The Central Board of Direct Taxes (CBDT) has released the explanatory notes to the provisions of the Finance Act, 2022. These explanatory notes describe the substance of the provisions/amendments made by the Finance Act, 2022 relating to Income tax.
The Ministry of Finance has notified the Finance Act, 2022. The Parliament had passed ‘The Finance Bill, 2022″ the Parliament completes the Budgetary exercise for 2022-23. The Central Government has brought 39 changes before passing the Finance Bill. With the amendments in the Finance Bill, the government had proposed to tighten the norms for taxation of cryptocurrencies by disallowing set off of any losses with gains from other virtual digital assets.
According to the Finance Act, 2022, a Virtual Digital asset could be a code or number, or token which can be transferred, stored, or traded electronically. The Virtual Digital Assets will include prevailing cryptocurrencies and non-fungible tokens (NFTs) which have gained fads over the past couple of years. The Budget 2022 has brought clarity concerning the levy of Income Tax on Crypto assets.
These amendment takes effect from 1″ April, 2022.
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