TDS on CryptoG Transactions
In compliance with Section 194S of the Indian Income Tax Act, a 1% Tax Deducted at Source (TDS) is applicable on the transfer of Virtual Digital Assets (VDAs)—including cryptocurrency and NFTs—effective from July 1, 2022. This applies to relevant transactions conducted on the CryptoG platform.
When is TDS Applicable?
- Crypto-to-crypto sell transactions
- Crypto-to-INR sell transactions
- Transfers of NFTs or other digital assets involving a change of ownership
- Crypto withdrawals to external wallets
TDS Rate and Thresholds
- Standard TDS rate: 1% of the transaction value
- Higher rate (5%) if the user has not filed income tax returns for the last two financial years and TDS exceeds ₹50,000
- Exemption thresholds:
- ₹50,000/year for specified persons (below taxable limit / no audit needed)
- ₹10,000/year for others
TDS Calculation Example
For a sale transaction worth ₹1,00,000:
- Platform Fee (example): ₹500
- Net sale value: ₹99,500
- TDS deducted: ₹995 (1% of ₹99,500)
- Final amount credited: ₹98,505
Important Notes for CryptoG Users
- TDS is automatically deducted by CryptoG before completing the transaction.
- The deducted TDS amount is remitted to the Income Tax Department.
- Transaction history and Form 26AS reflect the TDS.
- Users can claim the deducted TDS while filing their ITR.
TDS Not Applicable On
- INR deposits or wallet top-ups
- Crypto buy transactions (buying with INR)
- NFT minting (TDS applies only at the time of sale or transfer)
TDS Certificates
CryptoG will provide necessary documentation for all deducted TDS amounts. You can download TDS certificates (Form 16A) through your CryptoG account.
Need Help?
For any queries or clarifications related to TDS deductions, reach out to our support team:
support@cryptog.online