India: Implemented Finance Bill 2022 including expansion of income tax to virtual digital assets

On 1 April 2022, the provisions making the income from trading virtual digital assets subject to an income tax of 30% outlined in the Finance Bill 2022 are implemented. The Bill specifies that cryptocurrencies and non-fungible tokens are classified as virtual digital assets. Further, the Bill establishes that trading losses cannot be set off against income from other sources. Finally, the Bill introduces a one-percent tax-deducted-at-source on all transactions involving virtual digital assets which will come into force on 1 July 2022.