LatestIncome Tax 28 October 2026
India's 1% XRP TDS Threatens Trading Liquidity for Active Traders
India's 1% tax deducted at source (TDS) on XRP transfers cuts cash for the next trade, hurting active traders who need fast liquidity. Funds stay idle until tax is paid, thinning market depth and raising costs for crypto users.
According to CAclubindia, India now applies a 1% TDS on every XRP transfer. The tax is deducted before the buyer receives the funds, meaning the amount available for the next trade is reduced.
- Active traders lose immediate liquidity, as cash sits idle until the tax is settled.
- Thinner market depth can increase price slippage and overall transaction costs for crypto participants.
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