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Trading USDT for INR on SRD Exchange may have tax implications under Indian law. This page provides a general overview of the 30% crypto gains tax and the 1% TDS (Tax Deducted at Source) that apply to virtual digital asset transactions in India. Because SRD Exchange is a no-KYC platform, the responsibility for understanding and complying with your tax obligations rests entirely with you.
This page is for informational purposes only and does not constitute tax advice. Tax rules are subject to change and their application depends on your individual circumstances. Consult a qualified tax professional for advice specific to your situation before filing or making any tax-related decisions.
Yes. Under Indian tax law, USDT is classified as a Virtual Digital Asset (VDA). Any profit you make from trading VDAs — including exchanging USDT for INR — is a taxable event. This applies regardless of whether the trade is conducted on a centralised exchange, a P2P platform, or any other venue.You are required to report your crypto trading income when filing your annual Income Tax Return (ITR). Failure to do so may result in penalties, interest, or scrutiny from the Income Tax Department.
From the Financial Year 2022–23 onwards, gains from the transfer of any Virtual Digital Asset are taxed at a flat rate of 30%, plus applicable surcharge and health and education cess (currently 4%), regardless of how long you held the asset.Key points to be aware of:
  • The 30% rate applies to the profit (sale proceeds minus acquisition cost), not the full sale amount.
  • You cannot offset crypto losses against gains from other sources of income.
  • You cannot carry forward crypto losses to future years to offset future gains.
  • No deduction is allowed for expenses (other than the cost of acquisition).
Under Section 194S of the Income Tax Act, a 1% TDS applies to payments made on the transfer of Virtual Digital Assets above specified thresholds:
  • ₹50,000 per financial year for specified persons (individuals filing under presumptive taxation or whose turnover is below prescribed limits)
  • ₹10,000 per financial year for all other taxpayers
In a typical P2P trade where you are the seller of USDT receiving INR, the buyer is technically required to deduct 1% TDS before paying you and deposit it with the government. In practice, enforcement on decentralised P2P platforms is limited, but the legal obligation exists.You should account for any TDS that was or should have been deducted when filing your ITR, and claim credit for TDS already deposited on your behalf where applicable.
No. SRD Exchange is a no-KYC platform and does not withhold TDS, file tax reports, or submit transaction data to the Income Tax Department or any other government authority on your behalf.This means you are solely responsible for:
  • Calculating and reporting your gains from USDT/INR trades
  • Accounting for TDS obligations under Section 194S
  • Filing the correct ITR form and paying any tax due by the applicable deadline
The absence of reporting by SRD Exchange does not exempt you from your legal tax obligations under Indian law.
Because SRD Exchange does not generate tax reports for you, maintaining your own records is essential. For every trade you complete, consider saving:
  • The date and time of the trade
  • The amount of USDT sold or purchased
  • The INR amount received or paid
  • The effective exchange rate
  • Screenshots of completed trade confirmations
  • UPI transaction references or CDM deposit receipts
  • Wallet transaction hashes from the BSC blockchain
A simple spreadsheet tracking each trade is sufficient for most users. You can also use third-party crypto tax tools that import on-chain transaction data from your wallet address to help calculate your gains automatically.
SRD Exchange is a no-KYC platform and does not report transactions to tax authorities. However, you remain personally responsible for complying with Indian tax law. When in doubt, seek advice from a qualified chartered accountant or tax professional familiar with cryptocurrency taxation in India.