Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 04 JULY 2022

CBDT Clarifies TDS Mechanism For P2P (Peer-To-Peer) VDA Transactions

Khaitan & Co.
Khaitan & Co.
Contributor
Khaitan & Co.

Khaitan & Co.

Founded in 1911, Khaitan & Co is a heritage law firm that has been a trusted adviser to leading...

View firm profile
Explore more from Khaitan & Co.

The Finance Act, 2022 (FA 2022) amended the Income-tax Act, 1961 (IT Act) by introducing a new taxation regime in relation to Virtual Digital Assets (VDAs) wherein:

IndiaTax
Raghav Bajaj
Raghav Bajaj
Author LinkedIn connections

The Finance Act, 2022 (FA 2022) amended the Income-tax Act, 1961 (IT Act) by introducing a new taxation regime in relation to Virtual Digital Assets (VDAs) wherein: (i) a 30% tax has been levied on income from transfer of VDAs in the hands of the transferor; (ii) receipt of VDAs for nil or inadequate consideration has been made taxable in the hands of the recipient; and (iii) an obligation has been imposed (under Section 194S of the IT Act) on the persons responsible for paying any consideration to 'Indian residents' for transfer of VDAs to deduct tax at source (TDS) at 1% (with effect from 1 July 2022). Our Ergo on budget 2022 proposals can be accessed here.

With respect to implementation of the 1% TDS obligation in relation to VDA transactions undertaken on exchanges (exchange has been defined to mean any person that operates an application or platform for transferring of VDAs, which matches buy and sell trades and executes the same on its application or

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this document does not necessarily reflect the views / position of Khaitan & Co but remain solely those of the author(s). For any further queries or follow up, please contact Khaitan & Co at [email protected].

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Direct Tax Newsletter - Sep - Oct 2026

The CBDT, through its press release dated 28 September 2026, has extended the due date for furnishing the Return of Income for Assessment Year 2026-27 in the case of persons covered under the specified category in the table to Explanation 2 to section 139(1) of the Income-tax Act, 1961, i.e. persons whose accounts are subject to audit under the Act. The original due date for furnishing the return was 31 October 2026. The CBDT has extended this date by 21 days, and the revised due date is 21 November 2026.
IndiaTax
King, Stubb & Kasiva
King, Stubb & Kasiva
Article

Ministry Of Labour And Employment Operationalises The Provisions On Payment Of Statutory Bonus

On 25 August 2026, the Ministry of Labour and Employment issued two notifications (Notifications) under the Code on Wages, 2019 (Wage Code), thereby operationalising specified provisions relating to payment of statutory bonus for establishments for which the appropriate government is the Central Government. The Wage Code consolidates the legislative framework governing wages and related employee entitlements, including the regime previously governed by the Payment of Bonus Act, 1965.
IndiaEmployment and HR
Khaitan & Co.
Khaitan & Co.
Article

Punjab And Haryana High Court Strikes Down JAO - FAO Retrospective Amendment As Unconstitutional

The Hon’ble Punjab and Haryana High Court (HC) in Jyoti Sareen vs. UOI & Others (CWP No. 15791-2024 (O&M)) (Order) held the retrospective amendments carried out vide the Finance Act, 2026, with respect to the powers of the Jurisdictional Assessing Officer (JAO) to issue a reopening notice under section 148 (Reopening Notice) of the Income-tax Act, 1961 (IT Act), as unconstitutional, being violative of the ‘doctrine of separation of powers’ and thus violative of Article 14 of the Constitution of India.
IndiaGovernment, Public Sector
Khaitan & Co.
Khaitan & Co.
Article

Supreme Court Clarifies Applicability Of SARFAESI Remedies For A Secured Creditor Who Acquires An NPA From A Non-notified NBFC

In Kotak Mahindra Bank Limited v Trupti Sanjay Mehta and Others, 2026 INSC 943 (Kotak Mahindra), the Hon’ble Supreme Court of India considered whether a bank as defined under Section 2(1)(c) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) could invoke the provisions of the SARFAESI Act to recover a secured debt acquired from an entity which was not covered under the ambit of the SARFAESI Act at the time of disbursement of the loan.
IndiaFinance and Banking
Khaitan & Co.
Khaitan & Co.
Article

DOT Notifies Telecom Network Authorisation Rules, 2026: What Has Changed?

On 20 July 2026, the Department of Telecommunications (DoT) notified the Telecommunications (Authorisation for Telecommunication Network) Rules, 2026 (Rules). The Rules operationalise Section 3(1)(b) of the Telecommunications Act, 2023 and establish a framework for six categories of telecommunication network authorisations: infrastructure provider (IP) (formerly, IP-I), digital connectivity infrastructure provider (DCIP), internet exchange point (IXP) provider, satellite earth station gateway (SESG) provider, cloud-hosted telecommunication network (CTN) provider and mobile number portability (MNP) provider.
IndiaMedia, Telecoms, IT, Entertainment
Khaitan & Co.
Khaitan & Co.