This tax regime will effectively apply to cryptocurrencies like Bitcoin, Ether and Dogecoin, and non-fungible tokens (NFTs). This doesn’t include the Digital Rupee that the RBI will issue.
The finance bill defines a virtual digital asset as:
a) Any information or code or number or token (not being Indian currency or foreign currency), generated through cryptographic means or otherwise, by whatever name called, providing a digital representation of value exchanged with or without consideration, with the promise or representation of having inherent value, or functions as a store of value or a unit of account including its use in any financial transaction or investment, but not limited to investment scheme, and can be transferred, stored or traded electronically.
b) A non-fungible token or any other token of a similar nature.
c) Any other digital asset, as the Central government may, by notification in the Official Gazette specify.