How to do your WazirX taxes

Part of the Binance group, WazirX is one of India's largest crypto exchanges, established in 2018. The platform has attracted more than 6 million users, trading billions a month with more than 200 cryptocurrencies available to buy, swap, and sell.

CSV

Follow these steps to sync your WazirX data automatically to Koinly:

  1. Log in to your WazirX account.
  2. In the top right corner, click the Profile icon.
  3. From the drop-down menu, click Account Settings.
  4. Select API Key Manager.
  5. Select Create New API Key.
  6. Give your API Key a name, for example, “Koinly”. 
  7. Complete Two Factor Authentication.
  8. Check the email address you use for your WazirX account, and complete authentication.
  9. Copy your API Key and API Secret, and paste into the fields in Koinly.

On Koinly:

  1. Create a free account on Koinly
  2. Complete onboarding until you get to the Wallets page and find WazirX in the list
  3. Select API > Paste the API keys you copied above in the appropriate box
  4. Hit Import and wait for Koinly to sync your data. This can take a few minutes
  5. Review your transactions on the Transactions page to ensure everything is tagged correctly and no missing data
  6. Go to the Tax Reports page to view your tax liability!
Notes / Limitations
  • This API does not provide deposits and withdrawals. Please use CSV files to import these transactions or add them manually
  • Open orders may be imported incorrectly due to data limitations
Having trouble connecting WazirX with Koinly?

How to get your WazirX tax report with Koinly

Whatever your investments, Koinly can help you calculate your WazirX taxes. Here's how it works:

  1. Sign up to Koinly and choose your country (India) and currency (INR)

  2. Connect WazirX with Koinly to import all your WazirX trades safely and securely

  3. Koinly categorizes WazirX transactions into gains, losses, and income

  4. Download your crypto tax report from Koinly

  5. File your crypto taxes online using the Income Tax Return Portal or hand your report over to your accountant

Does WazirX report to the Income Tax Department in India?

WazirX is a highly compliant crypto exchange based in India, which means the exchange must follow the government's guidance on collecting and depositing TDS with the ITD. The ITD largely introduced the 1% TDS to keep track of crypto investments for Indian taxpayers. So in a word, yes, it's likely the Income Tax Department knows about your WazirX transactions. As well as this, the ITD may also be able to request customer data from Indian crypto exchanges to ensure tax compliance. You should always report your crypto investments accurately in your Income Tax Return - failure to do so comes with severe penalties.

How are WazirX transactions taxed?

There are three potential tax rates that may apply may apply to your WazirX transactions:

  • 1% TDS (Tax Deducted at Source): For crypto purchases with ITD or crypto to crypto trades that exceed more than RS50,000 in a year.

  • 30% tax: Any profits from selling, swapping, or spending crypto are subject to a flat 30% tax.

  • Income Tax at your individual slab rate: Earning crypto - for example, staking rewards - may be subject to Income Tax at your individual slab rate.

Want to learn more about how crypto is taxed? Read our India Crypto Tax Guide.

How to get a WazirX tax statement

The guidance from the government is clear that Indian crypto investors must report crypto in their Income Tax Return. Gains from crypto should be reported in the Schedule VDA, while income from crypto should be reported in Schedule Income From Other Sources. You can do all of this online, but you'll first need to calculate your gains and income from crypto.

You can do this yourself - but it's a lot of work. You'll need to have details about every time you swapped, sold, or spent crypto including your cost basis, transaction dates, proceeds, and more. As well as this, if you have any income to report, you'll also need to calculate the fair market value of that income in INR on the day you received it.

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 WazirX to Koinly using API or by uploading a CSV file of your transaction history.

Learn more about how to report and pay crypto tax in India.

Your frequently asked questions

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