Wed Feb 12 15:20:00 UTC 2025: ## India Expands Definition of “Virtual Digital Assets” in Tax Bill

**New Delhi** – India’s Finance Bill 2025 has broadened the definition of “virtual digital assets” (VDAs) to explicitly include all crypto-assets, aligning with the OECD’s Crypto-Asset Reporting Framework (CARF). The move aims to encompass a wider range of digital assets, including utility tokens, security tokens, and crypto derivatives, currently operating in a largely unregulated Indian market.

The updated definition, announced as part of the 2025 Union Budget, also extends the scope of “undisclosed income” for search and seizure proceedings to include VDAs. This strengthens the government’s ability to investigate and address tax evasion within the crypto space.

While the Income Tax Bill itself remains unchanged regarding VDAs, the government plans to introduce a new reporting requirement for crypto-assets, similar to the Statement of Financial Transactions. Further details, including reporting entities and thresholds, will be revealed through subsequent notifications. Failure to disclose VDA income, as per regulations introduced in 2022, remains subject to search and seizure proceedings.

The changes are seen as a significant step towards improving regulatory oversight and tax collection in India’s rapidly evolving crypto market. The government’s efforts focus on addressing current shortcomings in tracking crypto activities, closing loopholes and strengthening its ability to monitor transactions.

**(Separate Note: The unrelated financial performance of Honasa Consumer, parent company of Mamaearth, reporting a Rs 26 crore net profit in Q4 2024 and a 6% revenue increase, is also reported separately.)**

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