Rajagopal Menon, vice president of WazirX, said that through a partnership with TaxNodes traders will be able to quickly get information on tax changes for the digital asset industry.
Menon explained that the decision to partner was made due to clients’ lack of understanding of reporting rules to tax authorities.
With the growing popularity of cryptocurrencies in India, the top manager argues, it is important to create the right infrastructure where regulatory requirements and tax obligations are met.
WazirX executives expect that cryptocurrency traders will want to learn more about existing and emerging laws related to virtual currencies.
India now has a one percent tax deduction for each cryptocurrency transaction withheld at source (TDS).
The Treasury Department recently reported that $19 million in taxes were collected on cryptocurrency transfers.
But many in the industry, particularly Binance CEO Changpeng Zhao, believe that India’s tougher tax regime has made it difficult to run a cryptocurrency business.