<h1>Finance Act 2022 taxes virtual digital asset transfers at 30% and permits an updated return within two years with additional tax.</h1> The Finance Act, 2022 prescribes revised income tax charging provisions including revised surcharge rates and a 4% Health and Education Cess, establishes a statutory definition and specific tax regime for virtual digital assets taxing transfers at 30% (no deductions save cost of acquisition and no set off of related losses) with proposed TDS/TCS reporting, creates an Updated Return facility allowing declarations within 24 months with additional tax and interest, and mandates faceless electronic assessment procedures via a National Faceless Assessment Centre with dedicated units for assessment, verification, technical assistance and review. It also tightens compliance, registration and tax treatment for charitable and specified institutions and strengthens anti evasion rules regarding undisclosed income and unexplained credits.