Mudrex, a crypto investment platform headquartered in Bengaluru, has entered into a partnership with crypto tax computing platform, KoinX. As part of the agreement between both firms, Mudrex users in India will be able to file their crypto taxes in time, before the upcoming deadline. In India, customers must pay taxes on cryptocurrency transactions, including a 1 percent tax deducted at source (TDS). The financial authorities are analysing the discipline of the Web3 sector, while regulation governing digital assets and cryptocurrencies is yet to be introduced by the government.
KoinX, Mudrex partnership for crypto tax filing
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 ease the process of computing crypto taxes for end users, according to the tax computing platform.
Moving forward, KoinX is experimenting with ITR filing plans to make it part of the service portfolio. “The plans are curated for individuals, investors, enterprises, and professionals. After selecting a tax plan, users receive guidance from a dedicated consultant, streamlining their tax preparation and filing process,” the company said on Tuesday.
After completing the tax computing process, KoinX will let users download VDA-compliant tax reports, which are essential for filing their ITRs.
“At KoinX, our mission is to simplify crypto tax compliance. This partnership intends to develop a more compliant and contented 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 India’s crypto circle keeps showing the authorities that it was disciplined about tax filings, the government make take a more supportive stance for the growth of the industry.
About India’s tax regime
Crypto earnings taxed in India, which means that crypto holders in India pay a 30 percent tax on these incomes. Additionally, crypto traders and investors pay one percent TDS on each transaction, as per existing laws.
Last year, MoS (Finance) Pankaj Chaudhary stated that the TDS collection from crypto transactions reportedly amounted to $7.4 million (roughly Rs. 60 crore), between June and November 2022. This amount spiked by $11.6 million (roughly Rs. 95 crore) between November 2022 and April 2023, indicating a rise in crypto transactions in India.
Finance minister Nirmala Sitharaman has yet to address protests from the crypto sector, where several members of the industry have requested the government to reduce taxes on cryptocurrency transactions in the country.
The Centre for Tax Laws, Hyderabad-based NALSAR University of Law, and some individual members of the crypto industry recently released a report. The findings from this report suggested that India could fetch Rs. 5,144 crores through capital gains by 2027, if the government makes changes to its crypto laws.