How to file Form 26QE for crypto TDS
Form 26QE is the challan-cum-statement a buyer without a TAN uses to deposit 1% crypto TDS under Section 194S. It is filed on the income tax e-filing portal within 30 days from the end of the month in which the deduction was made.
If you have deducted 1% on a P2P purchase, Form 26QE is how that money actually reaches the government and appears as credit against the seller's PAN. Skipping it means you have withheld money from a counterparty and kept it.
Who files it
The buyer — the person paying consideration for the virtual digital asset — where they do not hold a TAN. Businesses that already deduct TDS under a TAN follow their normal quarterly process instead.
Before you start
- Your PAN and the seller's PAN — an incorrect seller PAN means the credit lands nowhere.
- Date of the transfer and date of payment.
- Total consideration in INR.
- TDS amount — 1% of consideration.
- A bank account enabled for e-payment of taxes.
1% crypto TDS calculator (Section 194S)
On a P2P trade there is no exchange to deduct for you — the buyer deducts 1% and pays the seller 99%.
Informational only, not tax advice. Thresholds are per financial year, per counterparty. Confirm your own position with a qualified CA.
The steps
1Log in to the income tax e-filing portal
Use your own PAN credentials at incometax.gov.in.
2Open e-Pay Tax and choose Form 26QE
It sits with the other challan-cum-statement forms, alongside 26QB for property.
3Enter both PANs and the transaction details
Consideration, dates, and the 1% TDS. Check the seller's PAN character by character before continuing.
4Pay the TDS
Net banking or the available payment modes. Save the challan.
5Download the certificate and share it
The seller needs the deduction reflected against their PAN in order to claim credit. Send them the challan reference.
The deadline
If you file late
- Interest accrues on late deduction and on late deposit.
- A late-filing fee applies for each day of delay.
- The seller cannot claim credit until it is filed — which is usually how the omission gets discovered.
Order IDs, timestamps and counterparty details on every trade — the inputs 26QE asks for.
Start tradingFrequently asked questions
What is Form 26QE used for?
It is the challan-cum-statement for depositing 1% TDS on a virtual digital asset transfer under Section 194S, used by deductors who do not hold a TAN.
When is Form 26QE due?
Within 30 days from the end of the month in which the TDS was deducted.
What if the seller's PAN is wrong?
The credit will not appear against them and they cannot claim it. Correcting it after the fact is far more work than checking it before you submit.
- Form 26QE
- TDS
- compliance