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Who is required to deduct tax under Section 194S ?
Any person (resident or non-resident) responsible for paying any sum by way of consideration for the transfer of a virtual digital asset is required to deduct tax at source under Section 194S .
When Form 26QE is required to file?
Where the person responsible for the deduction of tax under Section 194S is a specified person, he shall furnish a statement-cum-challan in Form 26QE electronically within 30 days from the end of the month in which tax has been deducted. In this case, the deductor, being a specified person, is not required to obtain and quote TAN and he is allowed to furnish Form 26QE by quoting his PAN.
However, if the deductor is not a specified person then Form 26Q shall be furnished by him for tax deduction details.
Who is a specified person?
The following payers are the specified persons for the purpose of this provision:
a) An individual or a HUF, whose total sales, gross receipts, or turnover does not exceed Rs. 1 crore in case of business or Rs. 50 lakhs in case of a profession, during the financial year immediately preceding the financial year in which virtual digital asset is transferred;
b) An individual or a HUF who does not have any income under the head profits and gains of business or profession.
What is the due date for filing the TDS return in Form 26QE?
| Form No. | To be issued for tax deducted under | To be furnished within |
| 26QE | 194S (by specified person) | 30 days from the end of the month in which tax has been deducted |
What are the consequences of failure to furnish a TDS return?
If an assessee fails to deliver the TDS statement on or before the due date then a fee at the rate of Rs. 200 per day under Section 234E will be charged for every day of default. However, the fee shall not exceed the amount deductible. If the deductor doesn't suo-moto pay the amount of late filing fees, it shall be calculated at the time of processing of the TDS statement.
Besides late filing fees under Section 234E, a person, who fails to file the TDS statement or does not file it by the due dates, may be liable to pay a penalty under Section 271H and Section 272A .