Income Tax Form 142: Quarterly Compliance Statement for VDA Transactions

Form No. 142 is a mandatory PAN-based quarterly statement required to be filed electronically by Virtual Digital Asset (VDA) Exchanges under section 393(1) [Table: Sl. No. 8(vi)] of the Income-tax Act, 2025. It applies to exchanges that have agreed to deposit tax on behalf of buyers or brokers for transactions involving transfer of VDAs such as cryptocurrencies or NFTs. The form captures detailed information including exchange particulars, buyer or broker details, transaction-level data, and tax payment details, along with reporting of transactions where tax was not deducted under specified exemptions. It must be filed four times annually within prescribed due dates for each quarter, and cannot be revised after submission. Filing is permitted only after full tax payment with complete challan details. The form ensures compliance with the 1% TDS obligation on VDA transfers and promotes transparency and proper tax reporting.

Income Tax Department
Ministry of Finance, Government of India

FAQs on Income Tax Form 142 (replaces 26QF): Quarterly statement of tax deposited in relation to transfer of virtual digital asset under section 393(1) of the Income-tax Act, 2025 furnished by an Exchange

Quarterly statement of tax deposited in relation to transfer of virtual digital asset under section 393(1) [Table: Sl. No. 8(vi)] of the Income-tax Act, 2025 furnished by an Exchange

Q1. What is Form No. 142?

Ans: Form No. 142 is PAN based quarterly form, prescribed under Rule 217 (2) and (3) for furnishing a quarterly statement filed by Virtual Digital Asset (VDA) Exchanges that

• Facilitate buying and selling of VDAs (e.g., crypto exchanges), and
• Have agreed to deposit tax on behalf of buyers or brokers under section 393(1) [Table: Sl. No. 8(vi)].

This form must be filed electronically on the Income-tax e-Filing portal.

Q2. Who should file Form No. 142?

Ans: Form No. 142 must be filed by any ‘Exchange’ (who has agreed in accordance with guidelines issued in Circular no. 13/2022 dt. 22.06.2022 to pay tax on transaction of transfer of VDA owned by it as an alternative to tax required to be deducted by the buyer of such asset u/s 393(1) [Table: Sl. No. 8(vi)].

Q3. Which transactions are reported in Form No. 142?

Ans: Form No. 142 covers VDA transactions where the exchange has deposited tax, including:

• Purchase of crypto assets
• Exchange of one VDA for another
• Transactions settled partly or fully in kind
• Any transaction falling under “transfer of VDA”

Q4. Is Form No. 142 mandatory?

Ans: Yes. Form No. 142 is mandatory for exchanges referred in FAQ no. 2 above, reporting VDA transactions where TDS was required to be deducted under section 393(1) [Table: Sl. No. 8(vi)].

Q5.What is the time limit for filing Form No. 142?

Ans: Form No. 142 must be furnished quarterly for the tax year as follows:

Q6. How many times can Form No. 142 be filed in a year?

Ans: Form No. 142 is filed quarterly, requiring four filings per Tax Year, one for each quarter (April-June, July-September, October-December, January-March). Each covers all

relevant VDA transactions in that period, including nil statements if applicable.

Q7. What information is reported in Form No. 142?

Ans: The following information is reported in Form No. 142:

> A. Exchange Details

• • Name and Address
  • PAN
  • Tax Year and Quarter

> B. Buyer / Broker Details

• • PAN
  • Name
  • Address

> C. Transaction Details

Form No. 142 (Earlier Form No. 26QF)

• • Date of transaction
  • Name of VDA
  • Value of VDA bought
  • Number of VDA bought
  • Total consideration

> D. Tax Payment Details

• • Amount of tax deposited
• Challan details:

v’ BSR Code

v’ Challan serial number

v’ Date of deposit

> E. Non-Deduction Information

• • Transactions where tax was not deducted
  • Records of transactions exempt from TDS under section 400(2)

Q8. What documents/details are required to file Form No. 142?

Ans: No physical documents are attached; all data is entered digitally via the e-filing portal. Required details include:

• Buyer/broker details (Name, Address, PAN).
• Transaction-level VDA data (Date, Value of VDA bought, Number of VDAs bought, total consideration).
• TDS computation sheets (1% of total consideration).
• Ledger records showing consideration amounts and VDA quantities.
• Challans and BSR codes for TDS deposits (use Challan ITNS-280 under minor head ‘Advance Tax (100)’ or ‘Self-Assessment Tax (300)’).

Q9. Can I file Form No. 142 after filing a regular TDS return (Form 140)?

Ans: Yes, but separately. Form No. 142 is filed by any ‘Exchange’ (who has agreed in accordance with guidelines issued in Circular no. 13/2022 dt. 22.06.2022 to pay tax on transaction of transfer of VDA owned by it as an alternative to tax required to be deducted by the buyer of such asset u/s 393(1) [Table: Sl. No. 8(vi)]. Form No. 142 has no linkage to Form No. 140. File both if applicable, ensuring no overlap in reporting.

Q10. Can I edit Form No. 142 after submission?

Ans: No. Once submitted and acknowledgment is received, edits are not permitted.

Q11. Do I need to attach proof of tax payment?

Ans: Enter following challan details in Part B for validation:

• BSR code,
• Date of tax payment,
• Challan Serial Number, and
• Amount paid (in ₹).

All deducted tax payment must match deposits; partial payments invalidate the statement.

Q12. What if I do not have a PAN?

Ans: Form No. 142 cannot be filed without a valid PAN for the exchange (Part A). In such a case the Exchange needs to obtain PAN before filing Form No. 142.

