TDS on your transfers,
explained.
New transfers to India have no TDS. Some transfers in earlier financial years did — here is how they worked, what was paid in your name, and how to claim it back.
See my tax statementsHow those earlier transfers worked
They used digital-asset payment rails, which were quicker and cheaper than traditional bank transfers.
You started the transfer
You sent dollars from the US with Xpat.
Dollars became a stablecoin
Your funds were converted into a stablecoin — a digital asset tied to the US dollar.
Sent to our partners in India
The stablecoin went to our settlement partners in India.
Rupees to your bank
They converted it to rupees and paid it into your Indian bank account.
The tax side
Converting a stablecoin into rupees can create a gain from the exchange-rate difference, and under Indian tax law that gain can be taxable — at 30% on such gains.
Example (illustrative numbers): you send $1,000 when the market rate is ₹85 and receive ₹86 per dollar, a gain of ₹1,000. Tax on it at 30% is ₹300. On these transfers TDS of 1% of the transfer value — ₹860 on ₹86,000 — was paid to the Income Tax Department in your name, and you can claim it when you file, against that ₹300.
Your tax position depends on your own circumstances; confirm it with your CA.
What you’ll see on Form 26AS
Settlement on these transfers was done by our partners Mokshagna Technologies Pvt Ltd and RPFAS Technologies Pvt Ltd. Up to and including FY 2024–25, these names appear on your Form 26AS.
From FY 2025–26, only RPFAS Technologies Pvt Ltd may appear — and only if you made transfers in the first months of that financial year.
Claiming it back
Your tax statement
Tax statements in the app list, by financial year, the transfers with TDS and the amount you can claim — ready to share with your CA.
File your ITR
Include only those transfers in your Indian return for that year and claim the TDS.
Help filing
Prefer an expert? Tax in the app connects you with our tax-filing partner.
Good to know
No. TDS doesn’t apply to new transfers — your recipient gets the full amount shown.
No. On the transfers where it applied, Xpat paid the TDS to the Income Tax Department on the recipient’s behalf, so it can be claimed when filing.
Open Tax statements in the Xpat app and choose the financial year. If no TDS was paid that year, it says there is nothing to claim.