Tax deduction on virtual digital asset transfers requires payer to withhold tax at time of payment or credit.

Any payer of consideration for transfer of a virtual digital asset must deduct tax at source at the time of credit or payment; where consideration is in kind or cash is insufficient, the payer must ensure tax is paid before release. Exemptions apply for transfers below prescribed low-value thresholds for specified persons and others. Credits to suspense or similar accounts are treated as payee credit for deduction purposes. Where other withholding provisions also apply, this provision prevails. The Board may issue binding guidelines, subject to Central Government approval, to resolve implementation difficulties.

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