When you buy crypto directly from another person (person-to-person), you’re required to deduct 1% of the transaction value as TDS. For years, reporting this meant filing Form 26QE.
But the way it had to be filed added layers of repetition. Form 26QE followed a one-transaction-per-form approach. So, if you bought crypto or NFTs from three different people in a month, you had to fill out three separate forms and go through the TDS payments three separate times.
Happy to say, that’s finally beginning to change.
The Income Tax Act, 2025 aims to simplify the tax system as new forms were added whenever provisions changed. So, similar forms existed for slightly different taxpayers and people had to remember which form applies to whom.
So, instead of multiple Form 26QE submissions depending on the number of sellers involved, you will now use a single, simplified declaration: Form 141 for specified transactions, including VDA transactions.
Here’s what has changed and how Form 141 compares with the old 26QE Form.
Why Form 141 was introduced?
Over time, a new form was introduced each time a specific TDS rule was added. This led to a fragmented filing system where similar transactions such as paying high rent, buying property, hiring professionals or trading crypto required entirely different processes.
Form 141 streamlines this by consolidating multiple TDS reporting requirements into one filing framework. The form brings four key categories together under dedicated schedules in Part B:
- Schedule A – High-value rent: TDS on rent paid by individuals/HUFs not subject to tax audit
- Schedule B – Property purchases: TDS on the purchase of immovable property
- Schedule C – Contractor and professional payments: Payments for professional services or works contracts by individuals/HUFs not under tax audit
- Schedule D – Virtual Digital Assets (VDAs): TDS on transfers of crypto assets and NFTs
For VDA traders, Schedule D simplifies how transactions are reported for each sellers. It introduces transaction-wise structured reporting table. So, instead of filing multiple forms, you simply list every sellers involved in the transactions in one place.
Difference between Form 26QE and Form 141
To see how much easier your next crypto trade will be, here is a side-by-side comparison:
| Feature | Form 26QE | Form 141 |
|---|---|---|
| Applicability | Used only for TDS on virtual digital assets transfer (person-to-person) | Covers TDS on VDAs (Schedule D) along with other specified payments |
| Filing (multiple sellers) | Separate forms for each sellers | Single form for all sellers in the month |
| Tracking period | Based on Financial Year (FY) | Uses the Tax Year |
| Form structure | Standalone form for VDAs transfer | Consolidated form with dedicated schedules |
| Payment process | Separate challan payment for each form | One consolidated challan payment |
This makes TDS filing for crypto assets more streamlined and easier to manage.
How these changes will help you?
For reporting TDS on virtual digital assets, Form 141 will help you in two clear ways:
1) No more multiple forms
Whether you bought from one seller or ten, Form 141 covers your entire month’s person-to-person (P2P) activity.
2) One payment instead of many
Previously, every Form 26QE required a separate TDS payment for every trade. Now, you make a single consolidated TDS payment for that month.
3) Better tracking of trades
A single structured statement makes it easier to review all VDA transactions in one place at the time of return filing.
What this means for taxpayers?
Here’s what to keep in mind:
- Form 141 applies to VDA transactions from 1 April 2026 onward.
- You must file within 30 days from the end of the month in which TDS is deducted.
- The 1% TDS rate and the ₹50,000 annual threshold based on transactions with one person stays the same, only the reporting format has changed.
We’ve attached the draft version of Form 141 below so you can get a head start on what the new format looks like.
Draft Form 141.pdf (1.3 MB)
If you want a deeper understanding of Form 141, we got you covered: What is Form 141? TDS return for property, rent, and other specified payments