Published 8 August 2026
4 min read
Written and maintained by the CryptoKar team
Glossary
Form 26AS and the AIS
Form 26AS and the Annual Information Statement are the department's own record of what was deducted and reported under your PAN. The 1% withheld on your crypto transfers is claimed against what appears there, not against what your exchange statement says.
Key highlights
Why the department's copy is the one that counts.
- 1%
Withheld from the sale value under Section 194S
An advance, not an extra tax
- 26AS
Credit is claimed against what was deposited
Not against an exchange report
- Read first
Check the AIS before you start the return
Disputes are easier before filing
How the Credit Works
The 1% is an advance against your liability rather than a second tax. It comes off the sale value at the moment of the transfer, reaches the government through the deductor, and is then set against the tax you compute on the gain. Where the deduction exceeds the liability, the difference is refundable.
The gap that catches people is timing and matching. A deduction shown on your exchange statement that never reached the government cannot be claimed, so the figure in Form 26AS is the one to work from.
Reading the AIS Before You File
The Annual Information Statement already carries transfers that exchanges reported under your PAN. Reading it first turns a possible notice into a routine check, because a figure you disagree with is far easier to handle before the return is filed than after.
From FY 2026-27 this matters more again. Section 509(1) of the Income Tax Act 2025 makes platforms file user level transaction statements, so the department's picture of your trading arrives independently of your return.
Frequently Asked Questions
The questions this term raises most often.
This page states the law and what CryptoKar computes from your trade history. It is not tax advice. Judgment calls belong with a chartered accountant. Sections and dates here were read against the source on 21 August 2026.
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