Mudrex, a crypto investment platform founded by Indian entrepreneurs, has recently partnered with tax computing platform ClearTax. This collaboration comes as a response to the set of rules that crypto exchanges in India must adhere to in order to stay compliant with regulations. One of the key priorities for Indian crypto players is to ensure that their users pay the taxes they owe on their crypto profits. However, computing these taxes has proven to be confusing and tricky for many individuals, resulting in widespread tax evasion within the crypto community in the country.
The partnership between Mudrex and ClearTax aims to simplify the tax reporting process for users, thereby saving them time and effort in navigating the complexities of crypto tax filing. Users will gain access to ClearTax’s tax computing solutions, which include automated tax calculation services, detailed tax reports, and valuable portfolio insights. This will enable Mudrex users to obtain VDA-compliant tax reports essential for filing their Income Tax Returns (ITR) seamlessly.
While Mudrex users will have access to ClearTax’s tax computing solutions through this partnership, they will be required to pay a “nominal fee” for using the services. ClearTax’s services plan, starting at Rs. 299, will cost less for Mudrex users, although the exact price has not been disclosed. Despite the additional cost, Mudrex believes that this partnership will equip its users with the necessary tools and resources to achieve their financial and compliance goals efficiently.
The crypto community in India has been vocal about the importance of complying with crypto tax regulations to demonstrate legal discipline to the government. By encouraging members to pay their crypto taxes, the community hopes to gain the government’s confidence in supporting the growth of the crypto sector in the country. As per Indian tax laws implemented in 2022, profits from crypto activities are subject to a 30 percent tax, with an additional one percent tax deducted at source on each crypto transaction. Despite these regulations, tax compliance among Indian crypto users remains low, primarily due to a lack of awareness among taxpayers.
Mudrex’s partnership with ClearTax marks a significant step towards simplifying and streamlining the process of crypto tax reporting in India. By providing users with access to ClearTax’s tax computing solutions, Mudrex aims to enhance tax compliance within the crypto community and support the growth of the sector in the country. While there may be a nominal fee associated with using ClearTax’s services, the benefits and insights gained from this partnership are invaluable for Mudrex users in managing their crypto investments and tax obligations effectively.
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