{"id":30004,"date":"2025-09-25T01:23:09","date_gmt":"2025-09-24T19:53:09","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=30004"},"modified":"2025-09-25T01:46:45","modified_gmt":"2025-09-24T20:16:45","slug":"tds-rules-on-vdas-u-s-194s-of-the-income-tax-act-1961","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/tds-rules-on-vdas-u-s-194s-of-the-income-tax-act-1961\/","title":{"rendered":"TDS Rules on VDAs u\/s 194S of the Income Tax Act, 1961"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e85cb0251d9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e85cb0251d9\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/tds-rules-on-vdas-u-s-194s-of-the-income-tax-act-1961\/#TDS_Rules_on_Virtual_Digital_Assets_VDAs_us_194S_of_the_Income_Tax_Act_1961\" title=\"TDS Rules on Virtual Digital Assets (VDAs) u\/s 194S of the Income Tax Act, 1961,\">TDS Rules on Virtual Digital Assets (VDAs) u\/s 194S of the Income Tax Act, 1961,<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/tds-rules-on-vdas-u-s-194s-of-the-income-tax-act-1961\/#Crypto_Income_Tax_in_India_Post_July_1_2022\" title=\"Crypto &amp; Income Tax in India (Post July 1, 2022) : \">Crypto &amp; Income Tax in India (Post July 1, 2022) : <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/tds-rules-on-vdas-u-s-194s-of-the-income-tax-act-1961\/#Applicability_of_Section_194S\" title=\"Applicability of Section 194S : \">Applicability of Section 194S : <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/tds-rules-on-vdas-u-s-194s-of-the-income-tax-act-1961\/#Threshold_Limits_for_TDS_on_Virtual_Digital_Assets_Threshold_for_TDS_is\" title=\"Threshold Limits for TDS on Virtual Digital Assets : Threshold for TDS is\">Threshold Limits for TDS on Virtual Digital Assets : Threshold for TDS is<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/tds-rules-on-vdas-u-s-194s-of-the-income-tax-act-1961\/#Difference_between_TDS_30_tax_on_gains\" title=\"Difference between TDS &amp; 30% tax on gains : \">Difference between TDS &amp; 30% tax on gains : <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/tds-rules-on-vdas-u-s-194s-of-the-income-tax-act-1961\/#_When_and_Who_Deducts_TDS_on_Virtual_Digital_Assets\" title=\"\u00a0When and Who Deducts TDS on Virtual Digital Assets\">\u00a0When and Who Deducts TDS on Virtual Digital Assets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/tds-rules-on-vdas-u-s-194s-of-the-income-tax-act-1961\/#Special_Cases_in_case_of_Virtual_Digital_Assets\" title=\"Special Cases in case of Virtual Digital Assets\">Special Cases in case of Virtual Digital Assets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/tds-rules-on-vdas-u-s-194s-of-the-income-tax-act-1961\/#Virtual_Digital_Assets_-Reporting_Compliance\" title=\"Virtual Digital Assets -Reporting &amp; Compliance\">Virtual Digital Assets -Reporting &amp; Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/tds-rules-on-vdas-u-s-194s-of-the-income-tax-act-1961\/#Non-Compliance_Penalties_in_case_Virtual_Digital_Assets_non_compliance\" title=\"Non-Compliance Penalties in case Virtual Digital Assets non compliance \">Non-Compliance Penalties in case Virtual Digital Assets non compliance <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/tds-rules-on-vdas-u-s-194s-of-the-income-tax-act-1961\/#Recent_Updates_FY_2025%E2%80%9326_on_Virtual_Digital_Assets\" title=\"Recent Updates (FY 2025\u201326) on Virtual Digital Assets\">Recent Updates (FY 2025\u201326) on Virtual Digital Assets<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/tds-rules-on-vdas-u-s-194s-of-the-income-tax-act-1961\/#Crypto_transactions_and_ITR_returns_Line-wise_reporting_of_crypto_transactions_in_ITR_rather_than_cumulative_reporting\" title=\"Crypto transactions and ITR returns: Line-wise reporting of crypto transactions in ITR rather than cumulative reporting\">Crypto transactions and ITR returns: Line-wise reporting of crypto transactions in ITR rather than cumulative reporting<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/tds-rules-on-vdas-u-s-194s-of-the-income-tax-act-1961\/#_Correct_Taxable_Gain_Calculation-_Line-wise_reporting_of_crypto_transactions_in_ITR\" title=\"\u00a0Correct Taxable Gain Calculation- Line-wise reporting of crypto transactions in ITR\">\u00a0Correct Taxable Gain Calculation- Line-wise reporting of crypto transactions in ITR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/tds-rules-on-vdas-u-s-194s-of-the-income-tax-act-1961\/#_ITR_Reporting_Tips_for_crypto_transactions_in_ITR\" title=\"\u00a0ITR Reporting Tips for crypto transactions in ITR \">\u00a0ITR Reporting Tips for crypto transactions in ITR <\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-22057\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/Taxation-of-Virtual-Digital-Assets.png\" alt=\"Virtual-Digital-Assets\" width=\"1045\" height=\"439\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/Taxation-of-Virtual-Digital-Assets.png 800w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/Taxation-of-Virtual-Digital-Assets-300x126.