CBDT notifies Form 26QF for filing of statement of tax deposited u/s 194S by ‘Exchange’

Notification No. 73/2022, dated 30-06-2022

The Central Board of Direct Taxes (CBDT) has amended Rule 31A of the Income-tax Rules, 1962 notifying Form 26QF for filing of TDS statement in respect of tax deducted under section 194S by ‘Exchange’.

The board vide Circular no. 13 of 2022, dated 22-06-2022 has issued guidelines giving clarity on who is required to deduct tax under section 194S when the transfer of VDA is taking place on or through an Exchange.

Said guidelines cast responsibility on Exchange to deduct tax at source and furnish a quarterly statement in Form no. 26QF in the following situations:

a) There is a written agreement between the Exchange and the broker that the broker alone shall be deducting tax if payment between Exchange and Seller is done through a broker.
b) There is a written between Exchange with the buyer/broker that Exchange would be paying tax on the transfer of VDA that takes place on or through an Exchange and the VDA is owned by such Exchange.

The board has also inserted a new sub-rule 4E to provide that Exchange shall also be responsible to furnish particulars of account paid or credited on which tax was not deducted in accordance with guidelines.

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