Tax Deducted at Source (TDS) is an advance tax collected at the source by the government to establish a trail of transactions.
Under this system, tax is deducted at the origin of the income. Tax is deducted by the payer and is remitted to the tax authorities by the payer on behalf of the payee.
Effective 1 July 2022, 1% TDS is applicable on the sale/transfer of virtual digital assets (VDA/crypto). CoinSwitch will deduct this tax and remit the amount to the tax authorities.