India's ZebPay crypto exchange aims to simplify the process of computing and filing taxes on crypto assets for its users. To do so, ZebPay has signed a deal with Singapore-based Taxnodes that will help its customers with the crypto taxes. The announcement of this deal comes as a testimony from the crypto exchange on its seriousness to ensure legal compliances from its crypto community that could help in making the sector a safe space to experiment in India.
“We are committed to creating a regulatory-compliant ecosystem that fosters the mainstream adoption of crypto in India. With 30 percent taxation and 1 percent TDS, calculation of taxation on crypto has become a complex process. Our partnership with TaxNodes will not only simplify the tax filing process for virtual digital assets but also offer personalized tax advisory services to our users at their fingertips,” Rahul Pagidipati, CEO, ZebPay, said in a prepared statement.
Founded in 2014, ZebPay is headquartered in Mumbai. Since its launch, the company claims to have onboarded over five million users and processed transactions worth $10 billion (roughly Rs. 82,020 crore) in fiat currency.
By integrating crypto tax services with its existing offerings, ZebPay will be able to nudge users to declare their crypto holdings and file taxes on time.
Time and again, industry experts have urged India's crypto community to exercise compliance with the laws in order to make the crypto sector safe. The sooner more people begin to file crypto taxes and adhere to KYC norms, industry experts predict, the sooner the Indian government would get confident in-terms of easing out the growth of the sector.
A report by Swedish research platform Divly revealed that only 0.07 percent of Indian crypto owners actually declared and paid their taxes in 2022.
Crypto taxes not only help the government keep some track of these otherwise largely anonymous transactions, but they also offer a new stream of bringing in capital to the national treasury.
In the last nine months, the TDS collected from crypto tax in India amounted to over $19 million (roughly Rs. 157 crore). The detail was disclosed to the Parliament recently by Pankaj Chaudhary, Minister of State for Finance in the country.
As India gets ready to tighten rules around crypto activities in the country, more exchanges are taking extra efforts to ensure that their users are in compliance with the laws of the country.
Earlier this month for instance, WazirX crypto exchange partnered with Taxnodes to provide crypto taxation services to its users in India.
“Our aim is to help investors calculate, evaluate, and file their crypto taxes accurately while providing them with expert advice and personalized services to trade crypto without worrying about the intricacies of tax filing,” said Taxnodes' founder and CEO Avinash Shekhar.
In the backdrop of Singapore's Taxnodes bagging back-to-back partnerships with Indian crypto exchanges, India-based crypto tax filing firm KoinX remains mum on its upcoming partnerships, if there is any in the pipeline or close to being finalised.
KoinX refused to comment on Gadgets 360's queries on the same.
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