How to Sell a Large Amount of USDT and Convert to INR in India

Converting USDT (Tether) to INR (Indian Rupees) is a common practice for managing cryptocurrency assets in India. To facilitate this process, here are some reputable cryptocurrency exchanges in India that are registered with FIU-IND and allow the sale of USDT for INR:

• A2ZCrypto
• Zebpay
• CoinDCX

Steps to Selling USDT on a Cryptocurrency Exchange

1. Create an Account: Register on a reputable cryptocurrency exchange in India.
2. Complete KYC Verification: Submit necessary documents, such as your passport or PAN card, to complete the Know Your Customer (KYC) process.
3. Deposit USDT: Transfer your USDT to your exchange wallet.
4. Find the Trading Pair: Go to the trading section of the exchange and find the USDT/INR trading pair.
5. Place a Sell Order: Decide between a market order (selling at the current market price) or a limit order (selling at a specific price).
6. Withdraw INR: After your sell order is executed, the INR will be deposited into your exchange wallet. You can then withdraw the INR to your bank account.

Important Considerations Before Selling USDT in India

• Transaction Fees: Cryptocurrency exchanges charge fees for transactions. Compare platform fees before making a decision.
• Payment Methods: Ensure the platform supports your preferred payment method.
• Security: Choose a reputable exchange with strong security measures to safeguard against fraud.

By following these steps, you can safely and securely sell your USDT in India.

Understanding TDS on Crypto Transactions

The Finance Bill of 2022 introduced a Tax Deducted at Source (TDS) for Virtual Digital Assets (VDA) under section 194S of the Income-Tax Act, 1961. A 1% TDS applies to any payment made for the transfer of Virtual Digital Assets (VDAs). When Buying Crypto with INR

No TDS is required since the transaction is a purchase using INR.

When Selling Crypto for INR

A 1% TDS is deducted on the net value of the sell transaction. For instance, if you sell ?1000 worth of Bitcoin, 1% TDS will be deducted from the selling amount after accounting for exchange transaction fees.

When Selling Crypto with Crypto

A 1% TDS is required on the INR value of the Bitcoin you are selling.

Who Deducts the 1% TDS?

According to the Central Board of Direct Taxes, the exchange will deduct the 1% TDS on the net sale transaction and remit it directly to the government.

Is TDS Applicable for Transactions Under ?10,000?

TDS may not apply if your total transactions (both buy and sell) are under ?10,000 in a financial year. However, each exchange must deduct TDS from the first applicable transaction from July 1, 2022, onwards.

Can You Claim a Refund on 1% TDS?

Yes, you can claim a refund on the 1% TDS when filing your Income Tax Return (ITR) if your total income tax for the year is less than the TDS paid from crypto trading.

By understanding these guidelines, you can ensure compliance with tax regulations while managing your cryptocurrency transactions in India.