Indian Compliance & Tax

What is the difference between TDS and the 30% tax on crypto?

The 30% tax is the flat rate levied on gains from transferring Virtual Digital Assets under Section 115BBH, while TDS is a 1% tax deducted at source on the transaction value under Section 194S, regardless of profit. They are distinct mechanisms: TDS is an advance collection on the trade itself, and the 30% applies to your net gain at assessment. For example, on a sale you may see 1% withheld immediately, then reconcile the 30% liability when filing. The TDS already paid is credited against your final tax due.

This is general information, not tax advice. Tax rules change and depend on your individual circumstances — verify the current rules or consult a qualified tax professional before acting.