{"id":5972,"date":"2023-12-06T12:40:57","date_gmt":"2023-12-06T07:10:57","guid":{"rendered":"https:\/\/simplemyfiling.com\/?p=5972"},"modified":"2023-12-06T12:42:41","modified_gmt":"2023-12-06T07:12:41","slug":"tds-on-transfer-of-virtual-digital-assets-vda-section-194s","status":"publish","type":"post","link":"https:\/\/simplemyfiling.com\/index.php\/2023\/12\/06\/tds-on-transfer-of-virtual-digital-assets-vda-section-194s\/","title":{"rendered":"TDS ON TRANSFER OF VIRTUAL DIGITAL ASSETS (VDA) \u2013 SECTION 194S"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"5972\" class=\"elementor elementor-5972\">\n\t\t\t\t<div class=\"elementor-element elementor-element-a080083 e-flex e-con-boxed e-con e-parent\" data-id=\"a080083\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e301a2e eael-dual-header-content-align-center elementor-widget elementor-widget-eael-dual-color-header\" data-id=\"e301a2e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"eael-dual-color-header.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"eael-dual-header\">\n\t\t\t\t<h2 class=\"title eael-dch-title\"><span class=\"eael-dch-title-text eael-dch-title-lead lead solid-color\">TDS ON TRANSFER OF<\/span> <span class=\"eael-dch-title-text\"> VIRTUAL DIGITAL ASSETS (VDA) \u2013 SECTION 194S<\/span><\/h2>\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-375a9e09 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"375a9e09\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-515d5dcd\" data-id=\"515d5dcd\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6580e071 elementor-widget elementor-widget-text-editor\" data-id=\"6580e071\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><\/p>\n<div class=\"is-layout-constrained wp-block-group-is-layout-constrained\">\n<figure style=\"text-align: left;\">\n<ul>\n<li>\n<div class=\"flex-1 overflow-hidden\">\n<div class=\"react-scroll-to-bottom--css-sojdz-79elbk h-full\">\n<div class=\"react-scroll-to-bottom--css-sojdz-1n7m0yu\">\n<div class=\"flex flex-col pb-9 text-sm\">\n<div class=\"w-full text-token-text-primary\" data-testid=\"conversation-turn-482\">\n<div class=\"px-4 py-2 justify-center text-base md:gap-6 md:py-6 m-auto\">\n<div class=\"flex flex-1 text-base mx-auto gap-3 md:px-5 lg:px-1 xl:px-5 md:max-w-3xl lg:max-w-[40rem] xl:max-w-[48rem] } group final-completion\">\n<div class=\"relative flex w-full flex-col lg:w-[calc(100%-115px)] agent-turn\">\n<div class=\"flex-col gap-1 md:gap-3\">\n<div class=\"flex flex-grow flex-col max-w-full\">\n<div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"737c554f-f147-41ce-ac4c-b619ce5b2328\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p><strong>Understanding Section 194S: TDS on Transfer of Virtual Digital Assets (VDAs)<\/strong><\/p>\n<p><strong>Introduction:<\/strong><\/p>\n<p>In the Budget 2022, the government introduced Section 194S to enforce TDS on the transfer of Virtual Digital Assets (VDAs), including cryptocurrency, NFTs (Non-Fungible Tokens), and other digital assets. This provision came into effect from July 1, 2022. Let&#8217;s delve into the essential requirements of this section.<\/p>\n<p><strong>What is a Virtual Digital Asset (VDA)?<\/strong><\/p>\n<p>As per Section 194S, a Virtual Digital Asset encompasses:<\/p>\n<ol>\n<li>Cryptocurrency \u2013 information, code, number, or token generated through cryptographic means.<\/li>\n<li>NFT \u2013 Non-Fungible Token or any token of similar nature.<\/li>\n<li>Any other digital asset notified by the central government in the official gazette.<\/li>\n<\/ol>\n<p><strong>Who Deducts TDS under Section 194S?<\/strong><\/p>\n<p>Any person, whether a resident or non-resident, responsible for paying a sum to a resident as consideration for the transfer of VDA must deduct TDS under Section 194S.<\/p>\n<p><strong>When to Deduct TDS?<\/strong><\/p>\n<p>TDS is to be deducted at the time of crediting the sum to the resident&#8217;s account or at the time of payment, whichever is earlier.<\/p>\n<p><strong>Rate of TDS Deduction:<\/strong><\/p>\n<p>TDS is deducted at a rate of 1% on the consideration amount. The GST component is excluded from consideration for TDS purposes.<\/p>\n<p><strong>Non-Applicability of Section 194S:<\/strong><\/p>\n<ol>\n<li>Not applicable if the payee is a non-resident.<\/li>\n<li>If the value or aggregate value of consideration does not exceed Rs. 10,000 during a financial year. The threshold for a specified person is Rs. 50,000.<\/li>\n<\/ol>\n<p><strong>Specified Person:<\/strong><\/p>\n<p>An individual or HUF without income from business or profession, or having income from business\/profession with gross receipts not exceeding Rs. 1 Crore in business or Rs. 50 Lakh in the case of a profession in the previous financial year.<\/p>\n<p><strong>Consideration in Kind or Partly in Cash and Partly in Kind:<\/strong><\/p>\n<p>If the consideration is wholly in kind or partly in cash and partly in kind, the person responsible for payment must ensure that TDS has been paid before releasing the consideration.<\/p>\n<p><strong>Due Date for TDS Deposit:<\/strong><\/p>\n<p>The due date for depositing TDS is the 7th from the end of the month in which TDS was deducted.<\/p>\n<p><strong>Different Cases for TDS Deduction:<\/strong><\/p>\n<ol>\n<li>\n<p><strong>Transaction not in kind:<\/strong><\/p>\n<ul>\n<li>Through an exchange: Exchange deducts TDS.