CBDT Waives Off Late Fees & Interest for Delayed Filing of Form 26QE for Period From July 2022 to Feb. 2023

Circular No. 04/2024, dated 07-03-2024

Section 194S of the Income-tax Act, 1961, provides for the deduction of tax at the rate of 1% from any sum payable by way of consideration for the transfer of a virtual digital asset. Further, as per rule 31A(4D), a ‘specified person’ is required to report such deductions in a challan-cum statement electronically in Form No. 26QE within 30 days from the end of the month in which such deduction is made.

However, due to the non-availability of Form 26QE, the specified persons who deducted tax under section 194S from 01.07.2022 to 31.01.2023 could not file Form No. 26QE and pay corresponding TDS on or before the due date. This resulted in the levy of fees under section 234E and interest under section 201(1A)(ii). Further, the specified persons who deducted tax under section 194S from 01.02.2023 to 28.02.2023 had insufficient time to file Form No. 26QE and pay the corresponding TDS thereon.

To address the grievances of such specified persons, the Central Board of Direct Taxes (CBDT) has issued a circular extending the due date to 30.05.2023 for furnishing of Form 26QE for the tax deducted under section 194S during the period 01-07-2022 to 28-02-2023.

Accordingly, the fee levied under section 234E and interest charged under section 201(1A)(ii) in all such cases for the period up to 30.05.2023 shall be waived.

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