The Central Board of Direct Taxes (CBDT) has notified the Form 26QF for the quarterly statement of TDS for the transfer of Virtual Digital Assets (VDA) under section 194S of the Income Tax Act, 1961.
Finance Act, 2022 inserted a new section 194S in the Act with effect from July 01, 2022. The new section mandates a person, who is responsible for paying to any resident any sum by way of consideration for transfer of a virtual digital asset (VDA), to deduct an amount equal to 1% of such sum as income tax thereon. The tax deduction is required to be made at the time of credit of such sum to the account of the resident or at the time of payment, whichever is earlier.
Last week, the CBDT has issued guidelines in the form of Circular No. 13 of 2022 dated June 22, 2022, for transactions conducted on or through an Exchange. For all other transactions, only the clarification provided in answer to question no 6 of that circular is applicable.
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