India tax
1% TDS on crypto, explained
What the 1% TDS on crypto sales in India is, when it applies, who deducts it and how to claim it back when you file.
Updated 18 Oct 2026 · 4 min read
What it is
When you sell or transfer crypto in India, 1% of the sale value is deducted as tax at source (TDS). It is not an extra tax: it is an advance payment that is credited against your total tax when you file your return.
TDS is charged on the sale value, not on your profit. So it is deducted even if you sold at a loss.
When it applies
TDS applies once your crypto sales in a financial year cross a threshold: ₹50,000 for specified persons (such as most individuals without business income above the audit limit) and ₹10,000 for others. Below the threshold, TDS isn't deducted.
Who deducts it
On Indian exchanges, the exchange usually deducts TDS automatically and deposits it with the government. In peer-to-peer trades, the buyer may be responsible for deducting it. The deducted amount should appear in your Form 26AS / Annual Information Statement.
Getting it back
When you file your return, the TDS already deducted is subtracted from the tax you owe. If more TDS was deducted than your total tax, for example because you sold at a loss, the excess can be refunded.
- Sold ₹1,50,000 of crypto with a ₹50,000 gain: tax ₹15,600, minus ₹1,500 TDS, leaves ₹14,100 to pay.
- Sold ₹1,50,000 of crypto at a loss: no tax due, so the ₹1,500 TDS can be refunded.
Frequently asked questions
Is TDS deducted if I sell at a loss?
Yes, because TDS is based on the sale value, not the profit. You can claim it back as a refund when you file your return.
Does TDS apply to foreign exchanges?
Indian tax rules still apply to Indian residents. If a foreign exchange doesn't deduct TDS, you may need to handle compliance yourself; ask a chartered accountant.
For education only — not financial or tax advice. Crypto is volatile and rules change; do your own research and consult a qualified professional.