Tax Deducted at Source (TDS) is an advance tax collected at the source by the government to establish a trail of transactions.
TDS is deducted at the origin of the income (i.e., when a sell order has been executed).
It is deducted by the payer (CoinSwitch) and is remitted to the tax authorities by the payer on behalf of the payee (You, the trader).
Effective 1 July 2022, 1% TDS is applicable on the sale/transfer of virtual digital assets (VDA/crypto).