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Section 194s of the Income-tax Act, 1961 was ushered in by the Finance Ministry, Government of India, under the Finance Act 2022 for imposing tds on the transfer of Virtual Digital Assets (VDAs). The hon’ble Finance Minister mentioned, in her Union Budget 2022 speech, about the enormity and prevalence of digital asset transactions as a strong reason for bringing such assets under the regulatory control of India. Accordingly, the 194s tds rules provide comprehensive specifications on the taxes to be deducted at source when digital assets are being transferred from one entity to another directly or through different intermediaries.

Let us deep dive into the key provisions, terminologies, exemptions, and scenarios described by section 194s with regards to the transfer of digital assets.

What is Section 194S of the Income-tax Act, 1961?

Section 194S of the Income-tax Act, 1961 stipulates guidelines on the taxability of digital assets when those assets are transferred directly between a buyer and a seller or through an exchange. Under Section 2 clause 47A of the Income-tax Act, the term “VDA'' can refer to any information, code, number, token (not an Indian or Foreign currency) created by cryptographic means (e.g. mining) or any other digital asset notified by the Central Government in the official gazette. Essentially, Section 194s views them as a universal set of digital characterization of value that can be traded, transferred, stored electronically, or used for payment. These differ from physical assets in a way that they are always exchanged electronically and their transfers may not be bound within a particular geographical boundary. The tds 194s guidelines do not officially recognize any digital asset.

Moreover, section 194s does not specifically mention further categorization of digital assets, but for the sake of understanding, these could be generally classified into cryptocurrencies and NFTs (non-fungible tokens). Now, the 194s tds section also does not refer to any particular exchanges or mediums through which the transfer of digital assets might take place. For simplifying things, the term “exchange” can be understood as any crypto exchanges in which digital assets are traded between a buyer and a seller.

Why is section 194s a significant step in taxation?

Section 194s brings all forms of digital assets including cryptocurrencies under India’s taxation framework. Cryptocurrencies have emerged as a digital currency of choice because of their advantages such as decentralisation, ease of accessibility, and alternative asset class for diversification. However, the convenience of digital assets in exchange and transfer are what make them difficult to be incorporated in a country’s regulatory framework. Since these currencies are exchanged or transferred electronically, it is difficult to map them within a particular national boundary. A particular digital asset transaction can hide, within itself, multiple layers of other transactions because of the anonymity offered. This complexity makes a taxation regime on digital assets difficult to implement. The anonymity offered by digital assets often make it difficult to recognise the sender and the receiver, and therefore, ascertaining tax liability could be a laborious task. Digital assets, by virtue of their anonymity, can be used to carry out several illegal activities - money laundering, terrorism funding, drug trafficking, human trafficking, etc. Since such assets operate on the world wide web, they are susceptible to cybersecurity risks. Because of the above issues directly concerning national security, governments have a strong incentive to regulate and track the exchange and transfer of digital assets. Therefore, introducing section 194s has been a key step towards bringing digital assets under the regulatory purview of the government of India.

Also Read: Maximizing Tax Savings: Understanding Sections 80C, 80D, and 80CCD

What does section 194s say about tds?

  • Guidelines:
  • The 194s tds section specifically mandates a 1% deduction on the entire amount as tax to be paid by a person who is paying the amount to an Indian tax resident in lieu of transfer of a digital asset. This tax deduction must be made when the amount is credited to the account of the resident seller or at the time of payment to the resident seller, whichever is earlier. With the introduction of section 194s, it is important to note that the burden of tds payment has been imposed on the buyer of the asset. If the Permanent Account Number (PAN) is not provided by the deductee or the seller of the asset, then the applicable tds rate would be 20%.

  • Exemptions:
  • Exemptions apply to a “specified person” if the overall value of the consideration through transfer of assets does not surpass fifty thousand rupees within a financial year. For persons other than a “specified person”, the limit of such transaction value is ten thousand rupees within a financial year. Also, if a payment gateway has been used to effectuate such a digital asset transfer, the payment gateway need not pay the tds provided that the person who has initiated the transfer has paid the required tds under section 194s.

Who is a specified person under section 194s?

