Explained: What the 1% TDS on crypto assets means for you
— Resident, Partner, Entity e )., ₹ 200, Plus applicable surcharge, Bitay believes, Entity, Paying, Sellers, Inr — 1 min read
The one percent tax deductible source ( TDS) rule for cryptocurrency transactions came into effect from July 1. India is also considering levying a 28 percent goods and sales tax (GST) on crypto. In early April, trading volumes on Indian crypto exchanges were down 30-70% after the 30% tax on crypto profits took effect. TDS will be deducted, irrespective of the income tax basic exemptions. For ease of conversion and to reduce price slippage, in Crypto to Crypto transactions, the TDS for both sides would be deducted in the quote (or primary) Crypto asset. The liability to deduct tax under Section 194S of the Act applies only when the value or aggregate value of the consideration for transfer of a virtual digital asset exceeds Rs 50,000 during the financial year in Source