What is 1% TDS on Crypto in India?
In India, the government applies 1% Tax Deducted at Source (TDS) on every cryptocurrency transaction under Section 194S of the Income Tax Act.
This means whenever you trade, sell, swap, or spend crypto, the exchange or platform deducts 1% of the transaction value before crediting funds to you.
Important:
- TDS is not your final tax
- It is an advance tax record
- You can adjust it while filing Income Tax Return (ITR)
When is TDS deducted?
TDS applies to almost every crypto movement, not just profit trades.
You pay 1% TDS when you:
- Sell cryptocurrency
- Swap one crypto for another
- Pay using crypto
- Do P2P trades
- Convert crypto to INR
- Transfer via some exchanges (depending on platform)
Even if you make a loss — TDS still applies.
Example Calculation
If you sell crypto worth ₹50,000
TDS = 1% of ₹50,000
TDS deducted = ₹500
Amount you receive = ₹49,500
The deducted ₹500 will appear in your Form 26AS and can be claimed in ITR.
Can you claim refund of crypto TDS?
Yes.
Crypto TDS is adjustable against your total tax liability.
Cases:
If your total tax < deducted TDS
→ You get refund
If your total tax > deducted TDS
→ You pay remaining tax
So TDS is mainly a transaction tracking mechanism, not an extra tax.
Why use a Crypto TDS Calculator?
Manual calculation becomes confusing because:
- Multiple daily trades
- Different trade sizes
- P2P transactions
- Portfolio tracking
This calculator instantly shows:
- exact deduction
- actual receivable amount
Frequently Asked Questions
Is crypto TDS applicable on wallet to wallet transfer?
Usually no for private wallets, but exchanges may deduct depending on withdrawal structure and ownership verification.
Is TDS charged if I make a loss?
Yes. TDS depends on transaction value, not profit.
Can I avoid 1% TDS legally?
Not on Indian exchanges. It is mandatory under law.
Where can I check deducted TDS?
In Form 26AS or AIS statement in the Income Tax portal.