Share:   Share on facebook   Share on twitter   Share on linkedin

        Home        
 
Blank

Home Circulars 2022 Income Tax Income Tax - 2022 Circular - 2022 This

  • Login

Latest - TMI e-Newsletter

Forget password       New User/ Regiser



 

Order under section 119 of the Income-tax Act, 1961 (the Act) in relation to tax deduction at source under section 194S of the Act for transactions other than those taking place on or through an Exchange - Income Tax - 14/2022

Extract

..... 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. This deduction is not required to be made in the following cases:- (i) the consideration is payable by a specif .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Order under section 119 of the Income-tax Act, 1961 (the Act) in relation to tax deduction at source under section 194S of the Act for transactions other than those taking place on or through an Exchange - Income Tax

X X   X X   Extracts   X X   X X

..... d. Sub-section (6) of section 194S of the Act authorises Central Board of Direct Taxes (CBDT) to issue guidelines, for removal of difficulties, with the approval of the Central Government. Accordingly, in exercise of the power conferred by sub-section (6) of section 194S of the Act, CBDT has issued guidelines in the form of Circular No. 13 of 2022 dated 22.06.2022 for transactions conducted on or through an Exchange. For all other transactions only the clarification provided in answer to questio .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Order under section 119 of the Income-tax Act, 1961 (the Act) in relation to tax deduction at source under section 194S of the Act for transactions other than those taking place on or through an Exchange - Income Tax

X X   X X   Extracts   X X   X X

..... ent in accordance with the time and procedure prescribed in the Act read with the relevant provisions of the Income-tax Rules, 1962. After deduction, the deductor is required to furnish a quarterly statement (in Form No. 26Q) for all such transactions of the quarter on or before the due date prescribed in the Income-tax Rules, 1962. For specified person Form 26QE has been introduced. It may be clarified that the TDS shall be on consideration for transfer of VDA less GST. 2) Liability to deduct t .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Order under section 119 of the Income-tax Act, 1961 (the Act) in relation to tax deduction at source under section 194S of the Act for transactions other than those taking place on or through an Exchange - Income Tax

X X   X X   Extracts   X X   X X

..... transfer of VDA and show the evidence to other so that VDAs can then be exchanged. This would then be required to be reported in TDS statement along with challan number by both of them. This year Form 26Q has included provisions for reporting such transactions. For specified persons, Form 26QE has been introduced. 3. Interplay between provision of section 194S and section 194Q Without going into the merit whether VDA is goods or not, it is clarified that once tax is deducted under section 194S o .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Order under section 119 of the Income-tax Act, 1961 (the Act) in relation to tax deduction at source under section 194S of the Act for transactions other than those taking place on or through an Exchange - Income Tax

X X   X X   Extracts   X X   X X