Gift Cards, vouchers, mileage points, reward points and loyalty cards will be excluded from the definition of Virtual Digital Assets (VDA). Central Board of Direct Taxes ,CBDT) said in a notification issued late Thursday.

This will ensure that these products do not face the tax imposed on VDAs, such as cryptocurrencies and non-fungible tokens (NFTs), introduced this budget.

The CBDT said that the rebate shall include gift cards or vouchers which can be used for discounts on goods or services, profit points, rewards points or loyalty cards under Rewards, and reward, benefits, loyalty, incentives, discounts or promotional programs for goods or services under can be done to obtain. Can be used or redeemed to obtain goods or services or to obtain discounts on goods or services.

This will also include subscription to the website or platform or application, the notification, which comes into force from Thursday, said.

The Center had introduced a new tax regime applicable for cryptocurrencies from April 1 this year. Income from transactions in crypto assets is now taxed at 30% and tax is deducted at source at 1% (TDS) on transactions in such asset classes above a certain limit.

Industry had expressed concern over the broad definition of VDA.

The clarification came a day before the provision of 1% TDS on all was implemented. VDA transactions.

CBDT has also notified Form 26QF which is required to be filed by all Virtual Digital Asset Exchanges under Section 194S.