Watch this video to know about the Tax Credit:
The government has implemented regulations for tax deductions at source (TDS) on various sources of income, including crypto transactions. To establish a trail of transactions, the trade for which TDS has been charged will be accurately represented in Form 26AS (Tax Credit Statement). This regulation went into effect on July 1, 2022.
TDS is deducted at the time of the sale transaction at CoinSwitch, and we remit it to the tax authorities on behalf of our users. The amount deducted from the sale consideration will be available as credit under "Bitcipher Labs LLP," the legal entity for CoinSwitch. The credits can be viewed under the "Amount Paid/Credited" column of the Tax Credit Statement, and it is essential to know that this is sale consideration and not profits from the sale of cryptos.
You can adjust these credits against their tax liability when filing their income tax returns.
To learn more about TDS on Cryptos and how it works, go to CoinSwitch's blog at https://coinswitch.co/blog/what-is-crypto-tds-and-how-does-it-work/.