For the purposes of 194s tds section, a “specified person” has been defined by the Finance Ministry as a person or a Hindu Undivided Family (HUF) who does not generate any proceeds under the bucket “income from profits and gains of business or profession”. Essentially, a “specified person” is an individual or an HUF who would be having an income under the head income from salaries, income from house property, income from capital gains, and income from other sources. For an individual or an HUF who has an income under the category “profit and gains of business or profession”, the total revenue/gross receipts/turnover must not exceed one crore rupees in a financial year. In the case of a profession, the amount should not surpass fifty lakh rupees. To determine the limits, the financial year immediately preceding the financial year of asset transfer will be applicable.

Scope for implementation of 194s tds section

Section 194s is only applicable when a digital asset is purchased from the Indian resident as defined under Income Tax rules. Therefore, the following could be the general arena where section 194s tds guidelines are applicable:

  • Trading in Indian Crypto Exchanges:
  • As notified by the Income Tax Department, TDS is liable to be deducted for any trading in Indian Crypto Exchanges (including peer-to-peer, i.e. P2P). Also, the particular exchange will be required to report such transactions to the Income Tax Department in an appropriate format.

  • Trading in International Exchange (Crypto to Crypto):
  • Since the general applicability of section 194s comes into the picture only when a digital asset has been bought from an Indian tax resident, it could be argued that transactions taking place in an international exchange are outside the ambit of 194s tds rules because the location of such an international exchange is outside Indian boundaries and therefore no income is realised in the Indian territory. Another case for buttressing the above argument would be that the net proceeds from the sale of such digital assets are not remitted back to India but held in cryptocurrencies and not in INR within a crypto wallet.

  • Trading in International Exchange (P2P):
  • If a digital asset is bought via P2P mode using INR, it is obvious that the seller is an Indian tax resident holding an Indian bank account. In such cases, the P2P exchange may not deduct TDS under section 194s guidelines. However, the buyer needs to collect the PAN (Permanent Account Number) of the seller and manually file a TDS return for the transaction.

What documents are required for reporting purposes under section 194s?

The Income Tax department has specified “Form 26QE” as the challan-cum-receipt to be filed by the buyer for reporting digital asset transactions and depositing the amount with the central government. Form 26QE has been introduced for specified persons. In case of digital asset transfers through exchanges and brokers, the applicable documentations are Form 26QF and Form 26Q. Form 26QE must be filed within 30 days of the end of the month of transaction when tax has been deducted, and forms 26Q and 26QF must be filed quarterly by the due dates mandated by the Income Tax department.

Also Read: Section 234B & 234C: Understanding Interest and Penalties on Advance Tax and Its Calculation

How should tds be deducted under the 194s tds section?

Section 194s goes to great lengths at demystifying the tds burden for associated entities involved in the transfer of digital assets. Such assets could be transferred through an exchange that may or may not involve a broker. On the other hand, they could be directly transferred between a buyer and seller which is called “Peer to Peer (P2P) transfer of digital assets”. It may also happen that the buyer pays for the acquired asset in cash or kind. Keeping in view the above scenarios, the Finance Ministry has issued circulars that clarify the mechanism of tds payment under section 194s. The 194s tds rules mention several scenarios for the process of transfer:

  • Scenario 1: Direct transfer between the buyer and the seller and payment is in cash
  • This scenario happens when the transfer of digital assets happens directly between the buyer and the seller. Also, the amount for such assets is paid in cash. In this scenario, the person responsible for the deduction under 194s tds section is the buyer. Also, the buyer needs to file either Form 26Q or Form 26QE.

  • Scenario 2: The transfer of assets takes place through an exchange and the asset is owned by a person other than an exchange
  • There are two possible cases in this scenario:

    • Case 1: When the exchange makes the payment directly to an owner of the asset and the broker is an owner/not an owner of the asset
    • When the broker is not an owner of the asset under consideration, the only entity which is responsible for deducting the tax and filing Form 26Q is the exchange. When the broker is an owner of the asset, the amount paid by the exchange to the broker (owner) will also be under the purview of tds under section 194s.

    • Case 2: When the exchange makes the payment to a owner of the asset through a broker (i.e. the broker is not the owner of the asset)
    • In this case, both the exchange and the broker are equally responsible for deducting the tax at source under section 194s tds rules. If the exchange and the broker have a written agreement that the broker alone shall be deducting the tds, then the burden of tax deduction lies on the broker. The broker has to file Form 26Q and the exchange has to file Form 26QF.

