If I pay 1% TDS, should I also pay the 30% tax on crypto assets?
Updated
Understanding Taxes on Crypto Asset Sales in India:
30% Tax on Crypto Asset Gains: Starting from April 1, 2022, if you sell crypto assets and make a profit, you'll need to pay a 30% tax on the gains. Additionally, there's a 1% TDS (Tax Deducted at Source) imposed by the government, deducted from the selling value of your crypto assets. In short, you're required to pay both the 30% tax on gains from selling crypto assets and the 1% TDS.
Flat 30% Tax Rate on INR 50,000 Income Gain: If your income gain from crypto assets crosses INR 50,000, there's a flat 30% tax rate applicable. As an investor, if your income reaches this threshold, you'll owe INR 15,000 as tax on your crypto assets' income for that financial year. Sellers are responsible for paying this amount while filing their Income Tax Returns (ITRs).
Claiming TDS Refund: You have the option to claim a TDS refund based on your income slabs.
For more information or to file for a TDS return, you can visit the Income Tax India website at Income Tax India - File TDS Return .
