If I pay 1% TDS, should I also have to pay the 30% tax on crypto assets?

Modified on Fri, 08 Jul 2022 at 01:09 PM

Under income tax regulations, 30% tax is applied to Crypto profits. But this tax, together with the overall income tax payable based on your other sources of income, may be adjusted to deduct TDS by BuyUcoin.

Let’s take an example –

Tushar has bought bitcoin at a price of INR 50,000 and qty 1 BTC at the start of fiscal year. Tushar saw that market is going down and hold its investment in the hope that in sometime market will go up. Eventually around the end of fiscal year, market comes to green and Tushar decided to sell his bitcoin at a price of INR 1,50,000. 

Buying Price of Bitcoin - INR 50,000 

Quantity Bought - 1 BTC

Selling Price of Bitcoin - INR 1,50,000

Selling quantity - 1 btc

INR created - 150000

TDS Applicable – 1%

TDS Amount deduction – INR 1,500

INR received after TDS deduction - 1,48,500

Profit Gain – INR 1,00,000

Tax of Profit Gain – 30%

Tax Amount liable to pay – 30% of INR 1,00,000 = INR 30,000

Tax paid under TDS = 1,500

Final remaining tax liability at the end of the year = 28,500

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select atleast one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article