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Direct Tax

CBDT issues guidelines for the removal of difficulties in theCentral Government specifies the meaning of NFT

Notification S.O. 2959(E) [No. 75/2022/F. NO. 370142/29/2022-Tpl (Part-I)] dated 30 June 2022

• In light of powers conferred by clause (a) of Explanation to clause (47A) of Section 2 of the Income-tax Act, 1961, Central Government provided the meaning of Non–fungible token (NFT).
• NFT is a token that qualifies to be a virtual digital asset as a non-fungible token within the meaning of sub-clause (a) of clause (47A) of Section 2 of the Act but shall not include a non-fungible token whose transfer results in the transfer of ownership of the underlying tangible asset and the transfer of ownership of a such underlying tangible asset is legally enforceable.

CBDT has specified certain Forms, returns, statements, reports, and orders to be furnished electronically

Notification No. 03/2022 F. No. DGIT(S)-ADG(S)-3/e-Fling Notification/Forms/2022/3813 dated 16 July 2022

• In exercise of the powers conferred under sub-rule (1) and sub-rule (2) of Rule 131 of the Income-tax Rules, 1962 (the Rules), the Director General of Income-tax (Systems), with the approval of the Board, hereby specifies that the following Forms, returns, statements, reports, orders, by whatever name called, shall be furnished electronically and shall be verified in the manner prescribed under sub-rule (1) of Rule 131 namely 3CEF, 10F, 101A, 3BB, etc.

CBDT announces Form 26QF in relation to Section 194S

Notification G.S.R. 482(E) [No. 73/2022/F. No. 370142/29/2022- Tpl (Part-I)], dated 30 June 2022 as corrected by Notification G.S.R. 505(E) [No. 77/2022/F.No. 370142/29/2022-Tpl (Part-I)] dated 1 July 2022

• In accordance with the guidelines issued under sub-section (6) of Section 194S, where the Exchange has agreed to pay tax in relation to a transaction of transfer of a virtual digital asset owned by it as an alternative to the 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 Income-tax (Systems) or the person authorized by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax.