Sell USDT Without P2P? Here's the Catch
36sDirectly addresses a common pain point for Indian crypto users and promises a solution, sparking curiosity.
▶ Play ClipAI Summary
The video explains how to sell USDT in India without using P2P platforms, highlighting the trade-offs between direct bank withdrawals and crypto withdrawal flexibility. It covers platform options like CoinDCX and Mudrex, and details the tax implications, including 1% TDS and 30% tax on the full amount.
Chapters
[00:02]
Two user categories
There are two types of users: those who need direct USDT-to-bank functionality without P2P, and those who want the option to withdraw USDT to another platform.
[00:36]
Platform limitation
No single platform in India offers both direct bank withdrawals and crypto withdrawals; users must compromise on one.
[01:03]
P2P platforms
Binance and Bitget allow P2P selling and crypto withdrawals, but require using P2P.
[01:18]
Direct selling platforms
CoinDCX and Mudrex allow direct USDT selling without P2P, but lack crypto withdrawal options.
[01:33]
Tax implications
Selling USDT on CoinDCX or Mudrex incurs 1% TDS and 30% tax on the entire amount.
[02:14]
Personal experience
The speaker paid around ₹65,000–71,000 in crypto tax on a ₹7,000–8,000 USDT transaction, illustrating the heavy tax burden.
Mentioned in this Video
Study Flashcards (5)
Which platforms allow selling USDT directly to a bank account in India?
easy
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Which platforms allow selling USDT directly to a bank account in India?
easy
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CoinDCX and Mudrex allow direct selling of USDT to your bank account without P2P.
01:18
What is the TDS rate on selling USDT in India?
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What is the TDS rate on selling USDT in India?
easy
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1% TDS is deducted at the time of selling USDT on platforms like CoinDCX or Mudrex.
01:33
What is the tax liability on the full USDT amount?
medium
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What is the tax liability on the full USDT amount?
medium
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30% tax is applied on the entire USDT amount sold.
01:48
What is the main trade-off when using CoinDCX or Mudrex?
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What is the main trade-off when using CoinDCX or Mudrex?
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You lose the ability to withdraw crypto to another platform.
00:36
Which platforms offer both P2P selling and crypto withdrawals?
medium
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Which platforms offer both P2P selling and crypto withdrawals?
medium
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Binance and Bitget offer P2P selling and crypto withdrawals.
01:03
💡 Key Takeaways
💡
No single platform offers both features
Highlights a key limitation in the Indian crypto market, forcing users to prioritize either convenience or flexibility.
00:36
📊
1% TDS on all sales
A concrete tax rule that directly impacts net returns, essential for financial planning.
01:33
📊
30% tax on entire amount
Clarifies the full tax burden, which is often misunderstood by casual sellers.
01:48
💡
Real-world tax example
A personal anecdote that makes the tax implications tangible and relatable.
02:14Full Transcript
[00:02] want to sell them and move them to your bank account. But if you don't want to use pee to puppy then you can do this. But you might not like the method that is there that much. Ok? There are two types of users in India. First, users who simply
[00:19] need the functionality to have USDT and sell it to their bank account without any P2P. For the second category of users, if I ever need to, I can withdraw my USDT and take it to another platform.
[00:36] Basically, the crypto withdrawal option should also be enabled. So, at present, it is difficult to get both these things on any single platform in India.
[00:49] you have to compromise on one of the two things. Or you will have to sell USDT through P2P. If you are interested in this, you have platforms like Binance and BitCoin where you can sell USDT from Pi to Pi and
[01:03] you can see crypto withdrawals. But if you don't want to touch P2 at all, then you have to compromise on the crypto withdrawal option here. In such a situation, you have platforms like Coin DCX mdrax
[01:18] in which you can deposit your USDT and then by going there you will be able to sell your USDT. There will be no name or trace between P to P. Here selling will happen directly from your platform. But there are a few other things you should keep in mind.
[01:33] Now like there is mdrax platform, there is coin dcx platform. Here, whenever you sell your USDT, you have to pay 1% TDS at the time of selling. This means that you have to pay 1% TDS at the time of selling. This means that you have a 30% tax liability. Let's
[01:48] assume that you brought USDT worth 500 from somewhere else to CoinDCX or mdrax and you sold it, then your full 1% TDS will be levied on
[02:00] your full 1% TDS will be levied on that USDT worth 500 and then you have to pay 30% tax on that entire USDT amount of 500. I am telling you from my experience because this exactly happened to me too.
[02:14] I brought my USDT to the CoinDCx platform and sold it directly there and you might be surprised to know that I had to pay might be surprised to know that I had to pay
[02:30] 30% tax on the entire amount of 700800 USDT due to which I had to pay a crypto currency tax of around Rs 65 to 71000, on due to which I had to pay a crypto currency tax of around Rs 65 to 71000, on