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/Taxation-of-Virtual-Digital-Assets-768x323.png 768w\" sizes=\"(max-width: 1045px) 100vw, 1045px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"TDS_Rules_on_Virtual_Digital_Assets_VDAs_us_194S_of_the_Income_Tax_Act_1961\"><\/span><span style=\"color: #000080;\"><strong>TDS Rules on Virtual Digital Assets (VDAs)<\/strong> u\/s <strong>194S of the Income Tax Act, 1961<\/strong>,<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Crypto_Income_Tax_in_India_Post_July_1_2022\"><\/span><strong><span style=\"color: #000080;\">Crypto &amp; Income Tax in India (Post July 1, 2022) :<\/span> <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>TDS is Advance tax collected by exchanges like ZebPay on behalf of the Government. TDS deducted on On every sale or transfer of Virtual Digital Assets (VDAs) from July 1, 2022. &amp; TDS Rate: 1% of transaction value (Section 194S, IT Act). TDS on crypto transactions is mandatory as per Income Tax Act. For Example:<\/p>\n<p style=\"padding-left: 40px;\">Sell 1 BTC = INR 20,00,000<br \/>\nFees (0.5%) = INR 10,000<br \/>\nNet value = INR 19,90,000<br \/>\nTDS (1%) = INR 19,000<br \/>\nFinal amount = INR 19,71,000<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Applicability_of_Section_194S\"><\/span><span style=\"color: #000080;\"><strong>Applicability of Section 194S : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>From July 1, 2022, Cryptocurrencies, NFTs, and other digital assets notified by the government \u00a0and Rate of TDS on Virtual Digital Assets :<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>1% of the transaction value<\/li>\n<li>20% if PAN is not furnished<\/li>\n<\/ul>\n<\/li>\n<li>No TDS before 1 July 2022. But 30% tax applies on profits from 1 April 2022. Who deposits TDS i.e. Exchange (e.g., ZebPay) deposits to Government of India. &amp; same is Reflected in Form 26AS., TDS certificates provided by exchange.<\/li>\n<li>Why 5% TDS instead of 1% : If you haven\u2019t filed ITR for last 2 FYs \u2192 you fall under Section 206AB \u2192 TDS @ 5%.<\/li>\n<li>How to check TDS bracket (1% or 5%) : Verify your status on the Income Tax e-filing portal. Where is 1% TDS applicable?<\/li>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Sell Crypto-INR pairs<\/li>\n<li>Crypto-Crypto trades (since one coin is sold to buy another)<\/li>\n<li>Withdrawals to third-party accounts<\/li>\n<li>Not on buying Crypto-INR or INR deposits\/withdrawals<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-23369\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/VDA-1.jpg\" alt=\"Digital Currency &amp; Virtual Digital Assets\" width=\"918\" height=\"1280\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/VDA-1.jpg 918w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/VDA-1-215x300.jpg 215w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/VDA-1-734x1024.jpg 734w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/VDA-1-768x1071.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/03\/VDA-1-800x1115.jpg 800w\" sizes=\"(max-width: 918px) 100vw, 918px\" \/><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Threshold_Limits_for_TDS_on_Virtual_Digital_Assets_Threshold_for_TDS_is\"><\/span><span style=\"color: #000080;\"><strong>Threshold Limits for TDS on Virtual Digital Assets : Threshold for TDS is<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>INR 10,000 per year (normal users)<\/li>\n<li>50,000 per year (specified persons, like individuals with turnover below tax audit limit) However, exchanges deduct TDS on every trade. Refund\/adjustment possible in ITR.<\/li>\n<li>Specified Persons: TDS applies if aggregate value of transactions exceeds INR 50,000 in a financial year &amp; Others: TDS applies if aggregate value exceeds INR 10,000<\/li>\n<\/ul>\n<p><strong><span style=\"color: #000080;\">Specified Person includes:<\/span><\/strong><\/p>\n<ul>\n<li>Individuals\/HUFs with no business\/professional income<\/li>\n<li>In case Individuals\/HUFs with business turnover \u2264 INR 1 crore<\/li>\n<li>Individuals\/HUFs with professional receipts \u2264 INR 50 lakh<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Difference_between_TDS_30_tax_on_gains\"><\/span><span style=\"color: #000080;\"><strong>Difference between TDS &amp; 30% tax on gains : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>TDS (1%) \u2192 Deducted on each sale\/transfer. It\u2019s adjustable against final tax liability.