Crypto Tax Refund In ITR 2026: Don't Miss These Steps To Claim Your Money
Indian crypto investors are advised to verify their Tax Deducted at Source (TDS) reports against government portals to claim potential refunds. Experts clarify that TDS is an advance tax mechanism rather than an additional tax, and discrepancies should be resolved with exchanges.
Why it matters
As crypto tax regulations tighten, understanding the mechanics of TDS is essential for investors to avoid overpayment and ensure compliance.
Many crypto investors only realise how much tax has been deducted from their trades when they sit down to file their income tax returns.Since July 2022, every sale or transfer of cryptocurrencies and other virtual digital assets (VDAs) on Indian exchanges has attracted a 1 per cent Tax Deducted at Source (TDS) under Section 194S of the Income Tax Act. Over dozens (or even hundreds) of trades -- that amount can add up quickly.The good news is that if your total tax liability is lower than the TDS already deducted, you can claim the excess back while filing your Income Tax Return (ITR). But that refund won't come automatically.
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