income-tax Act, 2025 & Rules, 2026

Virtual Digital Assets (VDAs) like cryptocurrencies and NFTs are now fully regulated under India’s Income-tax Act, 2025. With a flat 30% tax rate, strict compliance rules, and no allowance for loss adjustment, investing in digital assets has become both transparent and highly taxed.

The introduction of 1% TDS on transactions and detailed reporting requirements under the Income-tax Rules, 2026 clearly signals the government’s intent to track and regulate the digital economy.

Whether you are a trader or long-term investor, understanding VDA taxation is crucial to avoid unnecessary tax burdens and stay compliant in this evolving financial landscape.