What do you need to know about TDS on crypto?

What is TDS?

TDS stands for Tax Deducted at Source and denotes a fee paid to the central government for certain financial transactions including salary payout, trading, etc.

Is TDS applicable to cryptocurrencies?

Yes, as per the revised income tax laws, TDS deduction will be applicable to transfers of all virtual digital assets (VDA) including cryptocurrencies and non-fungible tokens (NFTs).

TDS is applicable when you:

  • Sell crypto for INR
  • Exchange one cryptocurrency for another
  • Have placed an order before July 1st, but the order is executed on or after July 1st
  • Use Krypto Pay (available only on the mobile app)

TDS is NOT applicable when you

  • Buy crypto using INR
  • Deposit or withdraw money on our exchange
  • Use Krypto send (available only on the mobile app)
  • Transact with a broker on the Krypto platform (as long as the trader themselves deduct the required TDS and they have a written agreement with Krypto specifying the same).

FAQs

Will I have to pay TDS if I incur a loss?

TDS will be applicable irrespective of whether you make a profit or loss in a transaction.

Can I reclaim the TDS? If yes, how?

Yes, you can file for a TDS refund based on your income slabs. For more information, visit Income Tax India — File TDS Return.

Where can I view the TDS deducted on the Krypto platform?

To maintain transparency, all TDS deductions will be visible to you in the History | Trades section on Krypto.

Where can I learn more about TDS on VDAs?

Please refer to the Finance Bill 2022, in addition to updates from the Central Board of Direct Taxes. For all other queries about taxes, please refer to the official website of the tax authority.

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