Section 194S of the Income Tax Act requires any person paying consideration for transfer of a virtual digital asset to a resident to deduct 1% TDS on that payment. ‘Specified persons’ who deducted such TDS between 1st July 2022 and 28th February 2023 were required to file Form 26QE and pay the corresponding TDS within 30 days of the month-end.
However, due to the unavailability of Form 26QE initially, many could not file it on time, leading to levy of fees under Section 234E and interest under Section 201(1A)(ii).
To address this issue, the CBDT has extended the due date for filing Form 26QE for such cases to 30th May 2023. Any fee under Section 234E or interest under Section 201(1A)(ii) levied for delayed filing up to 30th May 2023 will be waived.
This is a one-time exception granted by the CBDT, vide Circular 4/2024, considering the circumstances around unavailability of Form 26QE initially.
CBDT Income Tax Circular 4/2024 dated 07/03/2024: Form 26QE Due Date Extended for TDS on Virtual Digital Assets