Crypto exchange CoinDCX has entered into a partnership with crypto taxation platform KoinX to offer users an infrastructure for filing their cryptocurrency taxes. According to the announcement, investors and traders on the CoinDCX platform will gain access to KoinX’s tax calculation and reporting system.
With this collaboration, CoinDCX users will be able to track their tax computation not only on the exchange but also seamlessly connect multiple exchanges and wallets to the KoinX platform. This functionality enables investors to monitor all their crypto transactions, including investments in NFTs (non-fungible tokens) and DeFi (decentralized finance), and view the corresponding tax amounts in real-time. Additionally, users can download virtual digital asset (VDA)-compliant tax reports required for income tax return (ITR) filing.
Rohit Jain, Managing Director at CoinDCX Ventures, expressed the company’s commitment to simplifying compliance for their users through this partnership with KoinX. The goal is to enhance the customer-centric approach and streamline the tax reporting process for crypto investors.
Punit Agarwal, CEO of KoinX, emphasized their aim to provide CoinDCX users with a one-click crypto tax reporting solution that complies with Indian tax laws. The partnership seeks to empower crypto investors by equipping them with the necessary resources and information to accurately file their taxes and manage their portfolios.
In 2022, the Indian government introduced a tax on investments in virtual digital assets or cryptocurrencies. Income derived from such assets is subject to a 30 percent tax, without the option for a one percent tax deducted at source (TDS). The collaboration between CoinDCX and KoinX aims to support crypto investors in meeting their tax obligations and staying compliant with the regulations imposed by the Indian tax authorities.
This partnership reflects the growing recognition of the importance of tax compliance within the cryptocurrency industry, providing a convenient solution for CoinDCX users to handle their tax reporting and facilitate seamless tax filing.
