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Selling and Withdrawing to Your Bank
How do I sell my crypto and get rupees into my bank account?
As of November 2026, you sell on the exchange, let the fee and 1% TDS come out, then withdraw the INR balance to the bank account that passed your KYC. A small IMPS credit usually lands in minutes, and a flagged withdrawal takes longer.
Module 3 · Chapter 6 of 8 · ~5 min read · Tax and law facts as of November 2026
Last chapter added up the fee, the spread and the 1% TDS, tax deducted at source, on one ₹10,000 trade. Once you actually sell, a new question follows. How do you turn that INR balance into cash in your own bank account?
- ₹15,000ETH sale
- ₹1501% TDS held
- ₹30fee held
- ₹14,820reaches your bank
6.1 Sell first, withdraw second
Selling crypto does not send money straight to your bank. It lands first as an INR balance, the rupee balance sitting inside the exchange, the same wallet your UPI deposits fill.
Withdrawal is a second, separate step. You tell the exchange to move that INR balance to your own bank account, the one that passed KYC.
Think of your salary account, where pay lands first and you withdraw cash later at an ATM. A crypto sale works the same way, with the exchange standing in for the bank in between.
The order never flips: you cannot send a coin itself to a bank account, only rupees make that trip.
6.2 What lands in your INR balance
A sale is not free. The exchange takes its own fee first, then holds back TDS, before the rest reaches your INR balance.
The fee is small and set by the exchange. TDS is fixed by law. The exchange cuts 1% of the sale value under s.393(1) of the Income-tax Act 2025. It applies on every sale above the yearly threshold.
That threshold is ₹50,000 a year for a specified person, a term for traders who already deal in large sums. For everyone else, it is ₹10,000. Most beginners sit in the second group, so a single ₹15,000 sale already crosses it.
A sale of ₹15,000 of Ether, a coin called ETH, shows the full working.
The table below walks the same ₹15,000 sale step by step, with a rough timing for each line.
| Step | Working | Amount | Typical timing |
|---|---|---|---|
| Sale value | ETH sold on the exchange | ₹15,000 | Instant match |
| Exchange fee (assumed 0.2%) | 0.2% x ₹15,000 | ₹30 | Deducted at the trade |
| TDS held (1%) | 1% x ₹15,000 | ₹150 | Deducted at the trade |
| INR balance | ₹15,000 - ₹30 - ₹150 | ₹14,820 | Shows within minutes |
| Bank credit (IMPS) | Withdraw the full balance | ₹14,820 | Minutes to a few hours |
Each row only restates the one sale, so the ending figure never changes once you fix the sale value.
6.3 Withdrawing to your verified bank account
- Open the app and tap Withdraw, then choose INR.
- Pick the bank account you added during KYC. Most exchanges allow no other.
- Type the amount, and start small the first time.
- Confirm with 2FA, the second login check you switched on after KYC.
- Wait for the bank credit, which the app usually tracks for you.
The exchange checks the account name against your KYC name before any money leaves. A single mismatched initial can stop a withdrawal cold.
Small amounts usually travel by IMPS and land in minutes. Larger ones may move by NEFT or RTGS, bank transfers built for bigger sums, which can take longer, especially overnight.
6.4 Delays, limits and flagged withdrawals
Exchanges cap how much you can withdraw in a day, and a first withdrawal often gets extra scrutiny.
A withdrawal can also sit for review. That happens if the amount looks unusually large for your account, or if you just added a bank account or changed your password.
History gives a reason for caution too. In July 2024, hackers stole roughly $230 million from WazirX, an Indian exchange, and withdrawals stayed frozen for months afterward. FTX, a global exchange, collapsed in November 2022, and many customers could not withdraw for years. Both are the exception, not daily life on a registered Indian exchange. No public rule says how often banks flag crypto credits, so ask your exchange's support team.
6.5 Keep the statement
Download the exchange's trade and withdrawal statement after every sale. It is your proof for Schedule VDA, the crypto section of the ITR, the yearly tax return form.
The 1% TDS you saw deducted does not show up right away. It can take until the next quarter to appear in Form 26AS, the tax credit statement tied to your PAN.
Save the statement anyway, and match it to Form 26AS once it updates. A gap is far easier to fix with the original record already in hand.
This chapter is educational only. It is not tax, legal or investment advice. Check current rules with a chartered accountant.
Next: the trade journal you need for the ITR.
Key takeaways
- Sell first. The money lands in your INR balance, not your bank, until you withdraw it.
- The exchange cuts its fee and 1% TDS from the sale value before you see the balance.
- Withdraw only to the bank account that passed your KYC, with a matching name.
- A new bank account or a large first withdrawal can trigger an extra review day.
- Save every trade and withdrawal statement for Schedule VDA, and check it against Form 26AS later.
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Educational & illustrative only — not investment advice. Drishti Pro publishes AI-generated trade ideas and their public track record for information. Crypto is volatile and you can lose money. Nothing here is a recommendation to buy or sell any asset. Do your own research.
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