WazirX, the Indian crypto exchange, announced its partnership with Singapore-based Taxnodes on Tuesday, May 2. The purpose of this partnership is to allow WazirX users to calculate their crypto taxes in India and file their taxes on time. The move is aimed at easing investors’ understanding on how taxes on crypto gains are calculated as per Indian laws. While other platforms such as KoinX are already providing crypto tax-related services in South-Asian countries, international players such as Taxnodes are seizing the opportunity to expand their services to India, where crypto profits are taxed at 30 percent. goes.
Tax filing is already a complicated process. crypto investorGiven its inexperience in dealing with taxes on crypto profits, India over the past year has found itself confused about the right way to go in terms of this process.
“Partnership between WazirX Taxnodes will be beneficial in enabling an ecosystem of regulatory compliance and mainstream adoption of crypto without the challenges of tax miscalculation or default, Rajagopal Menon, vice president of WazirX, said in a prepared statement on Tuesday.
In addition to the 30 percent tax imposed by India on all crypto profits, Indians have started seeing a one percent tax deduction on every crypto transaction since last June. This essentially means that one percent TDS is being levied on every step around the purchase, trading and deposit of crypto assets.
In the background of these taxes are being introduced to keep track of the otherwise largely unknown crypto transactionOnly 0.07 percent of Indian crypto owners have actually declared and paid their taxes in the year 2022.
This was published in early April by DivineA Sweden-based tech research firm, which also claimed that just 0.53 percent of owners globally declared their crypto holdings to their local authorities last year.
Since crypto transactions are private and do not disclose information about the sender or recipient of funds, governments around the world fear that these digital assets could be misused by notorious crooks to launder illegal funds and anonymously finance international terror. can be done for
Taxing crypto activities gives regulators some insight into where questionable money may be originating and wired through crypto.
Speaking to Gadgets 360 in December last year, coinex CEO Puneet Agarwal did Said That the Indian government may become more accepting of the crypto sector as a whole as more investors start paying taxes.
in the last nine months TDS The amount collected from crypto tax in India is over $19 million (about Rs 157 crore). Pankaj Chaudhary, Minister of State for Finance in the country, recently disclosed in detail in the Parliament.
It is estimated that India’s crypto circle may grow 156 million users by the end of 2023.
Due to confusion regarding taxes on crypto gains in India, it is worrying that only 100,000 crypto holders declared their holdings and paid the tax amount due in India last year, if Divly’s report is to be believed.
Industry players are looking to increase the number of crypto taxpayers in India, which could usher in more widespread adoption of the new age fintech and investment instruments that are cryptocurrencies.
“We are sure that our end-to-end solution will help the vast client base of WazirX get the much needed clarity on taxes levied on their investments. We are confident that our users will be able to not only calculate but also file their taxes With this, we will be able to ease the taxation journey of every crypto investor in the country,” Avinash Shekhar, Founder & CEO, Taxnodes commenting on the partnership with WazirX. Said.