How will TDS impact crypto investors?

Here's how it works for investors or traders on Mudrex, broken down into four scenarios:

Situation 1 - Buying Crypto with INR:

When purchasing cryptocurrency with INR, no TDS is applicable. Since you're buying with INR, there's no TDS requirement from the government at this stage.

Situation 2 - Selling Crypto for INR:

When selling cryptocurrency for INR, a 1% TDS is levied on the net value of the sell transaction. For example, if you were selling ₹1000 worth of Bitcoin today, 1% would be deducted from the selling amount after deducting exchange transaction fees.

Situation 3 - Buying Crypto with Crypto:

When buying cryptocurrency with another cryptocurrency, a 1% TDS is applicable on the sale transaction of the crypto being exchanged. For instance, if you were using 1000 USDT to purchase $1000 worth of Bitcoin, you would need to pay 1% of 1000 USDT, which amounts to about 10 USDT as TDS.

Situation 4 - Selling Crypto with Crypto:

When selling cryptocurrency for another cryptocurrency, such as selling Bitcoin for USDT, a 1% TDS is applied to the value of Bitcoin in INR that is being sold.