What is 1% TDS on crypto?

What Is 1% TDS on Crypto?

When you transfer virtual digital assets (e.g. sell or swap crypto) above a specified value, the exchange or payer must deduct 1% TDS (Tax Deducted at Source) on the payment. This is not an extra tax; it is an advance payment of your income tax. When you file your return, you report your total crypto income and tax. The TDS already deducted is set off. If your total tax is less than TDS (e.g. you are below taxable income), you can get a refund. Keep the TDS certificate or statement from the exchange for your records.