India TDS Deduction, Tracking, and FAQ
TDS Deduction:
When you trade on KuCoin, if both your (i) KYC identification; and (ii) IP address are from the Republic of India, you may be considered an Indian Taxpayer and may be subject to Indian Tax Law.
In this case, you are required to provide your Permanent Account Number (PAN) to KuCoin. Please note that it is mandatory to provide your PAN to us as we will deduct the TDS on your behalf and transfer it to the Income Tax Department in the form of INR. If you have not provided your PAN to KuCoin, please click here.
TDS is applicable when you sell in the INR/Crypto market, buy/sell in the Crypto/Crypto market & sell in the P2P market. TDS is not levied when you buy in the INR/Crypto market.
The following table illustrates when TDS will be levied on your transaction.
|
Markets |
Crypto/INR |
Crypto/Crypto |
P2P |
|||
|
Order Type |
Buy |
Sell |
Buy |
Sell |
Buy |
Sell |
|
TDS Rate |
NA |
1% |
1% |
1% |
NA |
1% |
Note:
Ⅰ. As per Section 206AB of the Income-Tax Act, 1961, if you satisfy both conditions as an Indian Taxpayer but have not filed your Income Tax Return in the last 2 years, and the amount of TDS is ₹50,000 or more in each of these two previous years, then the TDS to be deducted (for Crypto-related transactions) will be at 5%.
Ⅱ. If you satisfy both conditions as an Indian Taxpayer but fail to provide your PAN to KuCoin, then the TDS to be deducted (for Crypto-related transactions) will be at 20%.
TDS Tracking:
To check the TDS deducted for a particular trade, you can go to your completed order history. You will be able to view the amount deducted as TDS.
To check your entire history of TDS deduction, you will have to download your trading report.
FAQs:
1. What happens if I do not wish to provide my PAN?
Under the Indian Tax Law, a higher TDS rate of 20% should be imposed if both your (i) KYC identification; and (ii) IP address are from the Republic of India, but you have not provided KuCoin with your PAN.
However, on KuCoin’s platform, if you refuse to provide your PAN, you will not be allowed to trade or use KuCoin’s services which would attract TDS.
Please click here to provide information on your PAN.
2. I don’t have a PAN. Where do I get one?
There are multiple ways to obtain your PAN. Depending on your circumstances, you may apply for PAN offline at the nearest PAN centre to you, or online via the following links:
Instant E-PAN via the Income Tax portal;
NDSL website; or
3. Where can I see the TDS deducted from my trades?
You can check the TDS deducted on the order details page. Please be patient as the updates on trading report may only be reflected after 48 hours.
4. When does a high TDS rate applicable?
High TDS rate of 5% will be applicable if these conditions are met:
(a) you’ve not filed ITR in the last 2 years; and
(b) the amount of TDS is ₹50,000 or more in each of these two previous years.
A higher TDS rate of 20% would also be imposed if both your (i) KYC identification; and (ii) IP address are from the Republic of India, but you have not provided KuCoin with your PAN.
5. Is TDS applicable on Crypto Withdrawals/Transfers?
There is no TDS applicable on Crypto Withdrawals or Transfers. TDS is applicable only when Crypto is bought or sold.
6. How can I claim my TDS if I am not subject to TDS?
You can claim the TDS deducted in crypto trades when you file ITR for that financial year. Total TDS collected will be visible on the ITR form. Please refer to the latest tax legislation and regulation for tax refunds available to you.
7. I have foreign KYC, is TDS applicable for me?
TDS is applicable only for Indian users. No TDS will be levied for users with foreign (non-Indian) identifications.
8. How do I check TDS details on the Income Tax platform?
Please visit https://www.tdscpc.gov.in/app/login.xhtml. Log in using your PAN details and check the TDS details. If you are a new user, select Register as a new user.
Select View/Verify Tax Credit > Select View Form 26AS > Select Assessment Year > Select View/Download.
The TDS details for the trades done on KuCoin will be visible under the Name of Deductor as Peken Global Limited.
9. What is the Total Amount Paid/Credited section under Peken Global Limited in my Form 26AS?
The Total Amount Paid/Credited would be the volume of trades done on KuCoin where TDS was deducted.
10. Why is the TDS deducted on KuCoin not shown in my Form 26AS?
While we work tirelessly to make sure that your TDS deductions are updated on the Income Tax platform in the shortest time possible, it can take up to 45-60 days after the financial quarter has ended for the details to reflect in your Form 26AS.
11. Would my Form 26AS show my profit/loss received while trading?
No, Form 26AS would only show you the volume of trades done on KuCoin where TDS was deducted.