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Binance launches Tax Reporting Tool. How will it help Indian crypto investors in income tax return filing?

Cryptocurrency trading platform Binance has announced to launch Tax Reporting Tool, a new API that will enable Binance users to easily keep track of their crypto activities and streamline reporting requirements.

Binance launches Tax Reporting Tool. How will it help Indian crypto investors in income tax return filing?
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Cryptocurrency trading platform Binance has announced to launch Tax Reporting Tool, a new API that will enable Binance users to easily keep track of their crypto activities and streamline reporting requirements. Binance’s Tax Reporting Tool will be available from 28th July, 4:00 AM UTC. Binance users will be able to access the Tax Reporting Tool via “Account” and “API Management” on both the Binance Website and Binance App.

Binance is one of the world’s leading blockchain ecosystem and cryptocurrency infrastructure providers.

How will the tax tool help Indians in tax filing?

A Binance spokesperson told FE Online, ‘’With the introduction of our Tax Reporting Tool, users can now have all their Binance transactions automatically tracked and recorded for tax reporting, via local tax platforms available in India.”

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He further said that the tax reporting tool is able to generate statements and transaction records of more than one financial year via API integration with third-party tax vendors.

“We encourage and welcome Indian tax reporting platforms to integrate our API and help provide their users more functionality to file taxes given their expertise on local laws and taxation,” the Binance spokesperson said.

“It’s also important to note that Binance does not provide tax or financial advice and we would recommend users to consult with their designated tax advisors,” he added.

In a media release, Binance said that with the Tax Reporting Tool, users can transfer their Binance transaction history to third party tax vendors, as well as obtain real-time overviews of their local tax liabilities.

The crypto company also said that the new Tax Reporting Tool will be part of Binance’s “broader strategy to expand user protection and risk management protocols.” Recent updates under this initiative include revisions to daily withdrawal limits and updated leverage limits for Futures accounts.

Commenting on the new tool, Changpeng Zhao (CZ) Co-founder and CEO, Binance, said in the release, “The fact is that in many countries around the world, crypto regulations are still evolving and we are all discovering the right path for this promising, young and exciting industry. We are working hard to not only align with evolving regulatory standards but to also provide a better experience for our users, from updating safeguards to introducing new products like our Tax Reporting Tool.”

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First published on: 29-07-2021 at 01:49:24 pm