Binance News: Indian Users Face Tax Scrutiny Over TDS Compliance on Crypto Transactions

In a significant development for the cryptocurrency market in India, users of the world’s largest crypto exchange, Binance, have received tax notices from the Income Tax (I-T) department. The notices are part of an investigation into whether the 1% Tax Deducted at Source (TDS) on crypto transactions has been properly collected and remitted.

Crypto News: Binance Users in India Receive Tax Notices Over TDS Compliance

Many Indians trading on the world’s largest crypto exchange, Binance, have received tax notices. The Income Tax (I-T) department is investigating whether the 1% Tax Deducted at Source (TDS) levied on crypto transactions has been properly collected. Local investors have been required to provide proof of TDS deduction or submit documentary evidence explaining why TDS is not applicable to their transactions. Income from cryptocurrencies is taxed at 30%, along with a 1% TDS on transactions, under the 2022 budget provisions.

Crypto Tokens Plunge on Binance Amid Suspected Trading Bot Glitch

Multiple crypto tokens, including Act I, the Prophecy (ACT), DEXE (DEXE), and dForce (DF), cratered as much as 50% within 30 minutes on Binance on Tuesday. market watchers speculate that a misconfigured trading bot could have caused the declines. The tokens are not related and showed a surge in selling volumes simultaneously. The cascade spread to other exchanges as well. No immediate catalyst or explanation was provided for the sudden fall.