This step-by-step guide will help you manage your DigiFinex taxes easily and stay compliant. Whether you trade frequently or invest for the long term, correctly reporting your crypto transactions is essential to avoid tax issues.
Do I Need to Pay Taxes When Using DigiFinex?
Yes, in most countries, your crypto transactions on DigiFinex are taxable. You may have to pay either capital gains tax (if you make a profit by selling or trading) or income tax (if you earn crypto). Tax rules depend on your country, and some places may offer exemptions based on how long you hold your assets or how much profit you make. If you’re unsure, it’s best to check with a tax expert like Catax.
If managing taxes for your DigiFinex crypto trades seems complicated, try Catax, a simple tool that helps you calculate your cryptocurrency taxes effortlessly. Here’s how it works:
- Sign Up on Catax – Create an account, select India as your country, and choose INR as your currency.
- Connect Your DigiFinex Account – Link DigiFinex to Catax to automatically fetch your crypto transactions.
- Organize Your Transactions – Catax categorizes your trades into profits, losses, and income for clear tracking.
- Download Your Tax Report – Generate a detailed tax report summarizing your earnings and losses.
- File Your Taxes Easily – Use the report to file taxes online or share it with a tax professional.
How Are DigiFinex Transactions Taxed?
Understanding how your DigiFinex transactions are taxes is essential to stay compliant and avoid unexpected tax liabilities. Here’s a simple breakdown:
- Capital Gains Tax
- Selling or Trading Crypto – If you sell, trade, or swap crypto on DigiFinex and make a profit, you will be subject to capital gains tax.
- Tax Rates – The tax you pay depends on how long you hold the asset and the tax regulations in your country.
- Income Tax
- Earning Crypto – If you earn crypto through staking, mining, or as payment, the government considers it income and taxes it accordingly.
- Tax Rates – Tax authorities apply your regular income tax slab rate to this type of income.
Note: In India You have to pay tax under the Income Tax Act, 1961, as per Section 115BBH.
- Crypto Sales & Trades (Capital Gains Tax at 30%)
- If you sell, trade, or swap crypto on DigiFinex, you must pay 30% tax on profits (capital gains).
- No Deductions – You cannot claim any deductions, except for the cost of acquisition.
- No Loss Set-Off – Crypto losses cannot be set off against other income or carried forward to future years.
- Earning Crypto (Income Tax at Slab Rates)
- If you earn crypto through staking, mining, or as a payment, it is taxed based on your income tax slab rate.
- If you receive crypto as salary or business income, taxation follows the relevant salary or business tax rules.
- 1% TDS on Crypto Transactions
- A 1% TDS (Tax Deducted at Source) applies to crypto transactions exceeding:
- ₹50,000 per year for individuals
- ₹10,000 per year for specified users (such as businesses)
Connecting Your Digifinex Account with Catax via API
In Digifinex:
- In your Dgifinex exchange, go to the Profile Icon.
- Click on your UID from the drop-down menu.
- Click on the API Setting from the left sidebar.
- Click on the Create API button.
- Name your API key, check all the boxes in the Access segment, and enter the Email Verification Code and Google Authentication Code.
- Your API and Secret Key will be generated. Please note that you can copy them only once. Make sure to save them before clicking the red-circled button.
On Catax:
- First, log in to your Catax account.
- Go to the integration section select Digifinex and enter your API and secret key.
- Enable auto-sync to sync the full transaction history.
Connecting Your Delta-Exchange Account with Catax via Trade History
- In your Dgifinex exchange, go to the Profile Icon.
- Click on your Open Orders from the drop-down menu.
- Go to the Transaction details.
- Click on the Download transaction history button on the top right corner.
- Select your trading pair type, set your time range, and then click the Download button. Your trade history will be downloaded.
On Catax:
- First, log in to your Catax account.
- Go to the integration section and upload your trade history.
FAQs (Frequently Asked Questions)
If you transfer crypto to another wallet, it’s not taxable, but if you sell it for cash before withdrawing, you must pay tax on any profits.
Yes, rewards from staking, lending, or interest are taxed as income based on their market value when received.
You must report your crypto taxes annually, but frequent traders may need to report quarterly depending on tax authority rules.
Yes, selling NFTs for a profit incurs capital gains tax, while earnings from NFT activities like royalties or staking are taxed as income.
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