KoinX launches crypto tax tool for Indian CAs and aims to increase user base by 400 percent

KoinX, the Indian-born crypto control platform, aims to grow its user base by 400 percent by 2023. To get closer to this goal, KoinX launched “Tax Professionals” on Monday, January 9th. This new tool that will reduce by 99 percent the processing time (TAT) for Chartered Accountants (CAs) to prepare and file taxes on crypto gains levied by the Government of India for domestic investors in the digital assets. The launch of this tool by KoinX comes just before India receives its refreshed union budget in February, which could see the crypto sector as a major talking point.

the crypto tax Tool has been described as B2B2C – which expands to “business-to-business-to-consumer”. B2B2C is an e-commerce platform that allows businesses to help customers through third parties instead of connecting with them themselves.

The “Tax Experts” function makes this possible CAs gather all their clients on a single dashboard and manage their crypto taxes. Details of customers’ portfolios are managed for the CAs via this tool.

“Despite the government’s anti-crypto stance, authorities like the Central Board of Direct Taxes (CBDT) are moving quickly toward tax collection as the Union budget approaches. The introduction of Tax Professionals will potentially plug crypto tax leaks in India,” said Punit Agarwal, the CEO and founder of KoinX, in a expression.

In Indiaall profits from crypto transactions have been taxed at 30 percent since April 2022, and a 1 percent withholding tax (TDS) on crypto transactions has also been in effect in the nation since July.

While these are crypto taxes to have known Contributed Rs. 60.46 crore to India’s economy between July and December, they appear to have pushed Indian investors toward foreign exchange.

According to a study by the Delhi-based think tank Esya centerIndian investors moved $3.8 billion (about Rs. 31,300) to international exchanges between February and October last year.

Pro-crypto organizations in India like Bharat Web3 have urged the government to reconsider these taxes and introduce possible reductions.

Launched in 2022, KoinX claims to help crypto firms like CoinDCX, BitBNS, CoinSwitch, WazirX, Binance, and KuCoin manage their taxes in India, among others.