CoinDCX, a major cryptocurrency exchange, revealed a strategic partnership with KoinX, a cryptocurrency taxation platform, this Monday. The move will integrate an infrastructure on CoinDCX's platform that enables users to manage and file their cryptocurrency-related taxes efficiently.
With the latest collaboration, investors and traders using CoinDCX will have direct access to KoinX's comprehensive tax calculation and reporting system. This new feature will not only streamline the tax computation process but also provide users with real-time visibility of the tax implications resulting from their cryptocurrency transactions.
The robust integration will provide CoinDCX users with the flexibility to connect multiple exchanges and digital wallets seamlessly to the KoinX platform. This enhanced interoperability will ensure investors can keep track of all their cryptocurrency transactions across different platforms, ranging from conventional crypto trades to investments in Non-Fungible Tokens (NFTs) and Decentralized Finance (DeFi). Users will also have the added benefit of real-time visibility into their corresponding tax liabilities.
In addition to tracking, the partnership will offer users the capability to download all necessary virtual digital asset (VDA)-compliant tax reports needed for Income Tax Return (ITR) filings. This feature will considerably simplify the tax filing process, ensuring compliance with existing regulations.
Rohit Jain, Managing Director at CoinDCX Ventures, expressed his views on the partnership, stating that the collaboration with KoinX reinforces CoinDCX's commitment to offering customer-centric solutions. He highlighted that the initiative is designed to simplify tax compliance procedures for their users, thereby elevating their overall experience on the platform.
Punit Agarwal, CEO of KoinX, shared similar sentiments. He emphasized that the primary objective of the partnership is to provide CoinDCX's user base with a simple, one-click cryptocurrency tax reporting solution, fully compliant with Indian tax laws. Agarwal believes this partnership will enable them to serve millions of users, offering the necessary resources and information for crypto investors to manage their portfolios and accurately file their taxes.
This announcement comes on the heels of the 2022 Centre's decision to impose a tax on investments in virtual digital assets or cryptocurrencies. The new policy requires a one percent tax deducted at source (TDS) and a 30 percent tax on any income generated from such assets.