<\/li>\n<li>Buyer is a broker: Broker deducts TDS.<\/li>\n<li>Seller is a broker, and the transaction is through an exchange: Exchange deducts TDS.<\/li>\n<li>Both broker and exchange involved: TDS by both or as per the agreement.<\/li>\n<\/ul>\n<\/li>\n<li>\n<p><strong>Transaction in kind:<\/strong><\/p>\n<ul>\n<li>Through an exchange: Both buyer and seller deduct TDS or as per the agreement.<\/li>\n<li>Seller is a broker, and the transaction is through an exchange: Both broker and buyer deduct TDS or as per the agreement.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p><strong>Other Points to Remember:<\/strong><\/p>\n<ol>\n<li>Section 194Q doesn&#8217;t apply if TDS is deducted under Section 194S.<\/li>\n<li>For FY 2022-23, VDA transfers from April 1, 2022, to June 30, 2022, are considered for the threshold value.<\/li>\n<li>Sections 203A and 206AB don&#8217;t apply to a specified person.<\/li>\n<\/ol>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/li>\n<\/ul>\n<\/figure>\n<\/div>\n<p><div class=\"wp-block-post-date\"><time datetime=\"2023-12-06T12:40:57+05:30\">6 December 2023<\/time><\/div><div class=\"wp-block-post-author\"><div class=\"wp-block-post-author__avatar\"><img alt='' src='https:\/\/secure.gravatar.com\/avatar\/5022b13facf0fd085ac80e8f9b743453a0f6fcedd6c9a2c43139a08621b8de13?s=48&#038;d=mm&#038;r=g' srcset='https:\/\/secure.gravatar.com\/avatar\/5022b13facf0fd085ac80e8f9b743453a0f6fcedd6c9a2c43139a08621b8de13?s=96&#038;d=mm&#038;r=g 2x' class='avatar avatar-48 photo' height='48' width='48' \/><\/div><div class=\"wp-block-post-author__content\"><p class=\"wp-block-post-author__name\">Himanshu sekhar<\/p><\/div><\/div><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>TDS ON TRANSFER OF VIRTUAL DIGITAL ASSETS (VDA) \u2013 SECTION 194S Understanding Section 194S: TDS on Transfer of Virtual Digital Assets (VDAs) Introduction: In the Budget 2022, the government introduced Section 194S to enforce TDS on the transfer of Virtual Digital Assets (VDAs), including cryptocurrency, NFTs (Non-Fungible Tokens), and other digital assets. This provision came [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5764,"comment_status":"closed","ping_status":"open","sticky":false,"template":"elementor_theme","format":"standard","meta":{"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"_joinchat":[],"footnotes":""},"categories":[416],"tags":[420,545,471],"class_list":["post-5972","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-income-tax","tag-income-tax","tag-section-194s","tag-tds"],"blocksy_meta":[],"jetpack_featured_media_url":"https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg","jetpack_sharing_enabled":true,"rttpg_featured_image_url":{"full":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",640,427,false],"landscape":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",640,427,false],"portraits":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",640,427,false],"thumbnail":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640-150x150.jpg",150,150,true],"medium":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640-300x200.jpg",300,200,true],"large":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",640,427,false],"1536x1536":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",640,427,false],"2048x2048":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",640,427,false],"woocommerce_archive_thumbnail":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",300,200,false],"woocommerce_thumbnail":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640-300x200.jpg",300,200,true],"woocommerce_single":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640-600x400.jpg",600,400,true],"woocommerce_gallery_thumbnail":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640-100x100.jpg",100,100,true]},"rttpg_author":{"display_name":"Himanshu sekhar","author_link":"https:\/\/simplemyfiling.com\/index.php\/author\/simplemyfilinggmail-com\/"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/simplemyfiling.com\/index.php\/category\/tax\/income-tax\/\" rel=\"category tag\">Income Tax<\/a>","rttpg_excerpt":"TDS ON TRANSFER OF VIRTUAL DIGITAL ASSETS (VDA) \u2013 SECTION 194S Understanding Section 194S: TDS on Transfer of Virtual Digital Assets (VDAs) Introduction: In the Budget 2022, the government introduced Section 194S to enforce TDS on the transfer of Virtual Digital Assets (VDAs), including cryptocurrency, NFTs (Non-Fungible Tokens), and other digital assets. This provision came&hellip;","_links":{"self":[{"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/posts\/5972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/comments?post=5972"}],"version-history":[{"count":4,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/posts\/5972\/revisions"}],"predecessor-version":[{"id":5976,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/posts\/5972\/revisions\/5976"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/media\/5764"}],"wp:attachment":[{"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/media?parent=5972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/categories?post=5972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/tags?post=5972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}