CoinDCX is a popular crypto exchange for Indian investors, offering a wide selection of popular altcoins, as well as product offerings for more experienced investors like margin trading and futures, as well as an earn product for passive income from crypto investments.
Whatever your CoinDCX investments - when it comes to tax time, Koinly can help. Here's how it works:
In a manner of speaking, yes. The government introduced a 1% TDS on all purchases and crypto trades for Indian exchanges last year. This means compliant Indian crypto exchanges like CoinDCX must deduct TDS on behalf of users. The main reason TDS was introduced was to help the ITD keep track of crypto investments for Indian taxpayers to ensure tax compliance. As well as this, the ITD may also be able to request additional customer data from Indian crypto exchanges. You should always report your crypto investments accurately in your Income Tax Return - failure to do so comes with severe penalties.
The ITD has released guidance on crypto taxes over the past few years, meaning your CoinDCX transactions may be subject to 3 tax rates:
Learn more about how crypto is taxed in India.
The ITD is clear that you need to report your CoinDCX (and any other crypto) gains and income in your Income Tax Return. You should report gains from selling, swapping, or spending crypto in the Schedule VDA, while any income from crypto should be reported in Schedule Income From Other Sources. You can do all of this using the Income Tax Portal, but you'll need to calculate the figures you need to report first.
This means you need to figure out your gains, losses, and income from CoinDCX. You'll need details including your cost base, transaction dates, and proceeds for each time you sold, swapped, or spent crypto. As well as this, you'll need to calculate the fair market value of that income in INR on the day you received it for any crypto income.
This is why most investors opt to use a crypto tax calculator like Koinly. Koinly calculates all this for you and generates crypto tax reports that include all the information you need to easily file with the ITD. All you need to do is connect CoinDCX to Koinly using API or by uploading a CSV file of your transaction history.
Koinly only needs a read-only API key from CoinDCX, so you may want to amend your API access settings to read-only. Please note the CoinDCX API only supports spot trade and loan interest transaction data, so if you have transactions other than this, use the CSV file method instead.
Remember, Koinly will need your complete transaction history from CoinDCX - for however long you've used the exchange - in order to calculate your cost basis, income, gains, and losses accurately. This may mean you need to export multiple CSV files from CoinDCX.
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The only tax documents CoinDCX provide is the TDS certificate. If you're looking for a file including all your transaction history to calculate your taxable gains and income you should use the trade history report.
The easiest way to get all information you need to report your CoinDCX transactions to the ITD is to use an Indian crypto tax calculator like Koinly. All you need to do is connect automatically using API or upload a CSV file of your CoinDCX transaction history and Koinly will calculate your gains, losses, and income for you, before generating your crypto tax report. You can then use this report to file your ITR online or hand your report over to your accountant.
No. CoinDCX does not provide financial or end of year statements, but you can export your transaction history on CoinDCX as a CSV file.
Yes. CoinDCX deducts TDS on behalf of users. You can download a TDS certificate in your account.