194S TDS Rates on Cryptocurrency and Digital Assets

| Last updated: 24 September 2025

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Section 194S of the Income Tax Act mandates Tax Deducted at Source (TDS) on the transfer of Virtual Digital Assets (VDAs), including cryptocurrencies and NFTs. A 1% TDS rate applies when paying a resident, with higher rates for non-residents or non-filers. Exemptions exist for small transactions, and specific procedures are outlined for depositing TDS and issuing certificates.

194S TDS is applicable on the payment for the transfer of Virtual Digital Assets (which include cryptocurrencies and non-fungible tokens). Who will be the Deductor and Deductee? DeductorDeducteeAny person who is responsible for paying to any resident any sum by way of consideration for the tr

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About the Author

Mitali

Finance Professional

I write about Income Tax, GST, TDS, RBI updates, government schemes, and personal finance in India. My focus is on simplifying complex tax and compliance topics into easy-to-understand guides that help readers stay updated with the latest financial rules, investment options, and regulatory changes.

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