Section 115BBH → Section 123
Tax on income from virtual digital assets (Crypto/NFTs)
Quick Answer
Section 115BBH of the Income Tax Act, 1961 (Tax on income from virtual digital assets (Crypto/NFTs)) corresponds to Section 123 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 115BBH
Provision Summary
Taxes income from the transfer of any Virtual Digital Asset (VDA) at a flat 30%. No deductions (except cost of acquisition) or loss set-offs are allowed.
Sec 123
Provision Summary
Retained. The strictest ring-fencing in the entire Act. VDA losses cannot be set off against any other income, nor can VDA profits absorb other business losses.
Key Changes & Highlights
- Infrastructure costs (like mining rigs) are explicitly denied as a 'cost of acquisition'.
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Frequently Asked Questions
What does Section 115BBH of the Income Tax Act 1961 deal with?
Section 115BBH (Tax on income from virtual digital assets (Crypto/NFTs)) Taxes income from the transfer of any Virtual Digital Asset (VDA) at a flat 30%. No deductions (except cost of acquisition) or loss set-offs are allowed.
What is the new section number for Section 115BBH under the Direct Tax Code 2025?
Section 115BBH of the ITA 1961 maps to Section 123 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 115BBH under the new tax code?
Section 115BBH is marked as "Retained" with status "Active". Impact: Critical - Governs the entire cryptocurrency and Web3 taxation landscape in India.
What are the key changes to Section 115BBH under DTC 2025?
Infrastructure costs (like mining rigs) are explicitly denied as a 'cost of acquisition'.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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