Explain the provisions relating to deduction of tax at source on payment of Transfer of Virtual Digital Assets u/s 194S and exception thereon under the Income Tax Act, 1961.

As per section 194S - Any person responsible for paying to any resident any sum by way of consideration for transfer of a virtual digital assets, TDS is to be deducted either, at the time of credit of any sum by way of consideration to the account of the resident or at the time of payment of such sum by any mode whichever is earlier @ 1% of consideration amount. Exception - No tax shall be deducted under this provision in the following circumstance: If the consideration is payable by any person (other than a specified person) and its aggregate value does not exceed ₹ 10,000 during the financial year. If the consideration is payable by a specified person and its aggregate value does not exceed ₹ 50,000 during the financial year. Specified person means: An individual or a HUF, whose total sales, gross receipts or turnover does not exceed ₹ 1 crore in case of business or ₹ 50 lakhs in case of a profession, during the financial year immediately preceding the financial year in which virtual digital asset is transferred. An individual or a HUF who does not have any income under the head profits and gains of business or profession.