KuCoin India Introduces 1% TDS on Crypto Transfers

KuCoin India Introduces 1% TDS on Crypto Transfers

KuCoin India Introduces 1% TDS on Crypto Transfers

KuCoin has announced a significant upgrade of a 1% Tax Deductible at Source (TDS) on crypto transfers starting April 10

KuCoin India Trader to Get Tax Break

KuCoin has stated that it would impose a 1% tax Deduction at Source (TDS) for its Indian consumers. This breakthrough comes after effectively registering the exchange’s Financial Intelligence Unit (FIU) in the nation.

The platform would impose TDS on transferring Virtual Digital Assets (VDA) from April 10, 2024, following the Indian government’s standards.

According to the norms of the Indian Income Tax Department, KuCoin would reduce TDS for its customers and pay the deducted tax straight to the authorities. 

What is the Update about?

This deduction applies to various trading operations, including selling in the INR/Crypto market, buy-sell transactions in the Crypto/Crypto market, and selling in the P2P market. The exchange said that INR/Crypto market purchases would not be subtracted.

The deduction rate for most transactions is 1%. Nonetheless, under section 206AB of the Income Tax Act of 1961, an extra 5% tax may be payable in certain situations. This rule applies if the user has not filed an Income Tax Return in at least two years and the TDS amount in each of those two years exceeds ₹50,000.

Concurrently, in terms of user privacy concerns, KuCoin assures its consumers that the security of their assets and privacy are the most important. Furthermore, the exchange claimed to operate as an offshore global platform, following existing international compliance rules.

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