TDS (Tax Deducted at Source) is a tax collection mechanism introduced by the Government of India to collect tax at the time of a transaction.
For crypto transactions, TDS on Virtual Digital Assets (VDA) was introduced under Section 194S of the Income Tax Act, 1961, which prescribes a 1% TDS on applicable transactions.
The amount deducted as TDS is deposited with the Central Government and can be adjusted against the user’s final tax liability while filing their Income Tax Return (ITR).
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article