  • Scenario 3: The transfer of asset takes place through an exchange and the asset is owned by the exchange
  • This scenario again gives rise to the following two cases:
    • Case 1: When the buyer directly pays the exchange
    • Since there is no involvement of multiple intermediaries, the buyer is liable to deduct the tax. However, a practical situation could arise wherein the buyer does not know that the exchange, indeed, is an owner of the asset. In such cases, the exchange and the buyer can enter into a written agreement that the exchange shall pay the required taxes under section 194s after receipt of the payment. The exchange needs to file Form 26QF as well as ITR in such cases.

    • Case 2: When the buyer pays the exchange through a broker
    • In this case, it is clear that the payment is being made by the broker to the exchange and, therefore, under 194s tds section guidelines, the broker is required to pay the tax. Again, for the ease of regulatory compliance and removal of ambiguity from the mind of the broker regarding ownership of the digital asset, the broker and exchange can agree, in written, that the exchange will be paying the taxes after receipt of payment. As in the first case, the exchange needs to file Form 26QF as well as ITR.

  • Scenario 4: Transfer of the assets and the payment is in kind (not in cash):
  • This situation of digital asset transfer again involves two possible cases:
    • Case 1: The asset transfer does not happen through an exchange
    • In these cases, asset 1, owned by person 1 might be used as a form of payment for asset 2, owned by person 2. This indicates that both the persons are the buyer as well as the seller. Therefore, the payment in kind, will only be released by the buyer when the seller provides the proof for tax payment. Both the persons will have to file Form 26Q or Form 26QE under section 194s.

    • Case 2: The transfer of asset happens through an exchange
    • When an exchange is involved in the asset transfer that is paid for by another asset, it can enter into a written agreement with the buyer and seller, thereby exercising an alternative mechanism where the exchange will be liable to deduct taxes for both phases of the transaction. As always, Form 26Q has to be filed by the exchange.

What is the process of TDS deduction?

  • For a specified person, no TAN (Tax Deduction and Collection Account Number) is necessary under 194s tds section rules. Such Indian tax residents will need to login to the income Tax portal and select Form 26QE under E pay tax for filing their TDS return.
  • For entities other than specified persons having TAN, Form 26Q needs to be filled up for reporting transactions on which TDS is applicable under section 194s.
  • Exchanges need to report digital asset transactions in Form 26QF to Income Tax authorities on a quarterly basis.
  • The deductor of the tds issues a TDS certificate to the deductee on Form 16A for the transaction involving a digital asset. The deductee, while filing his Income Tax Return (ITR), can claim a credit for the tds paid.

Section 194s introduces a taxation framework aimed at tracking the transfer and exchange of digital assets. It represents the government’s commitment of creating a flexible, adaptive, and a transparent regulatory ecosystem. To know more about section 194s, please consult a tax professional.

Also Read: A Guide to Tax Saving Under Section 10 (10D) of Income Tax

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FAQS – FREQUENTLY ASKED QUESTIONS

  • What is TDS under section 194s ?

    The 194s tds guidelines define the tax deducted at source as payment to the central government while purchasing a digital asset either directly from a seller, through a broker, through an exchange, or through an exchange and a broker.
  • If a digital platform (e.g. payment gateway) A has been used to purchase the digital asset, is the digital platform liable to deduct tax under 194s tds section rules ?

    As per clarification from the Finance Ministry, the digital platform (e.g. payment gateway) is not required to deduct taxes if the buyer has already deducted the taxes. The digital platform might take an undertaking from the buyer that the required taxes have been deducted.
  • What is the date of implementation for section 194s of the Income-tax Act, 1961 ?

    The effective date of implementation for section 194s tds guidelines is 1st July 2022. Digital asset transactions (i.e. credits or payments) for FY 2022-23 before 1st July 2022 (i.e. from 1st April 2022 - 30th June 2022) will not count towards the overall transaction limits for tax deduction purposes.
  • When is the deadline to file Form 26QE ?

    Form 26QE must be filed within 30 days from the end of the month during which the asset transaction has taken place and tax has been deducted. E.g. If person C buys assets worth INR 4,50,000 from person D on 17th March 2023, person C must deduct 1% TDS on 17th March 2023. The month of March ends on 31st March, and therefore, person C has to file Form 26QE by 30th April 2023.
  • Is TAN and a collection account required under section 194s tds rules ?

