Tax on Gifting Crypto, NFTs, and VDAs in India

New Tax Rules: From FY 2022-23, gifting cryptocurrencies, NFTs, and other Virtual Digital Assets (VDAs) are taxable for the recipient. Flat Tax Rate: Income from the transfer of VDAs is taxed at a flat 30%, with no deductions except for acquisition costs.

Income Addition: The value of a gifted VDA is added to the recipient's income and taxed as per their income tax slab. Valuation: Fair market value on the gift date is used for taxation.

Exemptions: Gifts from specified relatives or on occasions like weddings are exempt. Forms of Gifting: Crypto gift cards, paper wallets, and tokens can be used to gift cryptocurrencies.

Compliance: Recipients must report the gift's value as 'Income from Other Sources' and keep records. Capital Gains: When sold by the recipient, profits from the gifted crypto are taxed as capital gains.