Missing word ‘Crypto’ in law sets off alarms

economictimes.indiatimes.com:

The broad definition of «virtual digital assets» and «any information, code, or otherwise» in the newly announced framework could cover a large range of intellectual properties and even online assets created by multinationals, as per the experts. This could eventually mean that taxmen may be able to question certain assets or intellectual properties, and they could eventually be taxed at a higher rate.

Did you Know?

Sunny Leone took the lead among Indian actors to secure her digital assets when she broke the news about her association with NFT, two months back. This made her the first Indian actress to mint NFTs

Many tax experts are seeking a definitive clarification from the government in this regard. They believe, as was done in the past, taxmen will vie for maximum taxation based on their own interpretations. «The proposals toward taxation of virtual digital assets seem to have multiple loose ends with the kinds of wordings used to define the said assets, such as 'Information', 'or Otherwise'. Also, the said assets have specifically been excluded from the definition of Indian or foreign currency,” said Rahul Garg, managing partner of tax and regulatory consultants Asire Consulting. “With such language used under section 2(47A), it may trigger multiple issues as the reach of the definition could be beyond the imagination of anyone when anything and everything has started operating in the digital world with new concepts of wallets, platforms, etc. coming in.» This also comes at a time when many large multinationals are moving toward blockchain technology for storing their information regarding clients and projects. «The definition that the government has right now is too broad and could