    TAN (Tax Deduction and Collection Account Number) and a collection account is not required for deducting taxes under section 194s.
  • How to file Form 26QE/26Q/26QF after 194s tds deduction ?

    All the required forms can be filed online or downloaded from the official website of the Income Tax - https://www.incometax.gov.in/iec/foportal/.

 

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The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

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This Website is controlled and operated from India and there is no representation that the Materials/information are appropriate or will be available for use in other locations. If you use this Website from outside the India, you are entirely responsible for compliance with all applicable local laws. There is no warranty or representation that a user in one region may obtain the facilities of this website in another region.

Information published on the Website may contain references or cross references to products, programs and facilities offered by ABC Companies/third parties that are not announced or available in your country. Such references do not imply that it is intended to announce such products, programs or facilities in your country. You may consult your local advisors for information regarding the products, programs and services that may be available to you.

In your use of the Website, you may enter correspondence with, purchase goods and/or facilities from, or participate in promotions of advertisers or members or sponsors of the web site, including those of ABC Companies. Unless otherwise stated, any such correspondence, advertisement, purchase or promotion, including the delivery of and the payment for goods and/or facilities, and any other term, condition, warranty or representation associated with such correspondence, purchase or promotion, is solely between you and the applicable ABC Companies and/or third parties.

You agree that Facilities Provider / ABC Companies has no liability, obligation or responsibility for any such correspondence, purchase or promotion between you and any other ABC Companies and/or third parties.

Third party websites

This Website may be linked to other websites (including those of ABC Companies) on the World Wide Web that are not under the control of or maintained by ABCL. Such links do not indicate any responsibility or endorsement on our part for the external website concerned, its contents or the links displayed on it. These links are provided only as a convenience, in order to help you find relevant websites, facilities and/or products that may be of interest to you, quickly and easily. It is your responsibility to decide whether any facilities and/or products available through any of these websites are suitable for your purposes. The Facilities Provider or ABCL is not responsible for the owners or operators of these websites or for any goods or facilities they supply or for the content of their websites and does not give or enter into any conditions, warranties or other terms or representations in relation to any of these or accept any liability in relation to any of these (including any liability arising out of any claim that the content of any external web site to which this web site includes a link infringes the intellectual property rights of any third party).

USE of APP

In case any facilities/services, access/dissemination of information or execution of transaction is done through use of any APP related to ABC Companies, the additional terms and conditions governing the Use of APP shall be applicable and to be read along these Terms of Use.

Postings and monitoring

The Facilities Provider or ABCL or ABC Companies does not routinely monitor your postings to the Website but reserves the right to do so if deemed necessary if it is related to the facilities offered on the web site and to comply with law. However, in our efforts to promote good citizenship within the internet community, if the Facilities Provider or ABCL or ABC Companies becomes aware of inappropriate use of the Website or any of its facilities, any information, opinions, advice or offers posted by any person or entity logged in to the Website or any of its associated sites is to be construed as public conversation only, and the Facilities Provider or ABC Companies shall not be liable or responsible for such public conversation. You agree that in such cases, we will respond in any way that, in our sole discretion, as deemed appropriate. You acknowledge that Facilities Provider or ABC Companies will have the right to report to law enforcement authorities any actions that may be considered illegal, as well as any information it receives of such illegal conduct. When requested, ABC Companies/Facilities Provider will co-operate fully with law enforcement agencies in any investigation of alleged illegal activity on the internet.

Submissions and unauthorized use of any Materials contained on this Website may violate copyright laws, trademark laws, the laws of privacy and publicity, certain communications statutes and regulations and other applicable laws and regulations. You alone are responsible for your actions or the actions of any person using your user name and/or password. As such, you shall indemnify and hold Facilities Provider, ABCL / ABC Companies and its officers, directors, employees, affiliates, agents, licensors, and business partners harmless from and against any and all loss, costs, damages, liabilities, and expenses (including attorneys' fees) incurred in relation to, arising from, or for the purpose of avoiding, any claim or demand from a third party that your use of the Website or the use of the Website by any person using your user name and/or password (including without limitation your participation in the posting areas or your submissions) violates any applicable law or regulation, or the rights of any third party.

