Insertion of Form No. 26QF to the Income tax Rules, 1962 vide Income-tax (20th Amendment) Rules, 2022

The Central Board of Direct Taxes has notified Income-tax (20th Amendment) Rules, 2022 to amend the Income-tax Rules, 1962. The amendment modifies Rule 31 A dealing with Statement of deduction of tax under section 200 (3) and insertion of Form No. 26QF to the Income tax Rules, 1962.

  • In the Income-tax Rules, 1962, in rule 31A dealing with Statement of deduction of tax under sub-section (3) of section 200, a proviso has been inserted:

Provided that where the exchange has, in accordance with the guidelines issued under subsection (6) of section 194S, agreed to pay tax in relation to a transaction of transfer of a virtual digital asset, owned by it as an alternative to tax required to be deducted by the buyer of such asset under section 194S, the Exchange shall deliver or cause to be delivered, a quarterly statement of such transactions in Form No. 26QF to the Principal Director General of Incometax (Systems) or Director General of Incometax (Systems) or the person authorised by the Principal Director General of Incometax (Systems) or the Director General of Incometax (Systems).


Note: “
Exchange” means a person that operates an application or platform for transferring of virtual digital assets, which matches buy and sell trades and execute the same on their application or platform;

  • The following sub rule is inserted in Rule 31A

(4E) The exchange referred to subrule (1) shall, at the time of preparing of quarterly statement in Form No. 26QF, furnish particulars of account paid or credited on which tax was not deducted in accordance with guidelines issued under subsection (6) of section 194S..

 

  • Form No. 26QF has been inserted dealing with Quarterly statement of tax deposited in relation to transfer of virtual digital asset. 

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