How is TDS different from the 30% gains tax?
- TDS is an advance tax to establish a trail of transactions.
- CoinSwitch will deduct TDS at the time of order execution and will remit the amount to relevant tax authorities.
- TDS can be adjusted later against your total tax liability while filing your IT returns.
30% Gains Tax:
- For cryptos, users are liable to pay 30% tax, plus applicable surcharge and cess.
- This tax is collected on gains (profits) made from crypto transactions.
- It has to be paid at the time of filing your income tax returns.
Note: Effective July 1, 2022, 1% TDS will be applied to any sale or transfer of digital assets (crypto). CoinSwitch will deduct this tax from any buy-sell transaction you conduct. We will then pay the same to the relevant tax authorities.