Jai Sahu
Mudrex, a Bengaluru-based cryptocurrency investment platform, has partnered with the crypto tax computing platform KoinX. Through this collaboration, Mudrex’s users in India can efficiently manage their crypto taxation filings before the looming deadline. In India, crypto transactions attract a 1 percent tax deducted at source (TDS), and the finance authorities are closely monitoring the Web3 domain, awaiting official regulations for digital assets and cryptocurrencies.
New Alliance Between KoinX and Mudrex for Easier Crypto Tax Filing
Under the new alliance, Mudrex users will access a KoinX dashboard designed to simplify the generation of crypto tax reports. This dashboard incorporates sophisticated algorithms to streamline tax calculations for users, as stated by KoinX.
Looking ahead, KoinX plans to incorporate ITR filing into its services. “The plans are tailored for different user groups including individuals, investors, businesses, and professionals. Once a plan is chosen, users are assisted through the entire tax preparation and filing journey by a dedicated consultant,” the firm announced on Tuesday.
Once the tax calculations are finalized, KoinX enables users to download VDA-compliant tax reports, which are crucial for their ITR submissions.
“Our goal at KoinX is to make crypto taxation compliance straightforward. This partnership aims to build a compliant and satisfied clientele, fostering growth and maturity in India’s crypto sector,” stated Punit Agarwal, founder of KoinX, in a formal statement.
In December last year, Agarwal expressed to Gadgets360 that displaying disciplined tax compliance might encourage the government to support the crypto industry’s expansion more actively.
Overview of India’s Tax Regulations on Cryptocurrency
Earnings from crypto are taxable in India, with crypto holders subjected to a 30 percent tax on these earnings. Moreover, each crypto transaction incurs a one percent TDS under current legislation.
In 2022, MoS (Finance) Pankaj Chaudhary disclosed that the TDS from crypto transactions was about $7.4 million (approximately Rs. 60 crore) from June to November. This figure increased to $11.6 million (approximately Rs. 95 crore) from November 2022 to April 2023, indicating a growth in crypto trading activities in India.
Finance Minister Nirmala Sitharaman has not yet responded to the appeals from the crypto community, which has been advocating for lower taxes on crypto transactions in India.
A recent report by the Centre for Tax Laws at NALSAR University of Law, Hyderabad, along with certain crypto industry members, suggests that amending the crypto tax laws could potentially generate Rs. 5,144 crores in capital gains by 2027.