We reserve the right to terminate access to this Website at any time and without notice. Further this limited license terminates automatically, without notice to you, if you breach any of these Terms of Use. Upon termination, you must immediately destroy any downloaded and printed Materials.

If you come across any breaches/violation or offensive material you must report to us at abc.secretarial@adityabirla.com

Use of Cookies

You agree and understand that the Website will automatically receive and collect certain anonymous information in standard usage logs through the Web server, including computer/computer resource-identification information obtained from "cookies" sent to your browser from a web server or other means as explained in the Privacy Policy.  

Facilities Changes and Discontinuation

The Website reserves the right to discontinue or suspend, temporarily or permanently, the facilities. You agree that the Facilities Provider/ ABC Companies will not be liable to you in any manner whatsoever for any modification or discontinuance of the facilities. The format and content of this Website may change at any time. We may suspend the operation of this Website for support or maintenance work, in order to update the content or for any other reason.

ABCL, ABC Companies, and its directors, employees, associates, or other representatives shall not be liable for any damages or injury, arising out of or in connection with the use, or non-use including non-availability of the Website and also for any consequential loss or any damages caused because of non-performance of the system due to a computer virus, system failure, corruption of data, delay in operation or transmission, communication line failure, or any other reason whatsoever. The Website will not be responsible for any liability arising out of delay in providing any information on the Website.

Compliance with the Law

You agree that you will not:

  • Use any robot, spider, scraper, deep link or other similar automated data gathering or extraction tools, programme, algorithm or methodology to access, acquire, copy or monitor the Website, or any portion of the Website.
  • Use or attempt to use any engine, software, tool, agent, or other device or mechanism (including without limitation, browsers, spiders, robots, avatars or intelligent agents) to navigate or search the Website, other than the search engines generally available by third party web browsers
  • Post or transmit any file which contains viruses, worms, Trojan horses or any other contaminating or destructive features, or that otherwise interferes with the proper working of the Website or the facilities.
  • Attempt to decipher, decompile, disassemble, or reverse engineer any of the software, comprising or in any way making up a part of the Website or the facilities.
  • You agree not to use the facilities for illegal purposes or for the transmission of material that is unlawful, harassing, libelous (untrue and damaging to others), invasive of another's privacy, abusive, threatening, or obscene, or that infringes the rights of others.

Restrictions on Commercial Use or Resale

Your right to use the facilities is personal to you; therefore, you agree not to resell or make any commercial use of the facilities. In addition, the Website welcomes your feedback as a user of the facilities. Any feedback you provide will become the confidential and proprietary information of the Website, and you agree that the Website may use in any manner and without limitation, all comments, suggestions, complaints, and other feedback you provide relating to the Website. The Website shall have a worldwide, royalty-free, non-exclusive, perpetual, and irrevocable right to use feedback for any purpose, including but not limited to incorporation of such feedback into the Website or other Website software or facilities.

No Endorsements

All product and facilities marks contained on or associated with the facilities that are not the Website marks are the trademarks of their respective owners. The Website would require you to respect the same. References to any such names, marks, products or facilities of third parties or hypertext links to third party sites or information does not imply the Website’s endorsement, sponsorship or recommendation of the third party, information, product or facilities.

Promotional Offers

You may receive from time to time, announcement about offers with intent to promote this Website and/or facilities/products of ABC Companies (“Promotional Offers”). The Promotional Offer(s) would always be governed by these Terms of Use plus certain additional terms and conditions, if any prescribed. The said additional terms and conditions, if prescribed, would be specific to the corresponding Promotional Offer only and shall prevail over these Terms of Use, to the extent they may be in conflict with these Terms of Use. The Website reserves the right to withdraw, discontinue, modify, extend and suspend the Promotional Offer(s) and the terms governing it, at its sole discretion.

Charges for use of Website

There are no charges or fees to be paid by you for use of this Website. However, you are responsible for all telephone access fees and/or internet service fees that may be assessed by your telephone and/or internet service provider. You further agree to pay additional charges, if any levied by Third Party Service Provider(s), for the facilities provided by them through the Website (Additional Charges).

No Endorsement

You are advised to be cautious when browsing on the internet and to use good judgment and discretion when obtaining information or transmitting information. From this Website, users may visit or be directed to third party web sites. The Website makes no effort to review the content of these web sites, nor is the Website or its licensors responsible for the validity, legality, copyright compliance, or decency of the content contained in these sites.

