If you trade crypto:
Take control now.
- Track every transaction
- Check AIS on Income Tax e-Filing Portal
- File TDS using Form 26QE
- Or use KoinX
Ignoring TDS is not delay.
It is non-compliance.
The real issue is not tax.
It is tracking.
Crypto activity creates:
- Exchange logs
- Bank trails
- Wallet transfers
If records are not maintained, filing becomes difficult.
Here is how TDS actually works in filing:
TDS deducted by Indian exchanges appears in Form 26AS and AIS
You claim it back in your ITR
Excess TDS becomes a refund.
Another misconception:
“I made losses, so TDS does not matter.”
Incorrect.
TDS applies to transactions, not profitability.
You can:
Be in loss
AND
Still have TDS compliance obligations
A lot of crypto investors think:
“If I don’t deal with TDS now,
I’ll handle it during ITR.”
That assumption can get expensive in India.
Here’s what actually happens if you ignore crypto TDS obligations 🧵
Ignore this?
Penalty is mandatory.
Under Section 271C,
100% of the TDS not deducted can be charged.
If TDS is deducted but not deposited,
Section 276B allows prosecution, with imprisonment up to 2 years plus fine.
Under Section 194S,
The buyer is legally required to:
- Deduct TDS
- Deposit it with the government
- File it using Form 26QE within 30 days of month-end
There is no platform exemption.
Now the critical part:
If you trade on:
- Foreign exchanges
- P2P
- Decentralized platforms
TDS is usually not deducted automatically.
That does not remove the obligation.
TDS is calculated on the total transaction value.
Not profit.
Example:
You sell crypto worth ₹2,00,000
TDS = ₹2,000
Even if your profit is low or negative.
First, clarity:
TDS is not the same as crypto tax.
In India:
30% tax under Section 115BBH is on gains
1% TDS under Section 194S is on transactions
Different purpose.
Different calculation.
Different consequences.
@Octop3s Crypto transactions that carry swaps, conversions, staking, rewards, etc are counted as taxable events in some regions. So, that bcomes taxable
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