Starting August 16, 2023, tax reports generated by CoinTracker for users in India will no longer be tax compliant.
CoinTracker's capital gain calculations will include fees paid on exchanges and blockchains, and the Income Tax Department (ITD) does not allow a deduction for fees.
What do you need to do?
If you used CoinTracker in past years for crypto tax reporting:
We recommend that you download previous years’ tax reports before Aug 16 2023, so that you have a record of these. You can generate tax reports from the tax center for the specific tax year.
If you plan to use CoinTracker next year for crypto tax reporting:
For next tax season (April 2023 - March 2024), the tax reports generated by CoinTracker will not comply with India tax regulations by default. Instead, you will need to edit transactions manually so that the fee is not included in the cost basis.
We understand this is not an ideal solution and that CoinTracker might not be the best fit for your crypto tax needs.
I don’t use/didn’t use CoinTracker for taxes, do I need to do anything?
If you use CoinTracker for tracking your portfolio only, no action is needed.
CoinTracker will continue to track your crypto portfolio as before. This change only affects tax reports/tax calculations.
How can I receive my tax reports?
You can generate tax reports from the tax center for the specific tax year. CoinTracker recommends doing this for all tax years that you previously filed with CoinTracker.
After Aug 16, 2023, these reports will not be tax compliant (because they are calculated using an upgraded accouting engine which includes fees in cost basis calculations.)
Do I need to refile or amend previous taxes?
Tax reports generated before Aug 16, 2023 are compliant with current Indian tax regulations. If you previously filed taxes in India using CoinTracker, this change does not affect those tax reports.
However, if you generate the tax reports after Aug 16 2023 (even for a previous tax year), the reports will not be tax compliant.
Why is this change happening?
In India, trading fees are not tax deductible. Our current accounting engine cannot exclude fees from India tax calculations at this time.
If you have any other questions, please reach out to our support team via our chatbot, Chatoshi at this link.
Disclaimer: CoinTracker is provided for informational purposes only. This service is not intended to substitute for tax, audit, accounting, investment, financial, nor legal advice. For financial, tax, or legal advice please consult your own professional. The information on CoinTracker is subject to change without notice. All information is provided "as is." CoinTracker disclaims any responsibility for the accuracy or adequacy of any positions taken by you in your tax returns. Please see our full disclaimer.