Indian Compliance & Tax

Who deducts the 1% TDS on crypto trades — the exchange or the buyer?

In India, the 1% TDS on transfer of a virtual digital asset is generally deducted by the buyer, but on most exchange-based trades the exchange deducts and deposits it on the buyer's behalf. The party responsible depends on how the trade is routed. For example, buying crypto on a compliant Indian exchange usually means the platform handles the 1% TDS automatically, while a peer-to-peer trade can place the duty on the buyer. This is general information, not tax advice; confirm your specific case with a qualified professional.

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.