KuCoin India has announced the implementation of a 1% Tax Deducted at Source (TDS) on crypto transfers starting April 10, 2024, aligning with local tax laws to ensure transparency for users. The exchange’s move follows its successful registration with India’s Financial Intelligence Unit (FIU).
In adherence to Indian Income Tax Department guidelines, KuCoin will deduct TDS from users’ transactions and remit the tax directly to authorities. This deduction applies to various trading activities, excluding purchases in the INR/Crypto market.
The TDS rate for most transactions is 1%, with a potential additional 5% for specific scenarios outlined in section 206AB of the Income Tax Act, 1961. Users can track TDS deductions from completed order history or request a full trade report from the exchange, promoting financial record accuracy and transparency.
KuCoin emphasizes user asset security and privacy protection, operating as a global platform within international compliance laws.
While the introduction of TDS has sparked mixed responses from Indian users, KuCoin’s compliance with local tax regulations underscores its commitment to transparent and regulated cryptocurrency markets in India. Despite regulatory challenges globally, including accusations and lawsuits, KuCoin continues to adapt its services to evolving regulatory landscapes, aiming to maintain operational resilience and user trust.
