Based on recent events and the announcements made by Binance, we have made the following changes:
- Effective from 11th August 2022 7:30 AM IST, WazirX will cease to support off-chain fund transfers between WazirX and Binance via the "Login with Binance" option.
- Users will still be able to deposit and withdraw balances via the standard on-chain withdrawal and deposit process.
- Users who use 'Login via Binance' can continue to login to the WazirX exchange by using the 'Forgot Password’ option to reset the password and entering same email as the email on their Binance account
- WazirX will continue to explore additional options to expand the scope of on-chain deposits and withdrawals.
Please note - For those withdrawing crypto to international exchanges, most of these exchanges do not have a TDS framework in place. Also, many of them have no visibility over the user's real identity or the scale of transactions. Thus, putting the onus of deducting TDS on the individual, which is nearly impossible.
As per section 194S of Income Tax Act, it is mandatory for the buyer (whether a resident of India or not) to deduct 1% (5% in some cases) of the amount paid to the Indian seller for transactions more than Rs.10,000.The Central board of direct taxes, in a notice dated June '22, mandates a person who is responsible for paying any resident any sum by way of consideration for transfer of crypto to deduct an amount equal to 1% of such sum as income tax thereon.The tax deduction is required to be made at the time of credit of the sum to the account of the resident or at the time of payment whichever is earlier.
WazirX has a framework for complying with the TDS as per government notification. We request the users not to panic and take the right decision.
Thank you for your support,
Risk warning: Cryptocurrency trading is subject to high market risk. Please make your trades cautiously. WazirX will make best efforts to choose high-quality coins, but will not be responsible for your trading losses.