Mr. Amit, an Indian resident, invested in Virtual Digital Assets (VDAs) such as cryptocurrencies and Non-fungible Tokens (NFTs). On 15 April, 2024,…

Tax payable by Mr. Amit for A.Y. 2025-26 Particulars Amount in ₹ Amount in ₹ On sale of Bitcoin Sale consideration 28,00,000 Less: Cost of acquisition [60lakhs/2] 30,00,000 [Expenses on transfer of VDA is not allowable as deduction] Loss from transfer of VDA not allowable to be set off against any other income (2,00,000) On sale of NFTs Sale consideration 6,50,000 Less: Cost of acquisition [FMV of NFTs on 16.8.2024, being the date of receiving the gift] 5,00,000 [Expenses on transfer of VDA is not allowable as deduction] 1,50,000 Gift received from Mr. Sushil 5,00,000 Taxable [Since the FMV of NFTs on 16.8.2024 exceeds - 50,000] Other income 6,50,000 11,50,000 Total Income 13,00,000 Tax on other income of 11,50,000 [₹ 1,12,500 plus - 45,000 @ 30% of 1,50,000] 1,57,500 Tax on income from transfer of VDA income of 1,50,000@30% 45,000 2,02,500 Add: Health and education cess @ 4% 8,100 2,10,600 Less: TDS under section 194S [28lakhs x 1% +6.50 lakhs x 1%] 34,500 Net tax payable 1,76,100