DigiFinex is a well-known exchange platform that came into existence in 2017. Users can avail of several crypto trading pairs here. This includes all the essential cryptocurrencies such as Bitcoin, Ethereum Litecoin, Bitcoin Cash, and more. It ensures not only efficiency but also the safety and security of its users. Users can also get access to value-added services here.
But per regulations, crypto trading is not easy without maintaining crypto taxes. Those who are dealing with it and are making profits from it have to file for taxes. KoinX can help one carry it out with ease. It is an automated tax calculation platform. It can tax reports for the users to sort through their transactions and file them. Over 40 million transactions have been done so far.
You can learn all about the steps of integrating DigiFinex with KoinX here, as it’s important to know all the steps before you opt for it.
A step-by-step guide on how to generate your Digifinex tax report with KoinX
Step 1: Log in to your Digifinex account.
Step 2: On the top right corner of the profile section, click on 2 Factor Authentication.
Step 3: Go to API Settings on the left side.
Step 4: Click on Create API.
Step 5: Make sure you give the following permissions while creating the API.
Step 6: Log in to KoinX.
Step 7: Click on the Integrations section in the navigation bar.
Step 8: In the search bar, search for Digifinex Exchange and select the exchange.
Step 9: Paste your API keys and hit the Import Now button.
How to easily calculate & file your Digifinex taxes with KoinX
Step 1: Add all the chains and exchanges where you have an account
You can file taxes for a variety of cryptocurrencies on KoinX. It is because it supports a large number of digital currencies. You must set up your exchange platform with KoinX to facilitate the same. For example, if you want to generate a DigiFinex tax report, you must set it up with KoinX.
Step 2: Review your transactions
Like all crypto platforms, KoinX also adheres to all the latest tax regulations. It prepares tax reports according to the laws. Based on the type of transaction, it segregates each into different categories. It will also reflect on all the profits and losses as well. Doing so makes it easy to review all the transactions done so far.
Step 3: Generate your tax reports for the selected financial year
After analysing all the data available, it will prepare the tax report. To make sure you get an accurate tax report, you have to select the year for which you need the data. Based on your trading and investment method, you can then differentiate each. For instance, you can categorise them into capital gains or business income.
Step 4: File your taxes
KoinX makes it easier for tax reports to be downloaded in any format you need. It makes it available on the platform for easy download. This way, one can avoid all obstacles in filing for taxes.
Important things to consider while generating your Digifinex tax report with KoinX
One must keep some things in mind while integrating DigiFinex with KoinX. These points are as follows:
- KoinX needs help getting all the data it needs from DigiFinex. The user’s task is to sync up all the transactions with it. But to eradicate all types of errors, it is important to stay away from gaps.
- Users must check whether all the data has been transferred from DigiFinex to KoinX. It is only possible if all the data, starting from the date you set up your account, is transferred to the exchange platform. It will keep the reports free of mistakes.
- Before the crypto platform starts computing all the data for profits and losses, users must analyse the data available. It will eventually aid an accurate analysis and perfect tax reports.
Filing taxes and generating DigiFinex reports can be much easier if you remember all the above steps. It will also help you stay compliant with all the rules and regulations.
Frequently Asked Questions
Do I need to report my Digifinex transactions for tax purposes?
Yes, you need to report your DigiFinex transactions for tax purposes. People yielding profits from transactions and trading in digital assets have to file for taxes. But to do so, it is important to follow the rules of one’s specific region.
Does Digifinex report to the Income Tax Department?
No, DigiFinex does not report to the Income Tax Department. It is only a source for selling and buying cryptocurrency as it is an exchange platform. Because it is a legal and financial entity, it has to strictly follow all tax rules and regulations.
Does Digifinex provide tax reports?
No, DigiFinex does not provide tax reports. You can either trade, sell or buy crypto on the source. To facilitate tax reports, all you have to do is set up your account with KoinX. It is because it is one of the few platforms to help you access accurate tax reports. It maintains all the rules while preparing these reports
How are Digifinex transactions taxed?
DigiFinex transactions are taxes per the latest laws laid down by authorities. It is now compulsory for all crypto assets to bear a 30% tax, with 1% TDS. This rule has been made by the Indian Budget 2020. Authentic platforms have to adhere to all such rules and regulations strictly.
How does Digifinex tax reporting with KoinX work?
As you set up your DigiFinex account with KoinX, you give it access to all the transactions. It then becomes easy to get a preview of all the data available. You can also check for improvements in the data if the need arises. After you do so, KoinX will start the computation of all available data. The tax reports will then be available for easy download on the platform.
What are the most common issues with importing transactions from Digifinex to KoinX?
Specific issues can occur while importing transactions from DigiFinex to KoinX. First, users have to select the correct file. They must also check whether the year they chose is the right one. It would also help if they cross-check whether they have set the ‘read info’ option while generating the API key. It will restrict any changes from occurring to the data.
How do I troubleshoot my Digifinex integration with KoinX?
If you need help gaining knowledge about the integration of DigiFinex with KoinX, then you can refer to the guide available here. You can even contact customer support at KoinX. You can chat or contact us on Twitter or email us at support@koinx.com.
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