What is the 1% TDS?
Updated
Starting from July 01, 2022, revised Income Tax regulations are in effect concerning the sale of crypto assets and NFTs. Here's what you need to know:
TDS Applicability: A Tax Deducted at Source (TDS) of 1% will be applicable on all sell transactions of crypto assets and NFTs.
Impact on Sellers: If you sell a crypto asset, 1% of the sell value will be deducted as TDS. For example, if your sell transaction amounts to INR 100,000, INR 1,000 will be deducted as TDS, and you'll receive a net amount of INR 99,000.
For more detailed information on the taxation rules related to Virtual Digital Assets, please refer to Section 194S on the official Income Tax Website. Here's the link: Circular No. 13 of 2022.
These regulations aim to provide clarity and adherence to tax obligations for individuals involved in crypto asset transactions. For specific queries or detailed clarifications, it's advisable to refer to the provided official document or seek guidance from a tax professional.
