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What is VDA (Virtual Digital Asset)?
VDA is the legal term for cryptocurrency in Indian tax law. Any crypto, NFT, or token you hold is classified as a Virtual Digital Asset under Section 2(47A) of the IT Act.
Full Explanation
Virtual Digital Asset (VDA) is the legal definition used in Indian tax law (Section 2(47A) of the Income Tax Act) to encompass cryptocurrency and related digital assets. VDA includes: any information, code, number, or token generated through cryptographic means, which can be transferred, stored, or traded electronically. This covers Bitcoin, Ethereum, altcoins, NFTs, and DeFi tokens. The VDA definition was introduced in the Finance Act 2022 alongside the 30% crypto tax framework.
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Last updated: 2026-03-21
