Crypto Transactions 1% TDS: Impact of the Rule Explained

Crypto Taxation

  1. Finance Act 2022 introduced two rules:
    • 1% TDS on transfers of Virtual Digital Assets (VDAs)  including cryptocurrency.
    • 30% flat tax on crypto gains (only cost of acquisition allowed; surcharge + 4% cess apply).
  2. TDS collected by Government:
    • 2022–23: ₹221.3 cr → transactions ₹22,130 cr.
    • 2023–24: ₹362.7 cr → transactions ₹36,270 cr.
    • 2024–25: ₹511.8 cr → transactions ₹51,180 cr (41%  growth).

Overall:
• Crypto transactions in 2024–25 crossed ₹51,000 cr.

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Crypto Transactions 1% TDS: Impact of the Rule Explained

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