<\/li>\n<li>Tax on gains (30% + surcharge + cess) \u2192 Payable on net profits at the time of filing ITR.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"_When_and_Who_Deducts_TDS_on_Virtual_Digital_Assets\"><\/span><strong>\u00a0<\/strong><span style=\"color: #000080;\"><strong>When and Who Deducts TDS on Virtual Digital Assets<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>TDS must be deducted at the time of payment or credit, whichever is earlier<\/li>\n<li>Buyer is responsible for deducting TDS in peer-to-peer transactions<\/li>\n<li>Exchange deducts TDS if transaction is routed through it<\/li>\n<li>In case of brokers, responsibility may be shared or delegated via agreement<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Special_Cases_in_case_of_Virtual_Digital_Assets\"><\/span><span style=\"color: #000080;\"><strong>Special Cases in case of Virtual Digital Assets<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Crypto-to-Crypto Trades: TDS applies on both legs of the transaction<\/li>\n<li>Transfers in Kind: TDS must be deducted and paid before releasing consideration<\/li>\n<li>No TAN Required: Specified persons are exempt from needing a TAN<\/li>\n<li>TDS on special cases<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Crypto Earn products: No TDS<\/li>\n<li>Airdrops: TDS applied only when sold<\/li>\n<li>Pending orders before July 1, 2022: Cancelled and need re-placement<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li>Can TDS be avoided or reduced?<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>No exemptions under Section 194S.<\/li>\n<li>Lower deduction certificates not valid here.<\/li>\n<li>Only exemption: if yearly transactions &lt; INR 10,000 (normal) \/ INR 50,000 (specified).<\/li>\n<li>Refund can be claimed while filing ITR.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li>How to claim TDS refund\/credit? : By Adjust against total tax liability or claim refund in ITR filing. Shown in Form 26AS.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Virtual_Digital_Assets_-Reporting_Compliance\"><\/span><span style=\"color: #000080;\"><strong>Virtual Digital Assets -Reporting &amp; Compliance<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Form 26Q: For general reporting<\/li>\n<li>Income tax Form 26QE: For specified persons<\/li>\n<li>Form 26QF: For exchanges reporting quarterly transactions<\/li>\n<li>Income Tax Form 16A: TDS certificate issued to deductee<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Non-Compliance_Penalties_in_case_Virtual_Digital_Assets_non_compliance\"><\/span><span style=\"color: #000080;\"><strong>Non-Compliance Penalties in case Virtual Digital Assets non compliance <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Penalty under Section 271C: Equal to the amount of tax not deducted<\/li>\n<li>Prosecution under Section 276B: Possible imprisonment and\/or fine<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Recent_Updates_FY_2025%E2%80%9326_on_Virtual_Digital_Assets\"><\/span><span style=\"color: #000080;\"><strong>Recent Updates (FY 2025\u201326) on Virtual Digital Assets<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Schedule VDA introduced in ITR forms for crypto reporting<\/li>\n<li>Exchanges must submit detailed reports to ensure compliance<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Crypto_transactions_and_ITR_returns_Line-wise_reporting_of_crypto_transactions_in_ITR_rather_than_cumulative_reporting\"><\/span><span style=\"color: #000080;\"><strong>Crypto transactions and ITR returns: Line-wise reporting of crypto transactions in ITR rather than cumulative reporting<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-30006\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/Crypto-Reporting-in-ITR.-.jpg\" alt=\"Crypto Reporting in ITR\" width=\"906\" height=\"940\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/Crypto-Reporting-in-ITR.-.jpg 831w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/Crypto-Reporting-in-ITR.--289x300.jpg 289w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/Crypto-Reporting-in-ITR.--768x797.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/Crypto-Reporting-in-ITR.