In this guide, we will explain the taxation of Coindcx transactions and provide you with a straightforward process to quickly report your Coindcx taxes.

How do you simplify CoinDCX tax Reporting and How Catax help in this?

To simplify coindcx tax reporting, you can use Catax, a powerful crypto tax calculator. Here’s a step-by-step guide:

a. Sign up on Catax and set your country to India with currency in INR.

b. Connect CoinDCX to Catax securely to import your trading data.

c. Catax categorizes your CoinDCX transactions into gains, losses, and income.

d. You can then download your crypto tax report from Catax, your trusted crypto tax calculator.

e. File your crypto taxes online or hand over the report to your accountant.

what is Coindcx?

CoinDCX is a prominent cryptocurrency exchange catering to Indian investors. It offers a wide variety of popular altcoins as well as features such as margin trading, futures and passive income through its “Earn” feature.

What are the CoinDCX Transactions taxes and how do they affect users?

CoinDCX transactions in India are subject to three taxes rates :

a. 1% TDS: Applied when purchasing crypto with INR or trading one crypto for another on CoinDCX, with CoinDCX handling the deduction.

b. 30% Flat Tax: Any gains from trading, selling, or spending crypto on CoinDCX are subject to a flat tax rate of 30%, and losses cannot be offset against gains.

c. Income Tax at Slab Rate: Earnings from crypto, including CoinDCX Earn products, may be subject to Income Tax at an individual’s applicable slab rate.

Simplifying Tax Reporting with Catax

Why do we need to keep careful records for CoinDCX taxes?

Accurate reporting necessitates maintaining details such as cost base, transaction dates, and proceeds for each crypto transaction, in addition to calculating the fair market value of income in INR.

How does Catax help with CoinDCX taxes and why use a crypto tax calculator?

Catax automates the complex calculations required for tax reporting. By connecting CoinDCX to Catax, users can generate comprehensive coindcx tax reports effortlessly. The key advantage of using a crypto tax calculator like Catax is the ability to streamline the tax reporting process and ensure accuracy.

Connecting CoinDCX to Catax via API

a. On CoinDCX:

What are the steps to connect CoinDCX to Catax automatically through API integration, and why is it necessary to have a read-only API key?

i. Log in and access the API dashboard.

ii. Create a new API key with a name (e.g., “Catax”)

iii. Complete two-factor verification.

iv. Copy the API key and API secret.

b. On Catax:

i. Sign in and navigate to wallets.

ii. Add a new wallet named “CoinDCX” and select ‘set up auto-sync’.

iii. Paste the API key and API secret while ensuring it’s read-only for security.

What should CoinDCX users do if they have transactions not supported by the CoinDCX API, and what is the alternative method for uploading data?

Users with transactions beyond the scope of CoinDCX’s API should resort to the CSV file method for data upload.

Connecting CoinDCX to Catax via CSV File

a. On CoinDCX:

i. Log in and go to orders.

ii. Click on TDS Summary

iii. Click on Download CSV.

iv. Fill the date and Download CSV file.

To export their CoinDCX CSV file to Catax, follow these steps:

a. Sign in to Catax and go to the wallets section.

b. Add a new wallet named “CoinDCX” and choose ‘import from file’.

c. Upload your CSV file(s) for tax reporting.

By addressing these questions, users can gain a comprehensive understanding of CoinDCX, coindcx tax implications, and the tools available to simplify coindcx tax reporting, ultimately ensuring compliance and accuracy when filing crypto taxes.