April 2023: WazirX, India’s leading crypto exchange, and TaxNodes, an expert-assisted ITR filing platform, have tied up to simplify crypto taxation process for investors. With this partnership, TaxNodes will help the vast user base of WazirX to calculate and file taxes on their investments accurately and make them aware of tax developments in the virtual digital asset industry. There have been many misconceptions as well as an overall lack of understanding on the part of investors with respect to tax calculations. With the growing popularity of crypto in India, it is essential to set up the right infrastructure for compliance and knowledge for engagement with virtual digital assets, hence this arrangement.
The Indian government introduced a tax on virtual digital assets in 2022. According to the newly added section 115BBH, any income derived from the transfer of any virtual digital asset is subject to a 30% tax. This is effective for the financial year 2022-23. Furthermore, from 1 July 2022, any consideration paid for the transfer of a virtual digital asset is subject to 1% tax as Tax Deducted at Source (TDS).
Speaking of the partnership, WazirX Vice President Rajagopal Menon said, “WazirX has always prioritized compliance with regulations in the country to set an example of fair practice in the virtual digital asset industry. The partnership between WazirX and TaxNodes will be beneficial in enabling an ecosystem of regulatory abidance and mainstream adoption of crypto without the challenges of tax miscalculation or default.”
Avinash Shekhar, Founder & CEO, TaxNodes, said, “We are thrilled to embark on a new journey with WazirX. We are sure that our end-to-end solutions will help WazirX’s huge customer base get the much-needed clarity on the taxes levied on their investment. We are confident that our users will be able to leverage our expert-assisted plans to not only compute but also file their taxes, thereby enabling us to simplify the taxation journey of every crypto investor in the country.”
A collaboration between the two prominent stakeholders of the Indian crypto ecosystem will encourage more users to seek information about the existing and developing laws for virtual digital assets while having access to a wide range of digital tokens. This will also be pivotal in helping users trade crypto freely without having to worry about the intricacies of tax filing.
According to a latest report, India is one of the top ten countries in terms of crypto adoption readiness. With emerging regulations and an optimistic attitude by the Indian Finance Minister towards virtual digital assets, these insights are set to become a reality.
About WazirX:
WazirX is an India-based crypto exchange that allows users to buy, sell, and trade various crypto assets like Bitcoin, Ether, Litecoin, and more. Today, it is India’s largest crypto exchange by volume and has over 15 million users. Founded by Nischal Shetty, Siddharth Menon, and Sameer Mhatre, WazirX aims to make crypto accessible to every Indian.
About TaxNodes:
TaxNodes is a crypto tax platform that aims to simplify the tax computing process in India. The platform was founded in December 2022 and headquartered in Singapore by seasoned finance executive Avinash Shekhar. TaxNodes was launched with the mission to transform the way crypto profitability, taxation, and reporting are handled for retail investors as well as exchanges.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
