How do to your Bitbns taxes
Bitbns is the largest crypto exchange in India by market share, with a trading volume of more than $6 billion annually. Founded in 2017, Indian investors can use Bitbns to buy, sell and trade more than 400 cryptocurrencies - including margin and derivatives trading.
Does Bitbns report to the Income Tax Department in India?
It’s likely the ITD knows about your Bitbns transactions. The ITD introduced the 1% TDS to keep track of crypto investments for Indian taxpayers. The ITD may also be able to request customer data - like KYC data - from Indian 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 Bitbns transactions taxed?
The ITD has released guidance on crypto taxes over the past few years, meaning your Bitbns transactions may be subject to 3 tax rates depending on the transaction:
1% TDS: Purchasing crypto with INR or trading one crypto for another is subject to 1% TDS. Bitbns will deduct this on your behalf.
30% tax: Any gain from trading, selling, or spending crypto on Bitbns is subject to a 30% flat tax. Losses from trading, selling, or spending crypto cannot be offset against gains.
Income Tax at your individual slab rate: Earning crypto - for example, staking rewards - may be subject to Income Tax at your individual slab rate.
Learn more about how crypto is taxed in India.
How to get a Bitbns tax statement
The ITD requires crypto investors in India to report crypto in their Income Tax Return. Any gains from crypto should be reported in the Schedule VDA, while any income from crypto should be reported in Schedule Income From Other Sources. You can do all of this online using the Income Tax Portal, but first, you'll need to calculate your Bitbns gains and income.
You can do this yourself, but it's time-consuming - you'll need to have details about each disposal of crypto (so anytime you swapped, sold, or spent crypto) including your cost base, transaction dates, the transaction proceeds, and more. 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 Bitbns 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
Does Bitbns deduct TDS?
Yes. Bitbns deducts TDS on behalf of users when they buy crypto with INR or trade crypto for crypto using the platform. For systematic investment plans (SIPs), Bitbns has announced the platform will charge users 0% TDS, and bear the tax burden for its users instead.
Does Bitbns have tax documents?
No. Bitbns does not issue tax documents. Instead, you'll need to either export your Bitbns transaction history and calculate your taxable gains and income yourself, or use a crypto tax calculator to do it for you.
How do I get Bitbns tax documents?
The easiest way to get Bitbns tax documents in no time at all is to use a crypto tax calculator like Koinly. Just connect to your crypto tax calculator via API and it will automatically import your Bitbns transaction history, calculate your gains, losses, and income, and generate your crypto tax report, ready to file with the ITD.
Does Bitbns provide financial or end of year statements?
No. Bitbns does not provide financial or end-of-year statements. You can, however, export your Bitbns transaction history as a CSV file for tax or accounting purposes.
