Form 142 Income Tax Rules 2026 pdf download and Key points

Last Updated on: April 21, 2026

Form 142 Income Tax Rules 2026 pdf download and Key points

FORM NO. 142
[See rule 219(2)]
Quarterly statement of tax deposited in relation to transfer of virtual digital asset under section
393(1) [ Table: S. No. 8(vi)] to be furnished by an Exchange for the quarter ending …….
June/September/December/March of Tax Year

Under the Income-tax Rules, 2026, Form No. 142 replaces the erstwhile Form 26QF. It is governed by Section 393(1) [Table: Sl. No. 8(vi)] of the Income-tax Act, 2025, and Rules 217(2), 217(3), and 219.
Here are all the comprehensive key points regarding Form No. 142 based on the provided rules:

1. Purpose of the Form Form 142 is a PAN-based quarterly statement used to report the tax deducted at source (TDS) and deposited in relation to the transfer of Virtual Digital Assets (VDAs), such as cryptocurrency and NFTs. It enables the Income-tax Department to verify compliance with the 1% TDS obligation on VDA transfers.

2. Applicability (Who Should File) Filing this form is strictly mandatory for Virtual Digital Asset (VDA) Exchanges (e.g., crypto exchanges) that:
- Facilitate the buying and selling of VDAs.
- Have formally agreed (as per guidelines in Circular No. 13/2022) to deposit tax on behalf of the buyers or brokers, acting as an alternative to the buyer deducting the tax themselves.
3. Transactions Reported The form covers VDA transfers where the exchange has deposited tax, specifically including:
- Purchase of crypto assets.
- Exchange of one VDA for another.
- Transactions settled partly or fully in kind.
- Any other transaction falling under the definition of “transfer of VDA”.
4. Frequency and Due Dates Form 142 must be furnished quarterly (four times a tax year). The strict due dates are:
- Quarter 1 (April – June): Due by 31st July of the financial year.
- Quarter 2 (July – September): Due by 31st October of the financial year.
- Quarter 3 (October – December): Due by 31st January of the financial year.
- Quarter 4 (January – March): Due by 31st May of the financial year immediately following the tax year.
5. Structure and Contents of the Form The form is structurally divided to capture transaction-level data and tax payment linkages:
- Part A (Exchange Details): Name, Address, PAN, Contact details, Tax Year, and Quarter.
- Part B (Buyer/Broker Details): PAN, Name, and Address of the buyer or broker.
- Part C (Transaction Details): Date of transaction, Name of the VDA, Value and Number of VDAs bought, and Total consideration.
- Part D (Tax Payment Details): Amount of tax deposited (calculated as 1% of total consideration), Date of tax payment, and Challan details (BSR Code, Challan serial number, Amount paid).
- Part E (Non-Deduction Information): Records of transactions where tax was not deducted, which includes transactions explicitly exempt from TDS under section 400(2) of the Act.
6. Mode of Filing and Prerequisites
- Electronic Filing Only: It must be filed digitally via the Income Tax e-Filing portal. No physical documents need to be attached.
- Mandatory PAN: The exchange cannot file the form without a valid PAN. Quoting the Buyer’s/Broker’s PAN is also mandatory; if unavailable, specific reporting guidelines (like mentioning ‘PANNOTAVBL’) must be followed to avoid rejection.
- Tax Deposit Details: Tax payments should be made using Challan ITNS-280 under minor head ‘Advance Tax (100)’ or ‘Self-Assessment Tax (300)’. All tax must be fully deposited before filing; partial payments will invalidate the statement.
7. Key Compliance Rules and Processing Outcomes
- No Editing: Once Form 142 is submitted and an acknowledgment is generated, it cannot be edited or modified.
- Relation to Regular TDS Returns: Form 142 is a standalone requirement with no linkage to Form No. 140 (the regular non-salary TDS return). An exchange can file both if applicable, ensuring there is no overlap in the reported transactions.
- System Outcomes: After processing, the system generates a default summary under section 399, and shares details of transactions where tax was not deducted with the INSIGHT and CPC-ITR portals for backend verification and risk profiling.

Form 142 Income Tax Rules 2026 pdf download and Key points

Form 142 Income Tax Rules 2026 pdf download and Key points

Form 142 Income Tax Rules 2026 pdf download

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Form No.142– Frequently Asked Questions

Guidance Note on Form 142