How to File Form 141 — Schedule D
TDS on Transfer of Virtual Digital Assets
A complete walkthrough for buyers deducting TDS under Section 393(1) [Table Sl. No. 8(vi)] on purchase of cryptocurrency, NFTs, and other virtual digital assets — with special coverage of cash vs in-kind transactions.
Schedule D is one of the most widely misunderstood TDS provisions in India. Every person who purchases a Virtual Digital Asset (VDA) from a resident seller must deduct TDS at 1% of the consideration — regardless of the amount. There is no minimum threshold unlike the other three schedules.
The term “Virtual Digital Asset” covers a broad range of digital assets:
The first question in Schedule D is the type of transaction — Cash or In Kind / In Exchange of another VDA. Getting this right determines whether a separate tax deposit is required before filing. This is the most critical and frequently misunderstood aspect of this schedule.
Consideration in Cash (or Part Cash where cash is sufficient)
Select this when consideration is wholly in cash, OR when it is partly cash and partly in kind but the cash portion is sufficient to cover the full TDS liability.
In this case, you can deduct TDS from the cash portion and deposit it simultaneously at the time of filing Form 141.
Consideration in Kind or Part Cash Insufficient for TDS
Select this when consideration is wholly in kind (e.g., one crypto swapped for another), OR when partly cash but the cash component is NOT sufficient to cover the TDS liability.
In this case, you must pay the TDS amount separately before releasing the VDA to the seller and then report that pre-paid tax in Schedule D.
| What You Need | Details |
|---|---|
| PAN of the buyer | Your own PAN — used for login. MANDATORY |
| PAN of the seller | Resident seller’s PAN. Without a valid PAN, TDS credit won’t reach the seller. MANDATORY |
| Transaction type decision | Determine whether the transaction is Cash or In Kind before starting — see Section 2 above. |
| Date of VDA transfer | Exact date on which the VDA was transferred/sold. |
| Total value of consideration | Full value of the VDA transaction — either the INR cash amount or the INR equivalent of the in-kind consideration. |
| Pre-paid TDS details (In Kind only) | For in-kind transactions: BSR code, date of payment, and challan serial number of the separately paid TDS amount. IN KIND ONLY |
Steps 1 through 5 are identical for all four schedules. If you’ve already read another guide in this series, skip to Section 5.
Form 141 selected — Corporate/Non-Corporate popup
| Field | Source / Action |
|---|---|
| Residential Status, PAN, Name, Address, Contact, Email | Auto-populated from profile. AUTO |
| Tax Year | Select e.g. 2026-27. SELECT |
| Month of Deduction | Month in which the VDA transfer took place and TDS was/should have been deducted. SELECT |
| Nature of Transaction | Select Schedule D — Transfer of Virtual Digital Asset and click Continue. SELECT |
Schedule D — Cash vs In Kind/In Exchange selection with portal note visible
| Field | Notes |
|---|---|
| PAN of seller | Resident seller’s PAN. Name auto-populates. MANDATORY |
| Contact number | Seller’s mobile number. MANDATORY |
| Field | Notes |
|---|---|
| Date of Transfer of VDA | The date on which the VDA was transferred from seller to buyer. MANDATORY |
| Total Value of Consideration | Full transaction value in INR. For cash: the rupee amount paid. For in-kind: the INR equivalent of the VDA or asset received as consideration. MANDATORY |
| Amount Paid / Credited | The actual amount paid or credited in this transaction. MANDATORY |
| Date of Payment / Credit | Date on which payment or credit was made to the seller. MANDATORY |
| Amount on which TDS is Deductible | Typically the same as the total consideration. TDS = 1% of this amount. MANDATORY |
| Certificate u/s 395(1) | If the seller has a lower/nil deduction certificate, select Yes and enter the certificate number. Otherwise, No. |
| Rate of TDS | 1% standard rate. SELECT |
| TDS Amount | Auto-calculated as Consideration × 1%. AUTO-CALCULATED |
| Date of Deduction | Date TDS was deducted. MANDATORY |
| Field | Notes |
|---|---|
| Amount of Tax Paid (in cash) | The TDS amount paid separately via challan before releasing the VDA. IN KIND ONLY |
| BSR Code of Bank | BSR code of the bank branch where the separate TDS payment was made. IN KIND ONLY |
| Date on which Tax Deposited | Date the separate TDS challan payment was made — must be before the VDA transfer date. IN KIND ONLY |
| Challan Serial Number | Serial number of the challan used for the separate TDS payment. IN KIND ONLY |
Schedule D — In-Kind section showing BSR code, date, and challan fields
| Field | Notes |
|---|---|
| TDS Amount | Auto-calculated. AUTO |
| Interest | Under Section 398(3)(a). Applies if TDS was not deducted or deposited on time — especially relevant for in-kind transactions where TDS payment was delayed. |
| Late Filing Fee | Under Section 427 for filing after the 30-day deadline from month-end. |
Click Continue after completing Schedule D. You are redirected to the payment screen. For cash transactions, TDS is paid here simultaneously. For in-kind transactions, TDS was already paid separately — this step deposits any interest or late fees if applicable.
On successful payment, a CIN and ARN are generated. Download the challan-cum-statement immediately.
Payment confirmed — CIN and ARN generated
📥 Downloading Form No. 132 — The TDS Certificate for the Seller
After filing, download Form No. 132 (the TDS certificate replacing erstwhile Form 16E) from TRACES and issue it to the VDA seller within 15 days from the due date of filing Form 141.
New to TRACES or need to set up your account? Read our full guide: TRACES Portal Revamped — How to Register and Use It.