Has govt gone too far by slapping a 1% TDS on transfers of virtual digital assets?

The state has great latitude in matters of law-making. More so in the context of fiscal laws like taxation. There are, however, times when the state overreaches and tests the limits of constitutionality. The requirement to deduct a tax of 1% on the transfer of virtual digital assets (VDAs) to resident Indians from July 1, which was announced by Nirmala Sitharaman on March 25, may be an example of such an overreach.