Crypto exchange CoinDCX has revealed how the 1% TDS rule will be implemented on its app. Let us know what CoinDCX has to say in its blog post.
TDS on Crypto from July 1: CoinDCX, one of the largest crypto exchanges in India, recently announced the introduction of 1% TDS rule on crypto transactions through its app. Explain that from July 1, investors will have to pay 1 percent TDS on all crypto transactions. The Government of India has announced that 1% TDS will be applicable from 1st July 2022 on the sale of crypto and other virtual digital assets. In the Union Budget 2022, Finance Minister Nirmala Sitharaman had said that from July 1, TDS of 1% will be levied on payments made for the sale of virtual assets. In addition to 1% TDS, Sitharaman also announced 30% tax on income from transactions of digital virtual assets, including crypto and NFTs.
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In an official blog post, CoinDCX has explained how the 1% TDS rule will be implemented on its app. Let us know what CoinDCX has to say in its blog post.
TDS will not be deducted on these transactions
- No TDS will be applicable on Buy, Limit Buy, CIP and Earn orders.
- CIP is an acronym for Crypto Investment Plan offered by CoinDCX. This is also a type of Buy order.
TDS will be applicable on these transactions
- 1% TDS will be deducted on sale and limit sale orders.
- The exchange has said that all users will have to compulsorily complete their KYC process on or before July 1, 2022, to do any transaction on the app.
- 1% TDS can be claimed as refund while filing ITR for the financial year if the income tax deduction payable is less than TS.
- The exchange has said that 1% TDS will be applicable on sale transactions on all crypto assets.
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The exchange further wrote in its blog post, “TDS will be applicable on every sale transaction on all crypto assets from 1st July 2022. You can view TDS deduction by clicking on the (i) button on the Sell order screen before selling the crypto asset. You can also visit the “Order Details” page to view your TDS deduction in all the transactions. This way, you do not need to pay TDS to withdraw INR from CoinDCX Wallet to your bank account as you have already paid TDS when you sold your crypto and received INR in return in your wallet.”
(Crypto and other virtual digital assets are un-regulated in India. They are considered extremely risky to invest in. Please consult your financial advisor before making any investment decision.)