Indian crypto traders get a tax break from KuCoin – What it means

Indian crypto traders get a tax break from KuCoin – What it means - African News - News

Man, things just got really interesting for Indian traders. KuCoin just announced a major update effective April 10th – a 1% Tax Deductible at Source (TDS) on the proceeds from Virtual Digital Assets (VDA) transactions.

This has the Indian crypto community sitting up and taking notice.

The tax deducted will find its way to the Income Tax Department, paid in Indian Rupees (INR). This new tax rule is a big deal, because it makes things clearer for folks who’ve been scratching their heads over how crypto transactions are taxed in India.

TDS: The Nitty-Gritty

Here’s the lowdown:-

Selling in INR pairs, or buying and selling in crypto-to-crypto pairs on KuCoin? Get ready for a 1% TDS deduction.

Buttttt, if you’re just depositing or withdrawing crypto, or dabbling in futures, breathe easy – no TDS for you. This kicks in exactly two days from now. But, there’s a twist. Fail to file your income tax return for the last two years with a TDS of 750,000 or more? That 1% jumps to a whopping 5%!

Now, for those thinking they can sidestep this by using foreign KYC or sticking to futures trading, you’re in luck. TDS won’t touch you. But, NRIs with Indian KYC, sorry, you’re not off the hook. KuCoin’s got your number, and they think it’s time for a change.

For real, though, if you’re not an Indian user, you can chill. No TDS for you.

Trading, Depositing, and More in INR

Heads up, traders! INR trading pairs might be on the horizon for KuCoin. This could mean more trading options and deeper liquidity for Indian investors. Now we’re all waiting for official word on this.

At the same time, KuCoin’s talking to banks to smooth out the INR deposit and withdrawal process. P2P trading is already happening, but they’re hinting at safer, more direct ways to move your money. A big move, considering the risks tied to P2P transactions on any platform.

KuCoin’s also in the news for their take on data sharing with the Indian government. They’re all about judicial evidence collection (JEC) – think crimes like money laundering or cyberattacks. They’re saying yes to sharing data, but only through the proper international channels and laws. Old trading data? Safe. But anything after FIU registration is fair game.

They’re adamant that they’re sticking to local regulations without spilling your secrets. The message? “Your trading history is safe, guys. But let’s play by the rules.”