CBDT notifies challan-cum-statement Form 26QE for payment of tax deducted on VDAs

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  • Last Updated on 23 June, 2022

Income-tax Rules; CBDT

Notification No. 67/2022, dated 21-06-2022

The Central Board of Direct Taxes (CBDT) has notified Income-tax (19th Amendment) Rules, 2022 amending the Income-tax Rules, 1962 to incorporate changes introduced by the Finance Act, 2022 related to TDS.

The Board has amended existing Rules 30, 31 & 31A, annexure to Form No. 26Q, and Form Nos. 26QB, 26QC & 26QD. The board has also inserted new Form nos. 26QE and 16E as well.

The key changes introduced by the CBDT vide Income-tax (19th Amendment) Rules, 2022 have been elaborated below:

1. Tax deducted on VDA to be deposited in challan-cum-statement in Form 26QE
A new sub-rule (2D) has been inserted in Rule 30 which provides for payment of tax deducted at source (TDS) under section 194S.

Section 194S provides that any person, responsible for paying to a resident any sum by way of consideration for the transfer of a virtual digital asset (VDA), shall deduct tax at the rate of 1% of such sum.

Sub-rule (2D) provides that tax deducted under section 194S shall be paid to credit of the Central Government within 30 days from the end of the month in which the deduction is made. Such payment shall be made by a challan-cum-statement in Form 26QE electronically.

2. Certificate of tax deducted at source on VDA to be issued in Form 16E
A new sub-rule (3D) has been inserted in Rule 31 which provides for furnishing of certificate of deduction of tax at source under section 194S.

A person responsible for deduction of tax under section 194S shall furnish the certificate of deduction of tax at source in Form 16E to the payee within 15 days from the due date for furnishing the challan-cum-statement in Form 26QE.

3. Separate reporting of tax payments made in accordance with Provisos to Sections 194B, 194R and 194S

Proviso to section 194B provides that if winnings in Lottery or Crossword Puzzles are partly in cash and partly in kind and the cash part isn’t sufficient to pay the applicable taxes, the person responsible for paying such winning shall release the winning only after payment of applicable taxes to the credit of Central Government.

Similar provisions are incorporated in the provisions of section 194R(1) and section 194S(1).
The Board has amended the Annexure to Form 26Q which seeks deductee/payee wise break up of TDS. In case wherein the proviso of Section 194B, 194R and 194S are applicable, the annexure seeks the following additional details from the deductor:

      • Amount of tax deposited;
      • BSR Code of bank;
      • Date of payment; and
      • Challan serial number.
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