KoinX, India-born crypto taxation platform, is aiming at increasing its userbase by 400% in 2023. Moving towards its aim, KoinX on 9th January 2023, launch ‘Tax Professionals‘. This new tool that will reduce the turnaround time (TAT) by 99% 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 refresh Union Budget in February that could see the crypto sector as an important point of discussion.
The crypto tax tool has describe 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 manage for the CAs via this tool.
Punit Agarwal, the CEO and founder of KoinX, said in a statement :
“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,”.
In India, all profits churn from crypto transactions are being tax at 30% since April 2022 and a 1% tax deduct at source (TDS) for crypto transactions has also live in the nation since July.
While these crypto taxes are known to have contribute 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-base think tank Esya Centre, Indian investors shifted $3.8 billion (approx. Rs. 31,300 crore) between February and October 2022, to international exchanges.
Pro-crypto organisations in India like Bharat Web3 have request the government to reconsider these taxes and introduce any possible reductions.
KoinX claims to be helping crypto firms like CoinDCX, BitBNS, CoinSwitch, WazirX, Binance, and KuCoin among many others, to manage their taxes in India.
