News > 1% TDS on crypto investments in India, industry players say ‘wait and watch’

1% TDS on crypto investments in India, industry players say ‘wait and watch’

The Siasat | 01/07/2022 07:36 PM | Click to read full article

As the Reserve Bank of India (RBI) further tightens its stand on cryptocurrencies, the 1 per cent tax deducted at source (TDS) on virtual digital assets (VDAs) and cryptocurrencies came into effect on Friday. 

The new section mandates a person, who is responsible for paying to any resident any sum by way of consideration for the transfer of a virtual digital asset (VDA), to deduct an amount equal to 1 per cent of such sum as income tax thereon.