What is the 1% TDS and where will it be applicable?
Updated
As per revised Income Tax regulations, the 1% TDS will be applicable with effect from July 01, 2022 on “Payment on transfer of Virtual Digital Asset”.
Here’s the official link to the Income Tax Website. Please refer to Section 194S, which mentions the taxation rules on Virtual Digital Assets: https://incometaxindia.gov.in/communications/circular/circular-no-13-2022.pdf
Following table summarises the applicability of TDS on various order types:
Insta Spot Buy - No TDS is applicable (App) |
Insta Spot Sell - 1% TDS is applicable (App) |
Spot Buy - INR pairs - No TDS |
Spot Sell - INR pairs - 1% TDS is applicable |
Spot Buy - Non-INR pairs (C2C) - 1% TDS |
Spot Sell - Non-INR pairs (C2C) - 1% TDS |
Margin Long - 1% TDS on total value of position for both opening and closing orders |
Margin Short - 1% TDS on total value of position for both opening and closing orders |
Earn - No TDS is applicable |
Futures - No TDS is applicable |
