The 60-second version
Section 194BA requires 1% TDS on payment for transfer of VDAs when consideration exceeds ₹50,000 — exchange or buyer deducts, seller claims 26AS credit in ITR.
194BA is 1% on VDA transfer — 30% tax is separate under 115BBH
Section 194BA applies when any person pays consideration for transfer of virtual digital assets above ₹50,000 — exchange deducts 1% TDS.
VDA gains taxed at 30% under Section 115BBH — 194BA TDS is advance credit only.
Deep dive: VDA tax cluster guide.
VDA tax stack
| Rule | Rate | When |
|---|---|---|
| 194BA TDS | 1% | Transfer > ₹50k |
| 115BBH tax | 30% | VDA gains in ITR |
| 194S (legacy) | 1% | Pre-194BA window |
| Schedule FA | Disclose | Foreign exchange wallets |
194BA sequence
Sell VDA
On Indian exchange.
1% TDS
Exchange deducts.
26AS
Verify credit.
ITR
Declare gain at 30%.
AIS match
Reconcile mismatch.
Flow
194BA kit
- Trade stmt.
- TDS cert.
- 26AS.
- AIS.
- ITR ACK.
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Foreign exchange
US Coinbase/Kraken sales are foreign — Schedule FA + FBAR, not 194BA.
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0 of 4 checked
P2P sale?
Buyer deducts 194BA if resident buyer above threshold.
US crypto?
Not 194BA — foreign asset reporting.
Loss offset?
No — 115BBH blocks loss set-off.
RNOR?
VDA taxed in India from resident date.
NFT?
VDA definition includes notified NFTs.
Refund?
If TDS exceeds 30% tax due — ITR refund.
Your tax year is already running.
RNOR status, exit timing, and DTAA benefits all depend on decisions you make before you land. Don't guess.