Indian Currency – Section 2(54) | Income-tax Act, 2025 vs 1961

§ 2(54) · Income-tax Act, 2025

Indian currency

ITA 2025 · 2(54) ≈ Expl. to S.2(47A) · 1961 Act
Definition — Section 2(54)

Has the same meaning as assigned to it in section 2(q) of the Foreign Exchange Management Act, 1999. Accordingly, "Indian currency" means currency which is expressed or drawn in Indian rupees, but does not include special bank notes and special one rupee notes issued under section 28A of the Reserve Bank of India Act, 1934 — those being notes issued for controlling circulation outside India and which are not legal tender within India.

Act Comparison
Income-tax Act, 2025
2(54)
Indian currency
Income-tax Act, 1961
Expl. to S.2(47A)
Indian currency — defined via FEMA reference in Explanation to S.2(47A)
Key Points
  • Existed in the 1961 Act via Explanation to Section 2(47A) — the 2025 Act elevates it to a standalone Section 2 definition; both Acts cross-refer to Section 2(q) of FEMA, 1999
  • Relevant for VDA provisions — virtual digital assets are expressly defined as instruments that are not Indian currency or foreign currency
  • The digital rupee (e₹) issued by RBI qualifies as Indian currency — it is NOT a virtual digital asset for tax purposes
💡 Practical Note

The digital rupee (e₹) issued by RBI qualifies as 'Indian currency' — it is NOT a virtual digital asset for tax purposes.

Published by Simplified Tax India — Clear, section-wise comparison of Income-tax Acts. ← Back to Section 2 Definitions Table
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