In addition, the Website does not endorse or control the content of any other user and is not responsible or liable for any content, even though it could be unlawful, harassing, libelous, privacy invading, abusive, threatening, harmful, vulgar, obscene or otherwise objectionable, or that it infringes or may infringe upon the intellectual property or other rights of another. You acknowledge that the Website does not pre-screen content, but that the Website will have the right (but not the obligation) in their sole discretion to refuse, edit, move or remove any content that is available via the facilities.

Electronic Communications

These Terms of Use and any notices or other communications regarding the Facilities may be provided to you electronically, and you agree to receive communications from the Website in electronic form. Electronic communications may be posted on the Website and/or delivered to your registered email address, mobile phones etc either by Facilities Provider or ABC Companies with whom the services are availed. All communications in electronic format will be considered to be in "writing". Your consent to receive communications electronically is valid until you revoke your consent by notifying of your decision to do so. If you revoke your consent to receive communications electronically, the Facilities Provider shall have the right to terminate the facilities.

Assignment

You shall not assign your rights and obligations under this Agreement to any other party. The Website may assign or delegate its rights and/or obligations under this Agreement to any other party in future, directly or indirectly, or to an affiliated or group company.

Legal Disclaimers

The information provided on or through the Website is for general guidance and information purposes only and they do not in any manner indicate any assurance or opinion of any manner whatsoever. Any information may be prone to shortcomings, defects or inaccuracies due to technical reasons. Certain information on Website may be on the basis of our own appraisal of the applicable facts, law and regulations in force at the date hereof.

The information (and opinions, if any) contained on the Website may have been obtained from public sources believed to be reliable and numerous factors may affect the information provided, which may or may not have been taken into account. The information provided may therefore vary (significantly) from information obtained from other sources or other market participants. Any reference to past performance in the information should not be taken as an indication of future performance. The information is dependent on various assumptions, individual preferences and other factors and thus, results or analyses cannot be construed to be entirely accurate and may not be suitable for all categories of users. Hence, they should not be solely relied on when making investment decisions. Your investment or financial decision shall always be at your own discretion and based on your independent research; and nothing contained on the Website or in any information would construe ABCL/ABC Companies or any of its employees/authorized representative as having been in any way involved in your decision making process. Any information and commentaries provided on the Website are not meant to be an endorsement or offering of any stock or investment advice.

Nothing contained herein is to be construed as a recommendation to use any product, process, equipment or formulation, in conflict with any patent, or otherwise and Facilities Provider / ABCL/ABC Companies makes no representation or warranty, express or implied that, the use thereof will not infringe any patent, or otherwise. Information on this Website sourced from experts or third party service providers, which may also include reference to any ABCL Affiliate. However, any such information shall not be construed to represent that they belong or represent or are endorsed by the views of the Facilities Provider or ABC Companies. Any information provided or sourced from ABCL Affiliate belongs to them. ABCL is an independent entity and such information from any ABCL Affiliate are not in any manner intended or to be construed as being endorsed by ABCL or Facilities Provider. The information does not constitute investment or financial advice or advice to buy or sell, or to endorse or solicitation to buy or sell any securities or other financial instrument for any reason whatsoever. Nothing on the Website or information is intended to constitute legal, tax or investment advice, or an opinion regarding the appropriateness of any investment or a solicitation of any type. Investment in the securities market and any financial instruments are inherently risky and you shall always assume complete and full responsibility for the outcomes of all the financial or investment decisions that you make, including but not limited to loss of capital. You are therefore advised to obtain your own applicable legal, accounting, tax or other professional advice or facilities before taking or considering an investment or financial decision.

No Solicitation

No Information at this Website shall constitute an invitation to invest in ABCL or any ABC Companies. These are meant for general information only or to meet statutory requirements or disclosures. ABCL or any of its employees are in no way liable for the use of the information by you, when making any decision or investing or trading through any investment vehicles or ABC Companies, or any other third party which may be engaged in offering of these services.

The information contained on this Website does not represent and should not be used to construe (i) the terms on which a new transaction would be entered into by ABCL or ABC Companies, (ii) the terms on which any existing transactions could be unwound by ABCL or ABC Companies, (iii) the calculation or estimate of an  amount that would be payable following an early termination of any past/existing transactions or (iv) the valuations given to any transactions by ABCL or ABC Companies in their books of account for financial reporting, credit or risk management purposes.

