Starting 1st of April 30% tax on income from crypto and other virtual assets will come into effect and 1% TDS will come into effect from 1st of July. I am not sure whether the tax will be charged by the Indian crypto exchange or a user has to separately pay it. Does anyone here have the answers? If yes then, please reply here.
There is no official guidelines available till date. However, if the exchange is deducting the TDS, that should reflect in your 26AS form. That will give our government an idea on how much value you have transacted. Crypto exchanges will no be deducting 30% taxes, it's highly unlikely! So you have to keep track of all your crypto to fiat transactions. That 1% TDS will help you match you taxes with the calculation.
For example, you see that crypto exchanges have deducted 1000 rupees TDS in the entire financial year as per 26AS form. That means, your taxable crypto transaction value must be 100,000 rupees. So you are expected to pay 30,000 in crypto taxes.