With the Income-tax Act, 2025 now in full effect, the way we report TDS has changed. The Income Tax Department has replaced multiple TDS forms (like 26QB, 26QC, 26QD and 26QE) with a single integrated Form 141.
The Income Tax Portal has also been redesigned to align with the new Act, therefore it’s important to understand the updated filing process. Form 141 is divided into four schedules. In this thread, we’re focusing specifically on Schedule D, which applies to TDS on the transfer of Virtual Digital Assets (VDA) like Crypto and NFTs.
Who needs to file Form 141 (Schedule D)?
You must file this if you are the buyer (deductor) of a crypto asset and the transaction is not routed through a compliant Indian Exchange (e.g., P2P trades or using foreign exchanges).
In such cases, TDS applies when you buy crypto with INR, or when you swap one crypto for another (where both parties may need to deduct TDS).
There’s also the transaction requirement that:
- A flat 1% should be deducted from the total sale value of crypto (VDA) transfers.
- TDS is applicable only if total payments in a tax year exceed:
→ ₹50,000 for specified persons (individuals/HUFs not liable for tax audit)
→ ₹10,000 for others
Also, you must file Form 141 and pay the tax within 30 days from the end of the month in which the TDS was deducted. For example: If you bought crypto on April 15th, you have until May 30th to complete the filing.
Before we dive into the filing steps, you might want to check out What is Form 141? TDS return for property, rent, and other specified payments to understand the basics, or check this Form 141 vs. Form 26QE comparison to see what’s changed.
Here’s how to get started with filing TDS on crypto transactions using Form 141:
1. Log in to the Income Tax e-filing portal
2. Navigate to e-File > e-Pay Tax
3. Select Income-tax Act, 2025 > Continue
4. Click on New Payment button to initiate the TDS reporting process
5. Select the Form 141 tile > Proceed
6. Now, choose your Deductee Type based on the seller you are buying crypto from > Continue
Select Corporate deductee if the seller is a company.
Select Non-Corporate deductee if the seller is an individual or a partnership firm.
Note: You can include multiple deductees in a single Form only if they all have the same deductee type. So if you are paying both a company and an individual, you must file two separate Form 141s.
7. Here you’ll see that your basic details will be pre-filled. Now you need to specify:
- Transaction Year: Select the tax year in which the crypto was purchased.
- Month of Deduction: The month the transaction was executed.
- Nature of Transaction: Select Schedule D: TDS on payment made by individual/HUF on transfer of Virtual Digital Asset (VDA) from the dropdown menu > Continue
8. Select the Type of Transaction in Part B of the form.
In this section, you must categorize how the crypto was paid for, as this is an important step which determines how you’ll settle the tax.
Select Cash if:
→ The consideration is paid wholly in cash (INR).
→ The transaction is partly in cash and partly in kind, but the cash portion is large enough to cover the 1% TDS for the total value
Select In Kind/In Exchange of another VDA if:
→ The consideration is wholly in kind (e.g., swapping BTC for ETH).
→ The transaction is partly in cash and partly in kind, but the cash portion is not sufficient to meet the total TDS liability.
8A) If you’re selecting Cash, click + Add Details to add the Transaction Details
8B) After adding the details, you will proceed to the Tax Deposit Summary > Review and Continue to proceed with the TDS payment.
OR
8C) If your settlement is In Kind/In Exchange, click + Add Details to add the Transaction Details
8D) After adding the details, you will proceed to the Preview of the Transaction Detail summary > Continue
8E) Now you’ll be required to E-Verify the Form 141
9. Select your preferred payment mode (Net Banking, UPI, or Debit Card) and pay the TDS
Next, carefully preview the details of the entire form and complete the payment.
Once the payment is successful:
- A Challan Receipt will be generated. You must download and save it, as it includes your BSR Code, Date of Payment, and Challan Serial Number as proof of payment.
- Since this is an integrated form, the portal will also generate a Form 141 Acknowledgement. Also save this for future reference, especially for any corrections.
After 4–5 working days, log in to the TRACES portal to download Form 132 (TDS Certificate). You are required to provide this certificate to the transferor within 15 days from the due date of the form, as it serves as their proof of tax deposited.
Got questions or stuck at any step? Drop them below, we’ll help you out!