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How much TDS is applicable on margin orders with leverage?

With respect to the recent TDS regulations decided by the Income Tax Department of India, Margin trading may attract a higher TDS as you increase leverage since it is applicable on the entire transaction value. On a crypto-to-crypto (C2C) Margin Buy order, a TDS of 1% is to be deducted on the openin

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TDS for CoinDCX Pro Users

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Is KYC mandatory for new users starting July 01, 2022?

Yes, all users will have to mandatorily complete their KYC process on/or before July 1, 2022, in order to make any transaction (Buy/Sell) on CoinDCX. We would urge you to complete your KYC well in advance, to avoid any delays.

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TDS for CoinDCX Pro Users

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Why is TDS applicable on the Buy side of Non-INR pairs (C2C) unlike the Buy side of INR pairs (F2C)?

When you buy a pair that isn't in Indian Rupees (INR), the process begins by selling the base pair. For example, when buying BTC with USDT, USDT is sold first, followed by the purchase of BTC.

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TDS for CoinDCX Pro Users

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Who will be liable to deduct 1% TDS?

The exchange shall deduct the 1% TDS based on various order types.

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TDS for CoinDCX Pro Users

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Is TDS applicable on “Gross order amount” or “Net order amount”?

According to the CBDT circular dated June 23, 2022 [read here], TDS is applicable on the Net order amount. In simple words, the Net order amount is the transaction value minus the exchange fees. For example, if you want to sell BTC worth ₹1000, an exchange fee of 0.2% is applicable on this amount af

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TDS for CoinDCX Pro Users

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Where can I see my TDS deductions?

Before you sell a crypto asset, it's important to check the TDS (Tax Deducted at Source) deductions. Here's how you can do it easily: Click on the (i) button on the SELL ORDER screen. This will show you the TDS deductions related to your sell order. To get a clear view of your TDS deductions for eac

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TDS for CoinDCX App Users

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Can you explain with examples how TDS will be calculated for various order types (Spot/Margin/Future)?

Insta Spot Buy - No TDS is applicable (App) Quickbuy Insta Buy - No TDS is applicable (Web) Insta Spot Sell - 1% TDS is applicable (App) Quickbuy Insta Sell - 1% TDS is applicable (Web) For example: 1% TDS to be deducted on the overall transaction value. If the sell value is INR 1500, we need to ded

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TDS for CoinDCX Pro Users

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Is TDS applicable if I transfer Crypto through the blockchain wallet?

We do not apply TDS (Tax Deducted at Source) for Crypto deposits or withdrawals made via a blockchain wallet route. This is because such transactions do not involve the transfer of Crypto assets through our exchange platform.

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TDS for CoinDCX App Users

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Is the 1% TDS mandatory?

According to the updated Income Tax rules, CoinDCX is required to deduct TDS (Tax Deducted at Source) on relevant orders. But don't worry, this amount can be adjusted or claimed as a refund when you file your Income Tax Return (ITR) for the year.

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TDS for CoinDCX App Users

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Is KYC mandatory starting July 01, 2022?

Starting from July 1, 2022, completing your KYC (Know Your Customer) process is essential for all CoinDCX users to engage in transactions such as buying or selling. We strongly advise completing your KYC promptly to avoid any potential delays in your transactions.

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TDS for CoinDCX App Users

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How can I avoid getting taxed on crypto?

The tax measures announced by the Government on cryptos are comprehensive, and it is unlawful to evade taxes.

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TDS for CoinDCX Pro Users

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Will CoinDCX issue any statements/certificates for the 1% TDS deducted?

We will issue the TDS certificate (16A) within 90 days of the closure of the financial quarter. The financial quarters are as follows [April - May - June | July- Aug- Sep | Oct- Nov- Dec | Jan- Feb - March]. This will be sent to all users via email communication with the subject line - “CoinDCX - [F

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TDS for CoinDCX App Users

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Is 1% TDS applicable for EARN?

TDS will not be applicable for EARN. If you sell your crypto assets, only then you’ll be levied the 1% TDS.

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TDS for CoinDCX App Users

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If I buy BTC 5 times in a day and sell it 3 times, will I be charged TDS for every transaction?

No, TDS will not be applicable for all 5 buy orders. However, you'll be charged 1% TDS for all the 3 sell orders.

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TDS for CoinDCX App Users

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Who will be liable to deduct 1% TDS?

The 1% TDS is to be deducted from the sum payable on the sell value of crypto assets belonging to them. The exchange shall deduct the TDS before making payment to a user for selling any crypto asset.

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TDS for CoinDCX App Users

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Is TDS applicable on all transactions (buying crypto or selling crypto or both, adding money, withdrawal)?

Tax Deducted at Source (TDS) applies exclusively to the sale of crypto assets. When you purchase or withdraw funds from your CoinDCX wallet to your bank account, TDS does not come into play. However, it's crucial to keep in mind that TDS is relevant for buy orders involving C2C (Crypto-to-Crypto) pa

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TDS for CoinDCX App Users

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To whom is this TDS paid?

TDS is the tax deducted at the source which is paid to the Government on behalf of the deductee by CoinDCX as a part of compliance with the new crypto taxation rules announced in the Union Budget 2022. This will be available as a credit against your tax liabilities at the end of the financial year.

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TDS for CoinDCX App Users

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Do I have to pay tax on the referral earned through exchanges?

Earning Referral Income on Exchanges and Taxes ​ When you earn referral income from exchanges, the tax you owe will be based on your regular tax slab instead of the standard 30% crypto provision. However, if you opt to sell the crypto earned through referrals, a 1% Tax Deducted at Source (TDS) will

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TDS for CoinDCX App Users

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Is TDS applicable if I transact less than ₹10,000 in a financial year?

According to Income Tax rules, if your total transactions (both buying and selling) on all exchanges amount to less than ₹10,000, TDS (Tax Deducted at Source) might not apply. However, it's essential to understand that these limits apply to all your trades across different exchanges. Starting from J

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TDS for CoinDCX Pro Users

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What is Section 206AB in the Income Tax Act?

As per Section 206AB of the Income Tax Act, 1961, if any user has not filed their Income Tax Return in the last two years and the amount of TDS is ₹50,000 or more in each of these two previous years, those users are considered defaulters. We will temporarily block those defaulter’s accounts from Jul

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TDS for CoinDCX Pro Users

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DISCLAIMER

The information and material contained herein are subject to change without prior notice including prices which may fluctuate based on market demand and supply. The material available on the site is proprietary to CoinDCX, its parent, Licensor and/or its affiliates and is for informational purposes and informed investors only. This material is not: (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, or (ii) intended to provide accounting, legal, or tax advice, or investment recommendations. Note Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.

*Data sourced from Looker app as on 01st May,2023
*Data as on 01st May,2023
*Quarterly trading volume for Q4 FY'22. Currency conversion rate applied as in data capturing period
*FIU Registered entity, NEBLIO TECHNOLOGIES PVT LTD
*Certified in India for May 2023-24