How to pay and file TDS online on virtual Digital Assets I Section 194S Income Tax

By | February 27, 2023
(Last Updated On: February 27, 2023)

How to How to pay and file TDS online on virtual Digital Assets / virtual currency .

TDS on payment for transfer of virtual digital asset to a resident at the rate of 1% of such sum has been proposed in Finance Bill 2022. This is effective from 1st July 2022.

To make a TDS payment online, you need to visit and under the ‘Services’ section click on ‘e-payment Pay Taxes Online’. Then under the TDS/TCS section click on the ‘CHALLAN NO./ITNS 281’ option

Therafter you have to Select

  • Nature of Payment* : 94S Payment for Consideration for Transfer of Virtual Digital Assets
  • Choose Mode of Payment ( Net Banking or Debit Card)
  • Enter TAN number
  • Choose Assessment year
  • Enter Address
  • Fill up Captcha Code

How to file TDS online on virtual currency .

You need to file TDS return in Form 26QE  . Utility can  be downoaded from

Watch this video on TDS form 26QE and Form 16E for TDS on Virtual currency

How to issue TDS certificate for TDS deducted on Virtual Currency

You need to issue TDS certificate in Form 16E which can be downloaded from traces portal

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