Stablecoins, RWA & Tokenization

Does the 1% TDS apply to stablecoin transactions in India?

Yes, the 1% TDS on virtual digital assets generally applies to stablecoin transactions in India, since stablecoins are treated as VDAs. The tax is deducted at source on the transfer of a VDA above the prescribed thresholds, so trades involving stablecoins typically trigger the same 1% deduction as other crypto transfers. For example, selling a stablecoin on a platform can have 1% withheld, which is later adjusted against your total tax liability. Rules and thresholds can change, so verify the current position with a qualified tax professional.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.