Tax & Compliance1 min read

The ₹50,000 crypto TDS threshold, explained

The threshold is ₹50,000 in a financial year for an individual or HUF without a tax audit requirement, and ₹10,000 for everyone else. It is cumulative across the year, not per trade — once total consideration crosses it, TDS applies.

The threshold is widely misread as 'trades under ₹50,000 are exempt'. It is not a per-trade exemption. It is an annual running total.

Which limit applies

CategoryLimit
Individual or HUF with no business/professional income requiring audit₹50,000 per financial year
Any other person, including businesses₹10,000 per financial year

Cumulative, not per trade

Five trades of ₹15,000 each total ₹75,000. The threshold is crossed, and TDS applies — splitting an amount into smaller trades does not avoid it.

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%.

Threshold crossed?Limit is ₹50,000 per financial yearNo — no TDS due
TDS at 1%₹0.00
Seller receives₹50,000.00

Informational only, not tax advice. Thresholds are per financial year, per counterparty. Confirm your own position with a qualified CA.

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Frequently asked questions

Is the ₹50,000 TDS threshold per trade or per year?

Per financial year, cumulative. Once your total consideration crosses it, TDS applies.

Which threshold applies to a salaried individual?

₹50,000, provided there is no business or professional income requiring a tax audit.

  • TDS
  • thresholds
  • 194S

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