The Central Board of Direct Taxes vide notification dated 30th June, 2022 has issued the Income-tax (20th Amendment)
Rules, 2022. They shall come into force from 1st day of July, 2022. The amendment provides that where the exchange has agreed to pay tax in relation to a transaction of transfer of a virtual digital asset, owned by it, the Exchange shall deliver or cause to be delivered, a quarterly statement of such transactions in Form No. 26QF to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems).
“Exchange” means a person that operates an application or platform for transfer of virtual digital assets, which matches buy and sell trades and execute the same on their application or platform.
Central Government has also excluded following virtual digital assets from the definition of virtual digital asset:
(i) Gift card or vouchers, being a record that may be used to obtain goods or services or a discount on goods
or services;
(ii) Mileage points, reward points or loyalty card, being a record given without direct monetary
consideration under an award, reward, benefit, loyalty, incentive, rebate or promotional program that may
be used or redeemed only to obtain goods or services or a discount on goods or services;
(iii) Subscription to websites or platforms or application.
