According to an intimation by the Central Board of Direct Taxes (CBDT) – the tax amount can be deducted by the platform itself under section 194S.
To put it in another way, as a buyer or seller on Mudrex, you wouldn’t have to do anything. We at Mudrex will handle the process. Of course, TDS statements will be shared with you at periodic intervals for your records.
However, the thing you have to note is that the TDS will be deducted from the final withdrawal amount and not just on the profits. This is because, in the case of TDS, it doesn’t matter if you earn a profit or book a loss on your trade. It will be deducted, no matter what.
1% TDS SAMPLE CALCULATION
Let’s take an example. Say you withdraw funds from your account worth 15 USDT today. Now, in this case, the 1% TDS would be deducted on the withdrawal amount. Take a look at the table below for a better understanding -