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TDS On Virtual Digital Assets

TDS On Virtual Digital Assets:

The Government of India clarified that the TDS on virtual digital assets (VDA) continues to be 1%.

  • The clarification from the Income Tax comes at a time when some media reports mentioned that the TDS rate for virtual digital assets has been dropped to 0.1% from 1% as announced earlier in the budget.
  • The 1% TDS will be applicable from July 1.
  • The Centre had set a 30% taxation on the gains from the cryptocurrency assets.
  • TDS is a liability enforced against the exchanges that deposit tax on behalf of sellers on the platform.
  • It will be calculated at 1% of the transaction value.