Section 194S TDS

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This discussion clarifies how to report TDS deducted under Section 194S, which relates to the transfer of Virtual Digital Assets (VDAs) like cryptocurrency. The TDS amount shown in Form 26AS represents the sale value. Taxpayers can declare this income under either the Capital Gains or Income from Other Sources head in their tax return, with Capital Gains being the default option. You will need to provide transaction details in the VDA schedule and account for purchase costs to determine the final gain or loss.

Suraj

Suraj (Querist)
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26 July 2023 Dear Sir / Madam,

Form 26AS of Mr A shows income of Rs. 36773/- and TDS there on of Rs. 367.73/- u/s 194S.
I understand that this TDS u/s 194S pertains to the transfer of Cryptocurrency or other VDAs.

However, I don't understand how should I show this in his Income Tax return? what kind of this income is? Capital gain or other sources or something else? which additional documents are to be asked for?

Please guide me in this.
Regards,
Suraj

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 July 2023 You have to give details of transaction in schedule VDA.
There the option is available to declare it in CG head or IFOS. Choose any one and declare it in that head, though default is Capital Gains.

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Suraj

Suraj (Querist)
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26 July 2023 Achcha Sir. It means the amount Rs. 36773/- shown in Form 26AS is the sale value on which TDS is deducted... and then we have to show the purchase cost against it, and thus result would be either gain or loss.. is it so sir???