Statutory Disclosure

ABCL and ABC Companies are engaged in a broad spectrum of activities in the financial services sectors. You understand and acknowledge that Aditya Birla Money Limited (‘ABML’), Aditya Birla Finance Limited (‘ABFL’) and Aditya Birla Sun Life Asset Management Company Limited and trustees and sponsor of Aditya Birla Sun Life Mutual Fund (‘ABSLMF’) are group companies and ABML / ABFL also acts as a distributor of ABSLMF.  Any recommendation or reference of schemes of ABSLMF if any made or referred on the Website, the same is based on the standard evaluation and selection process, which would apply uniformly for all mutual fund schemes. You are free to choose the execution facilities in the manner deemed fit and proper and no commission will be paid by ABSLMF to ABML / ABFL if you choose to execute a transaction with ABSLMF on the Website, unless otherwise agreed by you and ABML/ABFL separately. Information about ABML/ABFL, its businesses and the details of commission structure receivable from asset management companies to ABML/ABFL, are also available on their respective Website.

Similarly Aditya Birla Money Insurance Advisory Services Limited and Aditya Birla Insurance Brokers Limited are insurance intermediaries and engaged in the distribution of Insurance Products and it may services may include products of Aditya Birla Sun Life Insurance Company Limited and Aditya Birla Health Insurance Company Limited. However there is no conflict on these services and commissions if any payable are in accordance of the extant regulations.

Force Majeure

The Facilities Provider, ABC Companies and any of its Third Party Service Providers shall not be liable for any delay or failure in performance resulting directly or indirectly from acts of nature, forces, or causes beyond their reasonable control, including, without limitation, Internet failures, computer equipment failures, telecommunication equipment failures, other equipment failures, electrical power failures, strikes, virus, other malicious computer code, hacking, labour disputes, riots, insurrections, civil disturbances, shortages of labour or materials, fires, flood, storms, explosions, acts of God, war, earthquake, governmental actions, orders of domestic or foreign courts or tribunals, non-performance of third parties, or loss of or fluctuations in heat, light, or air conditioning.

Indemnification

You agree to protect and fully compensate Facilities Provider, ABCL, ABC Companies, subsidiaries, licensors, suppliers and facilities providers, employees, officers and directors, from any and all third party claims, liability, damages, expenses and costs (including but not limited to reasonable attorneys fees) caused by or arising from your use of the facilities, your violation of the Terms of Use or your infringement, or infringement by any other user of your account, of any intellectual property or other right of anyone.

No Waiver

The Facilities Provider, ABC Companies or any of its third party service providers and processor bank/merchants etc. shall not be deemed to have waived any of its/their rights or remedies hereunder, unless such waiver is in writing. No delay or omission on the part of Facilities Providers and ABC Companies, in exercising any rights or remedies shall operate as a waiver of such rights or remedies or any other rights or remedies. A waiver on any one occasion shall not be construed as a bar or waiver of any rights or remedies on future occasions.

Exclusive Agreement

You agree that these Terms of Use are the complete and exclusive statement of agreement supersede any proposal or prior agreement, oral or written, and any other communications between you and the Facilities Provider and its Third Party Service Providers or processor bank/merchants relating to the subject matter of these Terms of Use. These Terms of Use, as the same may be amended from time to time, will prevail over any subsequent oral communications between you and the Website and/or the processor bank.

Termination

Either party can terminate this Agreement by notifying the other party in writing. Upon such termination You will not be able to use the facilities of this Website.

Governing Law and Jurisdiction

The Website specifically prohibits you from usage of any of its facilities in any countries or jurisdictions that do not corroborate to all stipulations of these Terms of Use. The Website is specifically for users in the territory of India. In case of any dispute, either judicial or quasi-judicial, the same will be subject to the laws of India, with the courts in Mumbai having exclusive jurisdiction.

These Terms and Conditions are governed by and to be interpreted in accordance with laws of India, without regard to the choice or conflicts of law provisions of any jurisdiction. You agree, in the event of any dispute arising in relation to these Terms and Conditions or any dispute arising in relation to the Website whether in contract or tort or otherwise, to submit to the jurisdiction of the courts located at Mumbai, India for the resolution of all such disputes.

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