Calculate crypto TDS in India using the 1% VDA TDS rate and applicable ₹50,000 or ₹10,000 annual threshold. Check Section 194S and Section 393 rules for 2026, including PAN-based TDS rates.
The Section 194S Crypto / VDA TDS Calculator calculates crypto TDS in India on a VDA transfer to a resident. Check the 1% rate, ₹50,000 or ₹10,000 annual threshold, and the higher rate when PAN isn't furnished. For transfers from 1 April 2026, the familiar Section 194S provision is mapped to Section 393(1), Table Sl. No. 8(vi), Income-tax Act, 2025. Income Tax Department — Section 393
If you're searching for a crypto TDS calculator India, add earlier VDA consideration from the same tax year before checking the threshold.
A VDA TDS calculator works out TDS on consideration paid for a VDA transfer. Crypto buyers, Individual/HUF payers, businesses, exchanges, traders, CAs and finance teams can use it.
The standard 1% crypto TDS rate applies when the annual threshold is exceeded. The threshold is ₹50,000 for a qualifying specified Individual/HUF payer and ₹10,000 for other payers.
Section 194S remains the common search term for crypto TDS. For transfers from 1 April 2026, use the corresponding Section 393(1) provision under the Income-tax Act, 2025. Toolisky's VDA Tax Under the New Income Tax Act 2025 explains the section changes.
For a resident VDA deductee, calculate the annual consideration first:
Annual VDA consideration
= Previous VDA consideration during the tax year
+ Current VDA consideration
Then identify the applicable threshold:
Qualifying specified Individual/HUF = ₹50,000
Other payer = ₹10,000
The result follows this decision:
If annual consideration does not exceed the applicable threshold:
TDS = ₹0
If annual consideration exceeds the applicable threshold:
TDS = Current VDA consideration × applicable TDS rate
Standard VDA TDS rate = 1%
PAN not furnished = 20% higher rate
Section 393(1), Table Sl. No. 8(vi), specifies the 1% rate for consideration for transfer of a VDA. The threshold rules determine when no deduction is required.
A qualifying specified Individual/HUF includes an Individual or HUF whose preceding-year business turnover does not exceed ₹1 crore, whose professional receipts do not exceed ₹50 lakh, or who has no income under the head “Profits and gains of business or profession.”
Once the applicable aggregate exceeds the threshold, don't calculate 1% only on the excess. The TDS calculation applies to the relevant VDA consideration.
If the deductee does not furnish a valid PAN, the higher-rate provision applies. The current TDS guidance places VDA transfers at 20% where PAN isn't furnished.
The Income Tax Department states that deduction is made at the earlier of payment or credit to the resident's account.
For the separate tax on your crypto gains, use Toolisky's Crypto Tax Calculator India. That tool covers the VDA gain calculation and TDS credit, so it is the natural next step after checking the TDS deducted from a transaction.
Priya is a qualifying Individual/HUF payer. During Tax Year 2026-27, she buys cryptocurrency worth ₹60,000 from a resident seller. She has made no earlier VDA payments during the year, and the seller has furnished a valid PAN.
Previous consideration = ₹0
Current consideration = ₹60,000
Annual consideration
= ₹0 + ₹60,000
= ₹60,000
Applicable threshold = ₹50,000
₹60,000 > ₹50,000
The annual threshold is exceeded.
VDA TDS
= ₹60,000 × 1%
= ₹600
Priya therefore deducts ₹600.
Now take Ramesh. He is also a qualifying specified Individual/HUF payer. He has already made VDA purchases worth ₹20,000 during the tax year and makes another purchase worth ₹25,000.
Previous consideration = ₹20,000
Current consideration = ₹25,000
Annual consideration
= ₹20,000 + ₹25,000
= ₹45,000
₹45,000 does not exceed the ₹50,000 threshold. The VDA TDS result is therefore nil.
The calculation changes when the aggregate crosses the limit. Suppose Ramesh later makes another ₹10,000 purchase. His aggregate consideration then becomes ₹55,000, so the threshold condition is met for that transaction.
If you're also working out the final tax on the crypto gain, don't confuse TDS with the final VDA tax. Toolisky's Crypto Tax Calculator handles that separate calculation.
The tool calculates TDS, not the seller's final tax on VDA gains. For that separate calculation, use Toolisky's Crypto Tax Calculator India.
For transfers from 1 April 2026, the Income-tax Act, 2025 applies. The familiar Section 194S crypto TDS rule is now placed under Section 393(1), Table Sl. No. 8(vi). The standard VDA TDS rate remains 1%. Income Tax Department — Section 393
The annual no-TDS thresholds remain ₹50,000 for a qualifying specified Individual/HUF and ₹10,000 for other payers. The threshold is based on the aggregate consideration during the tax year. Income Tax Department — threshold limits
The familiar search terms Section 194S TDS, 1% crypto TDS, and crypto TDS 2026 still refer to the same underlying VDA withholding rule for many taxpayers. The section number changes for transactions governed by the new Act; the 1% rate does not. Toolisky's Crypto Tax India 2026 guide explains the old-versus-new Act timing in more detail.
PAN status also matters. The Income Tax Department's TDS material states that the higher rate is 20% when PAN isn't provided for the VDA transaction. Income Tax Department — TDS guidance
The payment route also matters. In an OTC transaction, the buyer deducts TDS; an exchange processing the payment can handle the deduction. Income Tax Department — TDS guidance
For the wider VDA tax rules, see Toolisky's VDA Tax Under the New Income Tax Act 2025.
The standard crypto TDS rate is 1% of the relevant VDA consideration when the applicable annual threshold is exceeded. A higher 20% rate can apply when the deductee does not furnish a valid PAN. The ₹50,000 and ₹10,000 thresholds depend on the payer category.
The annual threshold is ₹50,000 for a qualifying specified Individual/HUF and ₹10,000 for other payers. The calculation uses aggregate consideration during the tax year. If the applicable aggregate does not exceed the threshold, no VDA TDS is required under this provision.
No. ₹50,000 is the threshold used to determine whether TDS applies to a qualifying specified Individual/HUF payer. Once the applicable aggregate exceeds the threshold, the TDS calculation applies to the relevant VDA consideration. You don't calculate 1% only on the excess above ₹50,000.
A higher TDS rate applies when the deductee does not furnish a valid PAN. The Income Tax Department's current TDS guidance states a 20% rate for the VDA case. Entering “PAN not furnished” in this calculator therefore changes the rate from the standard 1% to 20%.
A VDA transfer can involve consideration paid in cash, in kind, or partly in cash and partly in kind. The TDS rules also cover exchanges of VDAs. Where the cash component isn't enough to cover the TDS on the whole transfer, the person responsible for deduction must ensure that the required tax is paid before releasing the consideration.
For transactions governed by the Income-tax Act, 2025 from 1 April 2026, the VDA TDS provision is Section 393(1), Table Sl. No. 8(vi). Section 194S is the corresponding reference under the Income-tax Act, 1961. The rate remains 1%.
Calculations verified by our team including CA Anita Patil. View our full accuracy policy and meet the team →
For informational purposes only. Results are estimates based on the inputs you provide and the rules in effect for the period shown, and are not tax, legal or financial advice. Verify figures against the relevant official source and consult a qualified professional before acting on them. Accuracy & limitations
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