What is TDS deduction in crypto trades?

What Is TDS Deduction in Crypto Trades?

When you sell or transfer crypto above a threshold, the exchange (or payer) deducts 1% TDS and deposits it with the government. This is Tax Deducted at Source: an advance of your income tax. When you file your return, you report your total crypto income and tax. The TDS already paid is set off. If the TDS is more than your total tax (e.g. you are below taxable income), you can claim a refund. Check Form 26AS or your exchange statement for TDS credited to your PAN.