Virtual Digital Asset (VDA) – Section 2(111) | Income-tax Act, 2025 vs 1961

§ 2(111) · Income-tax Act, 2025

Virtual digital asset

ITA 2025 · 2(111) ITA 1961 · 2(47A)
Definition — Section 2(111)

Means — (a) any information or code or number or token (not being Indian or foreign currency), generated through cryptographic means or otherwise, 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 unit of account, and can be transferred, stored or traded electronically; (b) a non-fungible token or any other token of similar nature; (c) any other digital asset notified by the Central Government; and (d) any crypto-asset being a digital representation of value that relies on a cryptographically secured distributed ledger or similar technology to validate and secure transactions.

Act Comparison
Income-tax Act, 2025
2(111)
Virtual digital asset
Income-tax Act, 1961
2(47A)
Virtual digital asset
Key Points
  • Maps to Section 2(47A) of the 1961 Act
  • VDAs taxed at flat 30% under Section 194 (Table) of the 2025 Act — no deduction except cost of acquisition
  • TDS at 1% under Section 393(1) [Table Sl. No. 8(vi)] on VDA transfers above ₹50,000
💡 Practical Note

Crypto gains have no deduction for exchange fees, mining costs, or losses from other VDAs — only the cost of acquisition is deductible. Each coin is taxed independently.

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