How to do your WazirX taxes in 2024
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.
Follow these steps to sync your WazirX data automatically to Koinly:
- Log in to your WazirX account.
- In the top right corner, click the Profile icon.
- From the drop-down menu, click Account Settings.
- Select API Key Manager.
- Select Create New API Key.
- Give your API Key a name, for example, “Koinly”.
- Complete Two Factor Authentication.
- Check the email address you use for your WazirX account, and complete authentication.
- Copy your API Key and API Secret, and paste into the fields in Koinly.
On Koinly:
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find WazirX in the list
- Select API > Paste the API keys you copied above in the appropriate box
- Hit Import and wait for Koinly to sync your data. This can take a few minutes
- Review your transactions on the Transactions page to ensure everything is tagged correctly and no missing data
- Go to the Tax Reports page to view your tax liability!
- 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
- Head over to our help center
- Hit up our discussion boards - we might have already answered your question
- Ask us on social media - we're on Twitter and Reddit
- Contact us on email or live chat
- Got a feature request? Give us feedback on Canny
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:
Sign up to Koinly and choose your country (India) and currency (INR)
Connect WazirX with Koinly to import all your WazirX trades safely and securely
Koinly categorizes WazirX transactions into gains, losses, and income
Download your crypto tax report from Koinly
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.
Read next: How to Report & Pay Crypto Tax in India
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:Â 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
Does WazirX provide tax documents?
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.
Does WazirX provide financial or end of year statements?
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.
How do I get WazirX tax documents?
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.
Does WazirX deduct TDS?
Yes. WazirX is a compliant crypto exchange and deducts TDS on behalf of users and deposits it with the ITD.
