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In light of recent developments, we have noticed that users are opting to withdraw their funds to international exchanges. However, in the process, they may unknowingly be non-compliant. International exchanges do not have TDS frameworks in place. Most of them have no visibility over the user's real identity or the scale of transactions. Thus, putting the onus of deducting TDS on the individual, which is nearly impossible. Please note it is mandatory for the buyer (whether resident of India or not) to deduct 1% (5% in some cases) of the amount paid to the Indian seller for transactions more than Rs.10,000.The Central board of direct taxes in a notice dated June 22 mandates a person who is responsible for paying any resident any sum by way of consideration for transfer of crypto to deduct an amount equal to 1% of such sum as income tax thereon.The tax deduction is required to be made at the time of credit of the sum to the account of the resident or at the time of payment whichever is earlier. WazirX has a framework for complying with the TDS as per government notification. We request the users not to panic and take the right decision. Your funds are safe with us 🙏🇮🇳

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