Section 194S - Payment on transfer of virtual digital asset

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.