Lost money on crypto? How to get your TDS refund
Made a loss on crypto but still had 1% TDS cut on every sale? A step-by-step checklist to claim the refund in your ITR, with what to do if TDS is missing.
- Checked against the rules: Sept 2026
- Sources cited · No buy or sell calls
- Tax year 2026–27
A losing year in crypto stings twice in India: you lose money on the trades, and 1% of every sale is held back as TDS. The good news is that the TDS isn't lost. Here's exactly how to get it back.
How much might you be owed?
Add up the TDS your exchanges deducted, then subtract the tax on any profitable trades (30% plus 4% cess). Losses don't reduce that tax, but they don't add to it either. Whatever TDS is left over is your refund. Use the TDS refund estimator to work it out in a minute.
Step 1: download your exchange tax reports
Every major Indian exchange offers an annual tax or P&L report showing each sale and the TDS deducted. Download it for every exchange you used.
Step 2: check your AIS and Form 26AS
On the income tax e-filing portal, open your Annual Information Statement (AIS) and Form 26AS. Each exchange should appear as a deductor, with the TDS against your PAN. Compare the totals with your exchange reports.
If TDS is missing or lower than expected: the exchange may not have filed its TDS return for that quarter yet, or may have filed it with an error. Contact its support with your PAN and the period. The exchange has to correct it; you can't add it yourself.
Step 3: choose ITR-2 or ITR-3
If you have no business income, it's usually ITR-2. Not sure? Use the ITR form chooser, or read ITR-2 or ITR-3 for crypto.
Step 4: report every trade in Schedule VDA
Enter each transfer with its dates, cost and sale value. For loss-making trades, enter zero as the income. It may feel pointless, but complete reporting keeps your return consistent with what exchanges report, which helps your refund go through smoothly. See the Schedule VDA guide.
Step 5: confirm the TDS is claimed
In the TDS schedule of your return, check that the crypto TDS from your AIS is listed. The portal often pre-fills it. If your total tax is lower than the TDS, the return will show a refund due.
Step 6: file, e-verify and track
Submit the return and e-verify it the same day if you can, using Aadhaar OTP or net banking. A return isn't processed until it's verified. Track the refund status on the portal; refunds go to a pre-validated bank account linked to your PAN.
Why refunds get stuck
- Bank account not pre-validated on the portal.
- Mismatch between your return and AIS, often from missing trades or wrong figures.
- Return not e-verified.
- Outstanding demands from earlier years, which can be set off against your refund.
Frequently asked questions
How long does it take?
Many refunds arrive within a few weeks of processing, but it varies. If yours is delayed, check the portal for messages before raising a grievance.
I missed the ITR deadline. Can I still get my TDS back?
You can file a belated return within the time allowed, usually until 31 December after the year ends. Late fees may apply. Rules can change each year, so check the portal.
Do I get TDS back on peer-to-peer trades?
Only if the buyer actually deducted and deposited it against your PAN, which rarely happens. Read more in crypto TDS explained.
Do I get TDS back if I only made losses?
Yes, if you file an ITR. With no gains there's no crypto tax, so the TDS deducted can be refunded.
TDS refund kaise milega crypto loss par?
ITR file karein, Schedule VDA mein trades dikhayein, aur AIS/26AS wala TDS claim karein. Refund aapke bank account mein aata hai.
Sources
Was this guide helpful?