USDT P2P Glossary for India: 40 Terms Explained (KYC, TDS, VDA, UPI, Release…)
Exchange apps, P2P chats and tax forms are full of jargon. This glossary explains the terms you’ll meet when buying or selling USDT with rupees in India, grouped by topic, with links to guides that go deeper.
The basics
USDT (Tether)
A token issued by Tether and designed to stay worth about 1 US dollar. Under Indian tax law it’s a virtual digital asset (VDA).
Stablecoin
A crypto token pegged to a stable asset, usually the US dollar. USDT and USDC are the biggest.
P2P (peer-to-peer)
Users trade directly with each other. The exchange holds the USDT in escrow; rupees go straight from buyer to seller.
INR / fiat
The Indian rupee, and government-issued money in general.
Digital Rupee (e₹)
The RBI’s central bank digital currency. Legal tender, not crypto. Some P2P sellers accept it as a payment method.
Exchange
A platform such as Binance or Bybit. P2P is one section of the exchange.
Your account
KYC
Identity verification using Aadhaar or passport, usually PAN, and a face scan. Required for P2P.
2FA
A second code, from an authenticator app, passkey or SMS, needed to log in or confirm actions.
Anti-phishing code
A word you choose that appears in genuine exchange emails, so fakes stand out.
Withdrawal whitelist
A setting that only allows withdrawals to addresses you’ve saved.
Funding wallet / Funding account
The exchange wallet used for P2P. USDT you buy arrives here; USDT you sell must be here.
Payments in India
UPI
India’s instant payment system, used through bank apps, PhonePe, Google Pay and Paytm. Daily limits apply, usually about ₹1 lakh.
UPI ID (VPA)
An address like name@bank used to receive UPI payments.
IMPS / NEFT
Bank transfers by account number and IFSC. IMPS is instant; NEFT settles in batches. Both suit larger amounts.
UTR
The unique transaction reference for a bank or UPI payment. Keep it for every P2P order.
Collect request
A UPI request asking you to approve a payment out of your account. Never approve one during a P2P sale.
Offers and orders
Advertiser / merchant
Someone who posts buy or sell offers. Verified merchants have passed extra checks.
Limits
The minimum and maximum an offer accepts per order, in rupees.
Completion rate
The share of an advertiser’s orders that finished. coinglee only counts advertisers at 95% or above.
30-day orders
Trades completed in the last 30 days. coinglee only counts advertisers with 50+.
Payment window
Time the buyer has to pay after opening the order, usually 15 or 30 minutes.
Average release time
How long the advertiser usually takes to release after being paid. Bybit publishes it.
During a trade
Escrow
The exchange locks the seller’s USDT when an order opens and releases it to the buyer only after the seller confirms payment.
Mark as paid
The buyer’s button to say “I’ve paid”. Only tap it after paying.
Release
The seller’s confirmation that payment arrived, sending the USDT to the buyer. Final.
Appeal
The in-order button that asks exchange support to step in.
Third-party payment
Money from an account not in the buyer’s own name. The basis of the triangle scam.
Prices
Buy price / sell price
What you pay per USDT when buying, and what you receive when selling.
Spread
The gap between buy and sell prices: the cost of a round trip.
Mid-market rate
The USD/INR interbank rate, coinglee’s benchmark.
Premium
How far the cheapest USDT buy price sits above the USD/INR mid-market rate. See why USDT costs more than the dollar and the premium index.
Tax
VDA (virtual digital asset)
The tax-law category that includes crypto and USDT.
30% tax
The flat rate on VDA gains, plus cess; no set-off of losses.
TDS (Section 194S, now Section 393)
1% tax deducted at source on VDA transfers above yearly thresholds; on P2P, the buyer deducts. See 1% TDS and 30% tax.
Form 26AS / AIS
Statements from the tax department that show TDS credited to your PAN.
Schedule VDA
The section of the income tax return where VDA gains are reported.
Rules and risks
FIU-IND
India’s Financial Intelligence Unit. Crypto exchanges serving Indians must register with it under PMLA. Binance and Bybit are registered. See is crypto legal in India.
Lien / freeze
A hold a bank places on an account after a cyber-crime complaint. See P2P safety in India.
1930 / NCRP
The national cyber-crime helpline and the National Cybercrime Reporting Portal (cybercrime.gov.in), where fraud complaints are filed.
Triangle scam
A scammer pays you for USDT with a fraud victim’s money. See triangle scams and fake UPI screenshots.