1% TDS to be levied on crypto trades from July 1 in India

All crypto exchanges will deduct the tax at source

Here are the details

Background

Certain virtual asset taxation policies were released last year

The Finance Ministry had proposed taxation on trading and profits

The TDS comes into effect from July 1

What has happened?

The TDS was announced in the Union Budget 2022-23

It levies a 1% tax on all virtual asset transfers

This is levied irrespective of profits or losses

Consequences

Regular crypto traders will be heavily affected

A full (buy+sell) transaction will attract a 2% charge

Trading volumes are expected to go down

Market in numbers

Crypto asset holdings in India: $5.3 billion+

Est total number of crypto owners in India: 100 million+

80% crypto owners in India are male

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