When you trade cryptocurrency in India, Crypto TDS India, a tax deduction at source rule that requires exchanges to withhold 1% of every trade value. Also known as Tax Deducted at Source on crypto, it’s not a new tax—it’s a collection mechanism. The government doesn’t charge you extra. Instead, it takes a small slice upfront to make sure you report your gains later. This rule applies to every buy, sell, or swap you make on Indian exchanges, whether it’s Bitcoin, Ethereum, or a meme coin. It’s not about punishing traders. It’s about bringing crypto into the same reporting system as stocks or real estate.
Behind Crypto TDS India is a bigger story: crypto taxation India, how the Indian government treats digital assets as property, not currency. Also known as digital asset taxation, this means every time you trade, you could owe capital gains tax. If you hold for less than three years, it’s taxed as income. If you hold longer, it’s taxed at 20% with indexation. And TDS? That’s just the first step. Exchanges like WazirX, CoinSwitch, and ZebPay now automatically deduct 1% from every transaction. You don’t get a choice. You don’t get a bill. It just happens. This isn’t unique to India. Countries like the UK, Australia, and Canada also track crypto trades closely. But India’s TDS rule is one of the most aggressive in the world because it hits every single trade, no matter how small.
What does this mean for you? If you’re trading casually, TDS might feel like a nuisance. But if you’re serious about crypto, it’s a signal. The government is watching. Your records matter. You need to track every transaction—when you bought, when you sold, what you paid, what you got. Even if you use a foreign exchange like Binance, if you’re an Indian resident, you still owe taxes. And TDS doesn’t erase that. It just makes it harder to hide. Some people think they can avoid it by using P2P or wallets. But the IRS, FATF, and India’s Income Tax Department are getting better at tracing those flows. The days of flying under the radar are over.
There’s also the issue of crypto trading India, how people still find ways to trade despite strict rules. Also known as decentralized crypto access, many users turn to offshore platforms, privacy coins, or even crypto-to-crypto swaps to avoid TDS. But those moves come with risks: no consumer protection, no refunds, and no legal recourse if something goes wrong. Meanwhile, Indian exchanges are pushing for clearer guidelines. They want to know how to handle staking rewards, NFT sales, and DeFi transactions under TDS. Right now, the rules are unclear on those fronts. That’s why so many posts in this collection focus on scams, dead tokens, and unregulated platforms—because people are trying to navigate a gray zone.
What you’ll find here isn’t hype. It’s real. Posts about RBT airdrops that don’t exist, Blue Protocol that’s dead, and iZiSwap with no audits—all of them show how people get fooled when they’re desperate to make money without understanding the rules. And that’s exactly why TDS exists. To slow down the chaos. To force accountability. Whether you love it or hate it, Crypto TDS India is now part of your trading reality. The question isn’t whether you can avoid it. It’s whether you’re ready to play by the new rules.
India taxes virtual digital assets at a flat 30% with no loss offsets and 1% TDS on all trades. This guide covers rules, reporting, pitfalls, and strategies for 2025.
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