KoinX, India-born crypto taxation platform, is aiming at increasing its userbase by 400 percent in 2023. Moving towards its aim, KoinX on Monday, January 9, launched ‘Tax Professionals'. This new tool that will reduce the turnaround time (TAT) by 99 percent for chartered accountants (CAs) to compile and file taxes on crypto profits as levied by the Indian government for native investors of the digital assets. The launch of this tool from KoinX comes right before India gets its refreshed Union Budget in February that could see the crypto sector as an important point of discussion.
The crypto tax tool has been described as a B2B2C — which expands to ‘business-to-business-to-consumer'. B2B2C is an e-commerce platform that allows businesses to help customers via a third party, rather than connecting with them themselves.
The ‘Tax Professionals' feature will allow CAs to gather all their clients on a single dashboard and manage their crypto taxes. Details on the clients' portfolios will be managed for the CAs via this tool.
“Despite the government's crypto-antagonistic attitude, authorities like the Central Board of Direct Taxes (CBDT) are moving swiftly towards recovering taxes as the Union Budget approaches. The introduction of Tax Professionals will potentially plug crypto tax leakages in India,” Punit Agarwal, the CEO and founder of KoinX, said in a statement.
In India, all profits churned from crypto transactions are being taxed at 30 percent since April 2022 and a 1 percent tax deducted at source (TDS) for crypto transactions has also been live in the nation since July.
While these crypto taxes are known to have contributed Rs. 60.46 crore to India's economy between July and December, they did seemingly push Indian investors towards foreign exchanges.
As per a study by Delhi-based think tank Esya Centre, Indian investors shifted $3.8 billion (roughly Rs. 31,300 crore) between February and October last year, to international exchanges.
Pro-crypto organisations in India like Bharat Web3 have requested the government to reconsider these taxes and introduce any possible reductions.
Launched in 2022, KoinX claims to be helping crypto firms like CoinDCX, BitBNS, CoinSwitch, WazirX, Binance, and KuCoin among others, to manage their taxes in India.
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