What is Crypto TDS in India? A Simple Guide for 2026
If you've traded crypto in India, you've seen the 1% TDS deducted on every transaction. But what exactly is it, how does it work, and can you claim it back? Here's a clear breakdown.
What is Crypto TDS?
Since July 1, 2022, Section 194S of the Income Tax Act requires a 1% Tax Deducted at Source (TDS) on all cryptocurrency transactions exceeding ₹10,000 per year (₹50,000 for specified persons). This applies to every sell, swap, or transfer of Virtual Digital Assets (VDAs).
How TDS Works on Giottus
When you sell crypto on Giottus, the platform automatically deducts 1% TDS from the transaction value and deposits it with the government on your behalf. You don't need to do anything — it's handled automatically.
Example: You sell 0.1 BTC worth ₹5,00,000. Giottus deducts ₹5,000 as TDS. You receive ₹4,95,000 (minus trading fees).
Can You Claim TDS Back?
Yes. The TDS appears as a tax credit in your Form 26AS. When you file your ITR, this TDS is adjusted against your total tax liability. If your total tax is less than the TDS deducted, you get a refund.
Key Points to Remember
- TDS is not an additional tax — it's an advance collection of your income tax
- You can track all TDS deductions in your Giottus account under Tax Reports
- FIU-IND registered exchanges like Giottus ensure compliant TDS deduction
- Always file your ITR to claim the TDS credit
Bottom Line
Crypto TDS is straightforward once you understand it. Trade on an FIU-IND registered platform like Giottus, and your TDS compliance is handled automatically. Focus on trading — we handle the tax paperwork.
Have questions about crypto taxes? Visit giottus.com or reach out to our support team.
Originally published on Giottus Blog
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