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.
Whatever your investments, Koinly can help you calculate your WazirX taxes. Here's how it works:
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.
There are three potential tax rates that may apply may apply to your WazirX transactions:
Want to learn more about how crypto is taxed? Read our India Crypto Tax Guide.
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.
The WazirX API has data limitations in place. Your deposits and withdrawals will not be imported via API and open orders may be imported incorrectly. Please use CSV files to import these transactions or add them manually.
The maximum time period for CSV file data from WazirX is 12 months. But Koinly needs your complete transaction history from WazirX in order to calculate your transaction history correctly, for however long you've had the account, so you may need to download multiple CSV files.
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No, WazirX does not provide tax documents. You can however find details of any TDS paid on the order details page, or in your Trading Report. As for the rest of your crypto taxes, you'll need to get your WazirX transaction history and either calculate your profits yourself, or use a crypto tax calculator to do it for you.
No. WazirX does not issue financial or end of year statements to users, but you can export your transaction history as a CSV file for tax or accounting purposes.
The easiest way to get your WazirX tax documents is to use an Indian crypto tax calculator like Koinly. Koinly connects automatically with WazirX via API or you can upload a CSV file of your transaction history. Once you've connected, Koinly calculates your gains, losses, and income, before generating your crypto tax report ready to file online or hand over to your accountant.
Yes. WazirX is a compliant crypto exchange and deducts TDS on behalf of users and deposits it with the ITD.