CBDT Notifies Exclusion Of Gift Cards, Loyalty Points And Others From Crypto Tax, Bitcoin Down 6%
The Central Board of Direct Taxes (CBDT) has clarified that gift cards, reward points, mileage points, any loyalty or incentive programs, subscription to websites or apps, should not be included in the Virtual Digital Asset (VDA) definition.
In accordance with the Income Tax Act 1961, VDA is defined as any information, code, number, token or the like formed using cryptography or other techniques, but excluding the India or any other foreign currency. So when this definition is read with clarifications from CBDT, only cryptocurrencies, crypto tokens, non-fungible tokens, and other crypto-related objects fall under the VDA definition.
“The central government hereby notifies the following virtual digital assets which will be excluded from the definition of a virtual digital asset. (i) gift card or vouchers, being a record that can be used to obtain goods or services or a discount on goods or services; (ii) Miles points, reward points or loyalty card, being a record given without direct monetary consideration as part of a reward, reward, benefit, loyalty, an incentive, discount or promotional program that can only be used or redeemed to obtain goods or services or a discount on goods or services; (iii) Subscription to websites or platforms or application,” the notice from CBDT read.
The global crypto market capitalization fell 4.16% to $863.55 billion as of 8:50 a.m. Global crypto volume fell 11.68% to $63.61 billion, according to data from Coinmarketcap.
Bitcoin (BTC), the world’s oldest cryptocurrency, was trading at $19,177.27, down 5.48% in the past 24 hours. Ethereum (ETH) fell 4.59% to $1,043.95.
Among other major coins, Cardano (ADA) was down 4.35% at $0.4469, Algorand (ALGO) was trading with a loss of 3.25% at $0.3044, Solana (SOL) was trading with a loss of 7.23% to $32.30, Polkadot (DOT) was down 5.62% to $6.66, and Binance Coin (BNB) was down 4.92% to $214.52.
Today’s top gainer was MetaversePay (MVP), which rose 1070.82% to $0.00000959. The big loser was Tweet To Earn (TTE), which fell 98.26% to $0.0000003449.
Meme Coin and DeFi prices
Dogecoin (DOGE) fell 1.71% to $0.06635. Its volume to market capitalization ratio is 0.05279. Rival Shiba Inu (SHIB) was down 3.64% at $0.000009927.
Dogelon Mars (ELON) lost 14.25% to trade at $0.0000003069, Floki Inu (FLOKI) lost 1.13% to $0.000005946 and Samoyed Coin (SAMO) rose 0.16% at $0.007179.
In the DeFi segment, YFI (yearn.finance) was down 3.16% at $5,326.44, and Terra Classic (LUC) was trading with a loss of 0.23% at $0.0001257. Avalanche (AVAX) fell 8.4% to $16.27, Uniswap (UNI) traded with a loss of 4.89% to $4.77 and Aave (AAVE) fell 3.7% to $56.19.