Section 194S requires tax deduction at source when resident individuals transfer virtual digital assets (VDA) such as cryptocurrency, subject to thresholds and rules for exchanges versus peer-to-peer transactions.
Who deducts TDS
- Exchanges may deduct on trades as per notified framework
- Buyers in P2P transfers when payment exceeds threshold
- Deposit TDS and report in quarterly statements
- Seller claims credit in ITR against Form 26AS
Read VDA tax in ITR guide, AIS reconciliation, and personal tax filing.
