TDS on Crypto: What It Is and How It Affects Your Crypto Earnings
When you earn or trade cryptocurrency, TDS on crypto, a tax deducted at source by exchanges or platforms before you receive your earnings. Also known as Tax Deducted at Source, it’s not a separate tax—it’s an advance payment on your crypto income, collected before you even see the money. In countries like India, this rule applies to almost every crypto transaction: selling, swapping, or even receiving rewards from staking or airdrops. If you’re earning crypto, someone is likely withholding a portion of it for the government before it hits your wallet.
TDS on crypto isn’t just about selling Bitcoin. It touches everything: when you cash out USDT on an Indian exchange, when you earn interest from a crypto lending platform, or even when you get tokens from a new project’s reward program. The crypto tax, the broader system that includes TDS, capital gains, and income reporting is now tightly linked to how exchanges operate. Platforms like WazirX or CoinDCX don’t just track your trades—they’re legally required to deduct 1% (in India) before paying you out. This isn’t optional. It’s built into the system. And if you’re using offshore exchanges, you might think you’re safe—but tax authorities are catching up, and your transaction history can still be traced.
The crypto income tax, the tax applied to earnings from crypto activities like staking, mining, or airdrops is where things get messy. Many people think if they don’t sell, they don’t owe tax. But TDS changes that. Even if you hold onto your staking rewards, the moment they’re credited, TDS may have already been taken. That means your actual earnings are lower than what you see on your dashboard. And while some countries don’t enforce TDS yet, others—like India, South Korea, and parts of Europe—are tightening rules fast. If you’re trading or earning crypto seriously, you need to treat TDS like a cost of doing business, not an afterthought.
What you’ll find in the posts below are real cases where TDS on crypto made a difference—like how Brazilian traders handle their 17.5% capital gains tax, or how Russian users navigate crypto restrictions while still earning. You’ll see how Nigeria’s new crypto laws impact reporting, and why platforms like Swyftx and MyCoinStory aren’t just about fees—they’re about compliance. These aren’t theoretical guides. They’re snapshots of what’s happening now, on the ground, in real wallets. Whether you’re trying to understand why your reward was smaller than expected, or how to file taxes after trading, the answers here are based on actual rules, not guesses.