Do you trade or deal in cryptocurrencies or other virtual digital assets on a regular basis?
If you answered yes, you already know that you must pay taxes on your trades and must be aware of KoinX India.
But how is cryptocurrency taxed in India? How much profit are you required to pay? What about airdrops, minting, mining, or non-fungible tokens (NFTs)? What about cryptocurrency donations?
All of these events and scenarios necessitate a thorough understanding of India’s crypto ecosystem. This tutorial will address all of your queries about India’s tedious and hostile crypto taxation policies.
A New Platform for Crypto
An India Crypto Tax Startup KoinX Wallet has purchased Crypto Kanoon, a Crypto legal awareness and analytics platform.
Founded in 2018 by advocate Mohammad Danish and Kashif Raza, Crypto Kanoon has led several educational activities, including videos on legal analysis and breaking down major regulatory changes, which Kashif Raza has presented on their YouTube channel and Twitter handle.
Along with Coin Crunch, Crypto Kanoon has already produced a series of movies on cryptocurrency taxation with various famous chartered accountants and legal consultants in India.
KoinX India will gain consumers for their crypto tax solution by using the crypto kanoon community. Crypto Kanoon now has over 85000 Twitter followers, while its inventor, Kashif Raza, has over 92k followers on the microblogging site.
As the Indian tax season approaches, this could be a wonderful way for KoinX to get consumers. The deadline for filing an income tax return is July 31, 2022, which will almost certainly be extended.
This partnership will position KoinX as the leader in the Crypto Tax space, as we will have active community participants who are also our potential customers.
In India, How is Cryptocurrency Taxed?
There was no taxation on cryptos and similar virtual assets until this year.
However, things changed with India’s 2023 Financial Budget, when the government passed a bill that taxed cryptocurrency.
India regards cryptocurrency as a virtual digital asset that is highly taxed. This implies you’ll have to pay a 30% tax on any earnings you make from trading cryptocurrencies.
The Bitcoin Tax
The 2023 Indian Financial Budget presented us to a quite high tax rate on bitcoin. This 30% tax rate is applicable to the following items:
Cryptocurrency Trading with INR
Using cryptocurrency to purchase products or services.
Even while the 30% tax rate applies to crypto selling, trading and spending, there are numerous other events that are taxed differently.
Some transactions are treated as income by the Income Tax Department, which means you must pay tax at the Individual Tax Rate at the time of receipt.
Among these transactions are:
- Cryptocurrency gifts
- Bitcoin mining
- Getting paid with cryptocurrency
- Airdrops for staking cryptocurrency
How Can KoinX India Help You With Your Tax filing?
KoinX is a comprehensive taxation tool that works seamlessly with your favourite exchange(s) and provides a thorough report on your tax responsibilities.
KoinX, which was launched in 2022, is one of the most complete crypto tax calculation tools, designed for both customers and crypto tax consultants.
KoinX India is on its way to become one of fastest-growing crypto taxation platforms, thanks to its straightforward exchange integration and wide range of capabilities.
Because you can quickly forward this information to your tax advisor, who helps you file your taxes, the option of importing tax data gives you a tiny advantage over other platforms on this list.
KoinX, which is beginner-friendly and has a wealth of resources, operates in a few simple steps:
Download transaction information from your favourite exchange(s).
Upload these transactions’ CSV files to KoinX.
Get a complete report on your transactions and tax obligations.
Begin utilising KoinX for a more efficient tax calculation.
What’s the best part?
Sign up, integrate, and you’ll be computing your crypto taxes in minutes.
- The new tax calculator widget from KoinX promises to make tax reporting for cryptocurrency transactions easier.
- By delivering a value-added service that can improve user engagement and loyalty, the new tool will help not only cryptocurrency investors, but also exchanges, crypto projects, and accountancy and tax preparation services.
- KoinX India new tax calculator widget will assist raise awareness in the cryptocurrency business about the necessity of tax compliance, encouraging more users to comply with tax legislation and adding to the industry’s credibility.
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