CoinDCX partners with KoinX to allow crypto tax tracking on its platform

Crypto exchange CoinDCX on Monday announced a partnership with crypto taxation platform KoinX to provide an infrastructure enabling users to file their crypto taxes on its platform. According to the company's announcement, investors and traders on the CoinDCX platform will have access to KoinX's tax calculation and reporting system.

"CoinDCX users will not only be able to track their tax computation on the CoinDCX exchange but also effortlessly connect multiple exchanges and wallets to the KoinX platform. This will enable investors to track all their crypto transactions, including NFTs and DeFi investments, and view the corresponding tax amount in real-time," the company said.

"They can also download all the necessary virtual digital asset (VDA)-compliant tax reports for ITR filing," it added.

Commenting on the partnership, Rohit Jain, managing director at CoinDCX Ventures, said, "Through this partnership with KoinX, we are taking our customer-centric approach to the next level by simplifying compliance for our users."

Punit Agarwal, chief executive officer (CEO) of KoinX said, "Through this partnership, our primary goal is to offer CoinDCX’s users a one-click crypto tax reporting solution fully compliant with Indian tax laws, enabling us to serve millions of users. We aim to empower crypto investors with the resources and information they need to accurately file their taxes and manage their portfolios."

In 2022, the Centre announced a tax on investments in virtual digital assets or cryptocurrencies. Any income gained from such assets is not subject to a one per cent tax deducted at source (TDS) and a 30 per cent tax.

CoinDCX also said that it anticipates a "significant" number of users benefiting from KoinX’s tax assistance services.

"With this partnership the users will get much-needed clarity on the taxes levied on their investments, hence establishing themselves as a one-stop-shop for all VDA needs," it said.