Crypto TDS Threshold: What It Is and How It Affects Your Trading

When you trade cryptocurrency, crypto TDS threshold, the income level at which tax is automatically deducted at source on crypto transactions. It's not a suggestion—it's a legal requirement in countries like India, South Korea, and others tightening their grip on digital asset flows. If you hit that threshold, exchanges or platforms must withhold a percentage of your trade value before it hits your wallet. This isn't about income tax—it's about crypto tax compliance, the process of meeting government reporting and withholding rules for digital asset transactions. And if you ignore it, you risk account freezes, penalties, or even audits.

The TDS on crypto, the automatic tax deduction applied to crypto trades above a set value varies by country. In India, it’s 1% on trades over ₹50,000 per year. In South Korea, while not called TDS, similar rules apply with 20-49.5% taxes on gains and staking rewards—making every trade traceable. These rules are part of a global trend: governments are no longer waiting for you to file a tax return. They’re watching your transactions in real time through exchange reporting, blockchain analytics, and international data sharing under crypto reporting rules, the standards that require exchanges to share user transaction data with tax authorities. The FATF Travel Rule, OFAC sanctions, and local tax laws are all connecting the dots between your wallet and your tax ID.

What does this mean for you? If you’re trading on centralized exchanges in regulated markets, you’re already being watched. Even if you think you’re hiding behind a VPN or using a non-KYC platform, your on-chain activity can still be linked back through wallet clustering, IP tracking, or bank deposits. The German crackdown on Russian exchanges, South Korea’s looming 2027 tax rules, and China’s bank blocks on crypto withdrawals all show the same thing: anonymity is fading. The crypto TDS threshold isn’t just a number—it’s a line in the sand. Cross it without understanding the consequences, and you’re not just risking money. You’re risking access to your own assets.

Below, you’ll find real-world examples of how countries are enforcing these rules—whether it’s through exchange shutdowns, tax hikes, or surveillance systems. No theory. No fluff. Just what’s happening right now—and how to stay ahead of it.