TDS on virtual digital asset transfers requires payers to deduct tax at payment or credit, with limited exemptions and compliance duties. Payers of consideration for transfer of a virtual digital asset must deduct tax at source equal to one per cent at the time of credit to the payee's account or at payment; where consideration is wholly or partly non-cash, payers must ensure required tax is paid before releasing consideration. Credits to suspense accounts are deemed credits to the payee. Exemptions apply for small-value transfers depending on whether the payer qualifies as a specified person, and binding guidelines may be issued to resolve implementation difficulties.