INCOME TAX UPDATE : Income Tax Department has granted Ex-post facto extension of due date for filing Form No. 26QE which was required to be filed during the period 01.07.2022 to 28.02.2023 (pertaining to F.Y. 2022-23)
Circular No. 04/2024
F. No. 275/01/2023-IT(B)Government of India
Department of Revenue
New Delhi, the 07th March, 2024
Sub: Ex-post facto extension of due date for filing Form No. 26QE which wasrequired to be filed during the period 01.07.2022 to 28.02.2023 (pertainingto F.Y. 2022-23)- reg.
As per section 194S of the Income-tax Act, 1961 (hereinafter referred to as “theAct”), any person responsiblepaying to any resident person any sum by way ofconsideration for the transfer of a virtual digital asset is required to deduct an amount aequal to 1% of such sum as incomethereon. Further, as per sub-rule (4D) of rule31A, a ‘specified person’ is required to report such deductions in a challan-cumstatement electronically in Form No. 26QE within thirty days from the end of the monthin which such deduction is made.
2. It has come to the notice of the Central Board of Direct Taxes (‘the Board’) thatspecified persons who deducted tax under section 194S of the Act during the periodfrom 01.07.2022 to 31.01.2023, could not file Form No. 26QE and pay correspondingTDS on oraeforedue date, due to unavailability of Form No. 26QE. This hasresulted in consequential levy of fee under section 234E and interest under clause (ii)of sub-section (1A) of section 201 of the Act. Further, the specified persons whodeducted tax under section 194S during the period from 01.02.2023 to 28.02.2023had insufficient time to file Form No. 26QE and pay corresponding TDS thereon.
3. In order to address the grievances of such specified persons andexerciseof the powers conferred under section 119(2)(a) of the Act, the Board has decidedto, ex-post facto, extend the due date of filing of Form No. 26QE for specified persons_who deducted tax under section 194S but failed to file Form No. 26QE. The due dateis hereby extended30.05.2023 in those cases where the tax was deducted byspecified persons under section 194S of the Act during the period from 01.07.2022 to28.02.2023. Fee levied under section 234E and/or interest charged under section201(1A)(ii) of the Act in such cases for the period upto 30.05.2023, shall be waived.
4. It is clarified that the above extension is a one-time exception in viewthecircumstances referred to above.
5. Hindi version shall follow.