Income Tax Update: CBDT extends due date for filing Form No. 26QE VDA TDS Declaration Ex-Post Facto [Read Circular]
Declaration and remittance of TDS on Virtual Digital Assets by Form 26QE extended by Central Govt. Know All Details Here.
![Income Tax Update: CBDT extends due date for filing Form No. 26QE VDA TDS Declaration Ex-Post Facto [Read Circular]](https://www.taxscan.in/wp-content/uploads/2024/03/Income-Tax-CBDT-Income-Tax-Update-TDS-Declaration-TAXSCAN.jpg "Income Tax Update: CBDT extends due date for filing Form No. 26QE VDA TDS Declaration Ex-Post Facto [Read Circular]")
In a move aimed at addressing challenges faced by taxpayers, the Government of India, under the Ministry of Finance and the Department of Revenue, has issued Circular No. 04/2024, extending the due date for filing Form No. 26QE. The circular, dated March 7, 2024, comes as a relief for specified persons who deducted tax under section 1945 of the Income-tax Act, 1961, during the period...
In a move aimed at addressing challenges faced by taxpayers, the Government of India, under the Ministry of Finance and the Department of Revenue, has issued Circular No. 04/2024, extending the due date for filing Form No. 26QE.
The circular, dated March 7, 2024, comes as a relief for specified persons who deducted tax under section 1945 of the Income-tax Act, 1961, during the period from July 1, 2022, to February 28, 2023.
As per section 1945 of the Income-tax Act, any person making payments for the transfer of virtual digital assets is required to deduct 1% of the sum as income tax. Subsequently, 'specified persons' must report these deductions electronically using Form No. 26QE within thirty days from the end of the month in which the deduction occurred.
The Circular acknowledges that specified persons who deducted tax between July 1, 2022, and January 31, 2023, faced difficulties in filing Form No. 26QE and making corresponding TDS payments due to unavailability of the form. This resulted in the imposition of fees under section 234E and interest under section 201(1A)(ii) of the Act. Furthermore, those who deducted tax between February 1, 2023, and February 28, 2023, struggled to meet the filing deadline.
In an effort to alleviate the grievances of affected taxpayers, the Central Board of Direct Taxes ( CBDT ) has exercised its powers under section 119(2)(a) of the Act to ex-post facto extend the due date for filing Form No. 26QE. The extended deadline is now set for May 30, 2023, for cases where tax was deducted between July 1, 2022, and February 28, 2023. Importantly, the Circular specifies that fees and interest levied for the period up to May 30, 2023, shall be waived.
The circular emphasizes that this extension is a one-time exception, granted in view of the specific circumstances outlined above. The Government has taken this step to provide relief to affected taxpayers facing challenges in complying with the original deadlines.
To Read the full text of the Circular CLICK HERE
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