As the 30% tax and 1% TDS crypto regulation went into force on July 1, the Indian Government issued an update to the controversial crypto tax stating that some NFTs and digital assets are exempt from paying the same.
Digital gift cards or vouchers for the purchase of goods or services, or for discounts on goods and services, are exempt.
Reward points, mileage points, or loyalty cards, being a record given without direct monetary consideration under an award, reward, benefit, loyalty, incentive, rebate, or promotional program, are also exempt.
This exemption is also applicable for the website, platform, or application subscriptions.
The new update comes just two weeks after the Indian Govt. issued 1% TDS guidelines for virtual digital assets. The amount of VDA should exceed Rs. 50,000 or Rs. 10,000 depending on the categories of “persons” to be taken into consideration for 1% TDS.
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