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<h1>Virtual digital asset transfers require tax withholding under section 194S via Form 26QE challan by specified persons.</h1> Form No. 26QE is the challan-cum-statement by which specified persons deduct, deposit and report tax under Section 194S on transfers of virtual digital assets, capturing deductor and deductee identification, transaction details (date, total consideration, whether payment in kind or exchange of another virtual digital asset), withholding particulars (rate, amount deducted, dates of deduction and deposit), challan and bank particulars, payment composition (TDS creditable, interest, fee, total), mode of payment and the unique acknowledgement number.
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