--800x830.jpg 800w\" sizes=\"(max-width: 906px) 100vw, 906px\" \/><\/p>\n<p>Importance of line-wise reporting of crypto transactions in Income Tax Returns (ITR) rather than cumulative reporting.\u00a0<span style=\"color: #000080;\">Why Line-Wise Reporting Matters- Line-wise reporting of crypto transactions in ITR :\u00a0<\/span>Many taxpayers report crypto transactions cumulatively, which can lead to incorrect tax calculations. The infographic shows that each transaction should be reported individually to accurately compute the taxable gain or loss. <span style=\"color: #000080;\">Example Breakdown- Line-wise reporting of crypto transactions in ITR<\/span><\/p>\n<table>\n<thead>\n<tr>\n<td><strong>Crypto<\/strong><\/td>\n<td><strong>Date of Sale<\/strong><\/td>\n<td><strong>Date of Purchase<\/strong><\/td>\n<td><strong>Sale Consideration<\/strong><\/td>\n<td><strong>Cost of Acquisition (COA)<\/strong><\/td>\n<td><strong>Gain\/Loss<\/strong><\/td>\n<td><strong>Taxable Gain<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>A<\/td>\n<td>21-03-2025<\/td>\n<td>09-03-2025<\/td>\n<td>INR 11,000<\/td>\n<td>INR 10,000<\/td>\n<td>INR 1,000<\/td>\n<td>INR 1,000<\/td>\n<\/tr>\n<tr>\n<td>B<\/td>\n<td>23-12-2024<\/td>\n<td>25-01-2023<\/td>\n<td>INR 8,550<\/td>\n<td>INR 9,000<\/td>\n<td>-INR 450<\/td>\n<td>-INR 450<\/td>\n<\/tr>\n<tr>\n<td>C<\/td>\n<td>23-12-2024<\/td>\n<td>24-12-2023<\/td>\n<td>-INR 105,000<\/td>\n<td>-INR 100,000<\/td>\n<td>-INR 5,000<\/td>\n<td>-INR 5,000<\/td>\n<\/tr>\n<tr>\n<td>D<\/td>\n<td>25-07-2024<\/td>\n<td>27-01-2018<\/td>\n<td>INR 12,600<\/td>\n<td>INR 12,000<\/td>\n<td>INR 600<\/td>\n<td>INR 600<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"_Correct_Taxable_Gain_Calculation-_Line-wise_reporting_of_crypto_transactions_in_ITR\"><\/span><span style=\"color: #000080;\"><strong>\u00a0<\/strong><strong>Correct Taxable Gain Calculation- Line-wise reporting of crypto transactions in ITR<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Cumulative Gain (incorrect method): INR 1,000 &#8211; INR 450 &#8211; INR 5,000 + INR 600 = INR 6600<\/li>\n<li>Actual Taxable Gain (line-wise method): INR 1,000 + (-INR 450) + (-INR 5,000) + INR 600 = INR 7440<\/li>\n<\/ul>\n<p>This discrepancy arises because losses and gains must be treated individually, especially when considering short-term vs long-term capital gains, and set-off rules under the Income Tax Act.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"_ITR_Reporting_Tips_for_crypto_transactions_in_ITR\"><\/span><strong>\u00a0<\/strong><span style=\"color: #000080;\"><strong>ITR Reporting Tips for crypto transactions in ITR <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>Taxpayer must Report each transaction separately with Date of purchase and sale, Sale consideration, Cost of acquisition, Gain or loss<\/li>\n<li>Use appropriate ITR forms (usually ITR-2 or ITR-3 depending on your income sources).<\/li>\n<li>Maintain detailed records of all crypto trades.<\/li>\n<li>Classify gains correctly:\n<ul>\n<li>Short-term if held &lt; 36 months<\/li>\n<li>Long-term if held \u2265 36 months (though crypto is usually treated as short-term unless notified otherwise)<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<ol start=\"5\">\n<li><span style=\"color: #000080;\"><strong>Legal obligation- Bottom Line is crypto transactions reporting <\/strong><\/span><\/li>\n<\/ol>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>All Indian residents must comply \u2192 evading TDS is unlawful.<\/li>\n<li>Crypto decentralization \u2260 exemption from Indian tax laws.<\/li>\n<li>Every crypto sale\/transfer = 1% (or 5%) TDS.<\/li>\n<li>All profits = 30% tax (plus surcharge &amp; cess).<\/li>\n<li>File ITR to claim credit\/refund of deducted TDS.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>TDS Rules on Virtual Digital Assets (VDAs) u\/s 194S of the Income Tax Act, 1961, Crypto &amp; Income Tax in India (Post July 1, 2022) : TDS is Advance tax collected by exchanges like ZebPay on behalf of the Government. TDS deducted on On every sale or transfer of Virtual Digital Assets (VDAs) from July &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30004"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=30004"}],"version-history":[{"count":3,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30004\/revisions"}],"predecessor-version":[{"id":30009,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30004\/revisions\/30009"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=30004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=30004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=30004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}