India's Budget 2022-23 – Key Highlights

Introduction

India's Union Budget (the "Budget") was announced on February 1, 2022, and the Finance Bill, 2022 (the "Finance Bill") was tabled in Parliament. The Finance Bill will be discussed in Parliament before its enactment, and therefore, it is likely that the Finance Bill may be amended because of these discussions.

We have summarized below some of the key income tax proposals made in the Budget. 

New taxation scheme for virtual digital assets

Virtual digital assets (like cryptocurrencies and NFTs) have gained tremendous popularity in recent times and their trading volumes have increased substantially. A new taxation scheme has been proposed in the Finance Bill to tax virtual digital assets.