The aim of this collaboration is to help users save their time by not having to navigate the complexities of the crypto tax filing process.
India levies a 30 percent tax on all profits generated by crypto activities
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Mudrex, a crypto investment platform founded by Indian entrepreneurs, has struck a partnership with tax computing platform ClearTax. The crypto exchanges operating in India now have a set of rules they need to adhere to, in order to stay compliant in conducting their operations here. One important critera that Indian crypto players are prioritising to ensure is that their users pay the taxes they owe on their crypto profits. Computing these taxes has been confusing and tricky for many, leading to several evading these crypto taxes in the last two years since these charges were levied.
Mudrex aims to alleviate the complexities associated with tax reporting with this new partnership. The aim is to help users save their time by not having to navigate the complexities of the crypto tax filing process. As part of this partnership, the trader and investor communities using Mudrex will get an access to the tax computing solutions offered by ClearTax. This access will simplify the process of generating detailed tax reports, leveraging automated tax calculation services, and gaining valuable portfolio insights. Mudrex users will also be able to download VDA-compliant tax reports essential for filing their Income Tax Returns (ITR).
It is, however, noteworthy, that Mudrex users will have to pay a ‘nominal fee' to use ClearTax's suit despite this partnership. Speaking to Gadgets360, the company said that ClearTax's services plan that starts at Rs. 299, will cost lesser for Mudrex users. The exact price was not disclosed.
“Mudrex's users are well-positioned to leverage this opportunity as a pivotal moment in their financial journey and further equip themselves with the tools and resources they need to achieve their financial and compliance goals efficiently,” said Avinash Polepally, Senior Director (Consumer Business Head) at ClearTax as commenting on the matter.
The crypto community in India has time and again urged members of their circle to be compliant in paying their crypto taxes – to demonstrate to the government that the crypto sector can follow legal discipline. This way, they believe, the government could get more confident in supporting the growth of this sector.
As per the Indian law levied in 2022, profits generated by crypto activities are taxed by 30 percent. Also, one percent tax is deducted at source on each crypto transaction.
In a recent conversation with Gadgets360, another crypto tax computing platform Taxnodes had said that tax compliance amongst the Indian crypto community is very low. Between 2022 and 2023, merely 0.07 percent crypto holders in India paid their crypto taxes, a report by Sweden-based tech research firm Divly had claimed last year.
As per Taxnodes, the primary reason for low tax compliance in India is from a lack of awareness among taxpayers.
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