Section 194S of the Income-Tax Act requires that a 1% tax be deducted as TDS before transferring Virtual Digital Assets (VDA). In this case, you must deduct and maintain 1% of the transaction value as TDS as an Indian citizen (or the exchange facilitating this transaction). This realised tax must be paid to the government in addition.
As a result of the section 194S:
a) Flitpay is required to deduct TDS on behalf of a Flitpay user who is an Indian resident and who sells crypto for INR or buys or sells cryptocurrency for another cryptocurrency on the Flitpay exchange.
b) TDS will be applied to cryptocurrency withdrawals/transfers from the Flitpay wallet to a blockchain wallet in exchange for money or any other form of consideration.
With this, whenever you transfer your assets from Flitpay to any outside wallet, you will require to give us a due confirmation. You will need to confirm that the destination wallet is your own or of an Indian third party and you have not exchanged money or any other consideration for the transfer.
With this context, an Indian user will find a declaration checkbox on the withdrawal screen every time he/she withdraws crypto from Flitpay. The "Make Withdrawal" button will only become active if you select the checkbox.
This declaration is only applicable to an Indian user. Hence others will not see the checkbox.