Indian Compliance & Tax

What is the 1% TDS on crypto transactions in India?

The 1 percent TDS on crypto transactions in India is a tax deducted at source under Section 194S, applied to the transfer of Virtual Digital Assets above specified threshold limits. It is collected at the point of sale or transfer and credited against the seller's eventual tax liability, functioning as a tracking and advance-collection mechanism rather than an additional tax. For example, on a qualifying sale of one lakh rupees of crypto, one thousand rupees is withheld as TDS. The deducted amount can be adjusted when the seller files their annual return.

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.