What is 1% TDS on crypto? Episode-4 #cryptotaxseries

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Join us for an informative Q&A session with Mudrex as we demystify the concept of 1% TDS (Tax Deducted at Source) on cryptocurrency transactions. In this video, we delve into the details and provide clarity on this transaction fee.

Our expert explains that TDS is a fee imposed on your crypto transactions, including both buying and selling. When you sell cryptocurrency, you are required to withhold and remit 1% TDS. Here’s an example to illustrate this process:

Let’s say you sell 10,000 MATIC in exchange for 4 ETH. As per the TDS requirement, you need to withhold 100 MATIC and remit the equivalent value in Indian Rupees (INR) as tax. It’s important to note that since the buyer is also selling crypto to you, they will withhold 0.04 ETH. As a result, you will receive 3.96 ETH, and the buyer will receive 9,900 MATIC.

Understanding the implications of TDS on cryptocurrency transactions is crucial for responsible tax management. Stay informed about this fee and ensure compliance with the regulatory requirements while conducting crypto transactions.

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#CryptocurrencyTDS #TaxDeductedatSource #CryptoTransactions #ExpertInsights #Mudrex #QandA

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