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Finance Minister Nirmala Sitharaman included Section 194S in Budget 2022 to apply TDS on the transfer of cryptocurrencies and other VDAs (Virtual Digital Assets). Section 194S takes effect on July 1, 2022, rather than April 1, 2022. To track the transactions of VDAs and cryptocurrency, the government imposed a 1% TDS deduction on VDA transfers if the aggregate value reaches INR 10,000 during the financial year in question. Particulars Section 194S TDS Rate 1% Threshold Limit No tax is deducted if the consideration is payable by anyone other than a specified person to a resident and the value or aggregate value of such consideration does not exceed Rs 10,000/- during the fiscal year. Non Applicability If the consideration is payable by a specified person to a resident and the value or aggregate value of such consideration does not exceed Rs 50,000/- during the fiscal year, no tax i...

SECTION 194R - DEDUCTION OF TAX ON BENEFIT OR PERQUISITE IN RESPECT OF BUSINESS OR PROFESSION   In the Finance Act 2022, a new TDS section 194R, has been inserted in the Income Tax Act, and which has been made applicable w.e.f. 1.7.2022. TDS @ 10% of the value of- Benefit or perquisites, whether given in Cash or Kind, to a Resident from Resident Provided that a resident individual who is given such benefits or perquisites which are wholly in kind or partly in kind, is responsible to pay TDS on value of such benefits before releasing it. Not required to deduct TDS if value of benefit or perquisite in a financial year does not exceed 20,000 rupees . Person not required to deduct TDS under this section- Individual or HUF, whose total sales, gross receipts or turnover does not exceed 1 Cr rupees in case of business or 50 Lakhs rupees in case of profession, during the financial year immediately preceding the financial year. Clarificatory Circular by CBDT The Apex body ...