The IT department on Wednesday clarified that the TDS on virtual digital assets continues to be 1%. The clarification from the Income Tax comes at a time when earlier in the day some media reports mentioned that the TDS rate for virtual digital assets has been dropped to 0.1% from 1% as announced earlier in the budget.
The 1% TDS will be applicable from July 1.
![IT Department clarifies rate of TDS on VDA continues to be 1 IT Department clarifies rate of TDS on VDA continues to be 1](/img/preview/custom/20210417165253_slabrates.jpg?imgver=21461)
"Some media reports have come to the notice of CBDT claiming that the rate of TDS on Virtual Digital Assets(VDA) has been reduced to 0.1%. It is hereby clarified that there is no change in the rate of TDS on VDA, which continues to be 1%, " read the official clarification.