In order to solve confusion surrounding crypto tax among Indian users, KoinX will soon launch its platform that answers all the questions related to the tax the users will have to pay for trading in crypto.
This new platform will help crypto investors to understand India’s new crypto tax framework that was announced in the 2022 Financial Budget and became effective on 1 July 2022.
The yet-to-be-launched subscription-based service is seeking users’ registration and requires it on the KoinX website.
The company has set an annual fee of INR 749 ($10) per user for which it will provide tax reports that can be used for filing income tax returns.
Users can also use the platform to see their realized and unrealized capital gains across all crypto exchanges, as the company has tied up with the top 6 biggest Indian crypto exchanges, namely Bitbns, WazixX, CoinDCX, CoinSwitch Kuber, Binance, and others.
The company launched its website on 5 April 2022 and over 20,409 users have also shown interest in its service.
The company claims that it is the all-in-one resource for computing taxes imposed on digital assets like cryptocurrencies and NFTs.
“Crypto transactions are very complicated, other than INR pairs, there is crypto-to-crypto trading that is also part of the ecosystem. As the sector is very dynamic, it is difficult for a commoner to keep track of real-time price changes”, KoinX founder Punil Agarwal said.
“Apart from this, keeping themselves informed with the new crypto tax laws in countries like India is also a challenge and our product might also solve these problems”, Agarwal adds.
In February 2022, the Indian government announced that starting on April 1, a 30% crypto tax on the profit of any virtual digital asset (VDA), that includes cryptocurrencies and non-fungible tokens (NFTs), and starting on July 1, all cryptocurrency transactions will be subject to a 1% tax deducted at source (TDS).
The increased tariffs have had a significant negative impact on trading volumes, with Indian crypto exchanges reporting a decline of over 90% in trade volume.
KoinX Raises $1.5 million
However, this did not stop KoinX from raising funds from investors, which bagged $1.5 million from angel investors.
The company on 5 July 2022 said that they have raised the seed funding from Sandeep Nailwal, the founder of Polygon, iSeed Fund, Kube VC, and over 40 additional angel investors.
One of the KoinX angel investors said, during bear markets, that it is challenging for any angel investor to invest in crypto startup firms, and the company that survives the current bear market is worth investing in and KoinX is one such company.
The company intends to start with taxes but may later add additional supplementary services.
According to Agarwal, customers who are waitlisted would have early access to the application and extra benefits.
He also added that those who signed up for the waitlist between 8 PM IST and 11:59 PM IST on July 5 will be able to use the platform for free for two tax seasons.
The platform’s app version is anticipated to launch soon.