Further, quoting of Buyers’/brokers’ PANs are also mandatory in Parts B/C. If unavailable, follow guidelines for reporting (e.g., ‘PANNOTAVBL’) but ensure compliance to avoid rejection.

Q13. I want to declare that no tax was deducted on certain transactions. Where should this be mentioned?

Ans: Report such transactions in Part B(ii), including broker name/address/PAN/TAN, transaction date, VDA value/number, and total consideration.

Affirm completeness and correctness in Verification, signed by the responsible person (full name, designation, PAN).

Q14. Can Form No. 142 be filed if only part of the tax is deposited?

Ans: No. All tax must be fully deposited before filing, providing complete challan details in Part B.

Q15. Can Form No. 142 be filed offline?

Ans: No. Form No. 142 must be filed electronically via the Income Tax e-Filing portal after logging in with the valid PAN of the exchange.

Q16. Why is Form No. 142 important?

Ans: Filing Form No. 142:

• Ensures tax compliance on VDA transfers via “Exchange”.
• Reduces litigation and administrative burden for the taxpayer and department.
• Enhances compliance rating and trust-based tax administration.
• Promotes transparency, enhances trust-based administration, and simplifies compliance through auto-features.

Guidance Note on Income Tax Form 142 (replaces 26QF): Quarterly statement of tax deposited in relation to transfer of virtual digital asset under section 393(1) of the Income-tax Act, 2025 furnished by an Exchange

Form No. 142: Quarterly statement of tax deposited in relation to transfer of virtual digital asset under section 393(1) [Table: Sl. No. 8(vi)] to be furnished by an Exchange for the quarter ending…of Tax Year

Purpose:

Form No. 142 is a quarterly statement required to be furnished by Virtual Digital Asset (VDA) Exchanges to report tax deducted at source (TDS) under section 393(1) [Table: Sl. No. 8(vi)] of the Income-tax Act, 2025 read with rule 219 of the Income-tax Rules, 2026.

The Form must be filed electronically with the Director General of Income-tax (Systems) or any person authorised by them.

The form captures details of tax deducted and deposited on transactions relating to the transfer of Virtual Digital Assets (e.g., cryptocurrency, NFTs) as well as details of transactions on which tax was not deducted in accordance with notified guidelines. It enables the Income-tax Department to verify compliance with the 1% TDS obligation on VDA transfers.

Who Should File:

The form must be filed by:

• Any Exchange facilitating VDA transactions,
• Required to report TDS deducted under section 393(1) [Table: Sl. No. 8(vi)] on buyer/broker transactions, and
• Also required to report VDA transfers on which TDS was not deducted due to specific exemptions under section 400(2) of the Income-tax Act, 2025.

Frequency & Due Dates:

Form No. 142 must be furnished quarterly:

Structure of Form No. 142:

1. Part A – Particulars of the Exchange: Name, Address, PAN, Contact Details, Tax Year

2. Part B – Details of transactions

• Details of tax paid with respect of transactions referred in Rule 219(2):

> Name, Address and PAN

> Name of VDA

> Date of transaction

> Value of VDA bought

> Number of VDA bought

> Total consideration

Form No. 142 (Earlier Form No. 26QF)

> 1% of Total Consideration i.e. TDS Deducted

> Date of tax payment

> Challan details, including:

• • BSR Code
  • Amount paid
  • Challan Serial Number
  • Details of transactions on which tax was not deducted in accordance with the guidelines issued under section 400(2):

> Name, Address & PAN

> TAN

> Name of VDA

> Date of transaction

> Value of VDA bought

> Number of VDA bought

> Total consideration paid/credited

3. Declaration: Declaration by the exchange affirming correctness and completeness of information.

Documents/details required to file Form No. 142:

1. Buyer/broker details (name, address, PAN).

2. Transaction-level VDA data.

3. Ledger showing consideration amounts and VDA quantities.

4. TDS computation sheets for each transaction.

5. Challans and BSR codes for TDS paid.

6. Records of transactions exempt from TDS under section 400(2).

Process flow for Filing Form No. 142:

1. Log in to the Income-tax e-filing portal.

2. Navigate to e-File → Income Tax Forms → File Income Tax Forms → Persons not dependent on any Source of Income (Source of Income not relevant) → Collection and Recovery of tax (Form 142).

3. Select Form No. 142 and the tax year and relevant quarter.

4. Fill Basic Information

5. Upload details of transaction where TDS was deducted.

6. Upload transactions where TDS was not deducted.

7. Enter challan details for corresponding TDS payments.

Note: For payment of tax under Form No. 142, please use challan ITNS – 280, minor head ‘Advance Tax (100) or Self – Assessment Tax (300)’ as applicable.

8. Review all entries and validate.

9. Submit the form using EVC or DSC.

Outcomes of the Processed Form No. 142:

• After processing of statement, system will generate the default summary as per section 399.
• Details of transactions where TDS was not deducted shared with INSIGHT and CPC-ITR Portal.

Brief Note on Qualitative Changes made:

The revised Form No. 142 will be a smart one to enhance user experience and providing ease of filing through

a. auto-population/pre-filling of relevant details using information available from the Taxpayer’s profile.

b. real time validations & error handling

c. drop downs & date pickers

d. integration with APIs & Databases

e. Check box based smart verification

f. Standardization of name & address fields etc.

Common Changes Made Across Forms:

1. To make Forms system-friendly and enable e-filing and uploading, certain anomalies found due to grouping of Name, Designation, Address and PAN have been separated into different boxes.

2. Assessment / Financial / Previous year or years have been replaced with Tax Year or Years, wherever appearing in the Form/Annexure.

3. Changes in Sections, Clauses and Schedules have been aligned as per the Income-tax Act, 2025.

4. Currency symbol “Rs.” has been replaced with “₹”.