Bengaluru-based crypto investment platform Mudrex has partnered with crypto tax computing platform, KoinX. As part of the agreement between the two companies, Mudrex users in India will be able to file their crypto taxes on time, ahead of the upcoming deadline. In India, buyers have to pay tax on cryptocurrency transactions, including a 1 percent tax deducted at source (TDS). Financial authorities are analyzing the discipline of the Web3 sector, while the government has yet to introduce regulations governing digital assets and cryptocurrencies.
KoinX, Mudrex Crypto Tax Filing Partnership
As part of this partnership, KoinX will offer its dashboard to Mudrex users to generate crypto tax reports. The dashboard is equipped with advanced algorithms to facilitate the crypto tax calculation process for end users, according to the tax calculation platform.
Moving forward, KoinX is experimenting with ITR filing plans to become part of the service portfolio. “The plans are prepared for individuals, investors, companies and professionals. After selecting a tax plan, users receive guidance from a dedicated consultant, simplifying their tax preparation and filing process,” the company announced on Tuesday.
After completing the tax calculation process, KoinX will enable users to download VDA compliant tax returns, which are necessary for filing their ITRs.
“Our mission at KoinX is to simplify crypto tax compliance. This partnership intends to develop a more aligned and satisfied user base, contributing to the overall growth and maturity of the crypto industry in India,” KoinX founder Punit Agarwal said in a prepared statement.
Last December, Agarwal told Gadgets360 that if the Indian crypto circuit continues to show the authorities that it is disciplined in filing tax returns, the government will take a more supportive stance for the growth of the industry.
About India’s tax regime
Crypto earnings are taxed in India, which means crypto owners in India pay 30 percent tax on those earnings. Additionally, crypto traders and investors pay one percent TDS on each transaction, as per existing laws.
Last year, MoS (Finance) Pankaj Chaudhary said that TDS collection from crypto transactions was reportedly $7.4 million (roughly Rs. 60 crore), between June and November 2022. This amount has increased by $11.6 million (roughly Rs. 95 crore rupees) between November 2022 and April 2023, indicating an increase in crypto transactions in India.
Finance Minister Nirmala Sitharaman is yet to respond to protests from the crypto sector, where several industry members have asked the government to reduce taxes on cryptocurrency transactions in the country.
The Tax Law Center, Hyderabad-based NALSAR University of Law and some individual members of the crypto industry recently released a report. Findings from this report suggest that India could bring in Rs. 5,144 crore through capital gains by 2027, if the government changes its cryptocurrency laws.
