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ARTICLE · 02 MAY 2022

Stand Of Indian Government On Protection Ipr For Virtual Digital Assets

Khurana & Khurana, Advocates and IP Attorneys
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The phrase "virtual digital assets" is used in the Finance Bill to refer to both cryptocurrencies and NFTs. The criteria for identifying bitcoins or similar apps as virtual digital assets were purposefully kept broad.

IndiaTechnology

The phrase "virtual digital assets" is used in the Finance Bill to refer to both cryptocurrencies and NFTs. The criteria for identifying bitcoins or similar apps as virtual digital assets were purposefully kept broad. Aside from the distinctions in their characteristics, cryptocurrencies serve as payment systems in which units are transferable and have some value.

If a cryptocurrency fits the following conditions, it is deemed a virtual digital asset and is taxable under the Income Tax Act of 1961:

  • It can take the shape of data, code, numbers, or tokens.
  • It's created in some way, whether cryptographically or otherwise
  • It performs the function of a digital representation of value.

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