Why Your AIS Sale Value Is Lower Than Your Actual Crypto Turnover on Mudrex

If you're a crypto investor using Mudrex and recently checked your AIS (Annual Information Statement), you may have noticed something odd — the sale value listed in your AIS is significantly lower than what you actually traded over the year.

This often causes confusion, especially during ITR filing.

In this blog, we’ll break down why this discrepancy occurs, how crypto taxation works under Indian law, and how to ensure you’re still filing your taxes correctly.

What Does the AIS Report?

The Annual Information Statement (AIS) is a summary prepared by the Income Tax Department that reflects key financial data reported by third parties — like banks, mutual funds, and in this case, crypto exchanges.

For crypto users, AIS usually shows:

• Sale value of crypto reported by exchanges
• TDS deducted (if any)

But what if it doesn’t reflect all your transactions?

What Mudrex Reports (And What It Doesn’t)

As of now, Mudrex deducts TDS only on crypto-to-INR sale transactions — not on crypto-to-crypto swaps.

Here’s what this means:

• When you sell Bitcoin for INR on Mudrex: TDS is deducted and reported
• When you swap Bitcoin for Ethereum: No TDS is deducted, and it’s not reported to the IT department

So, your AIS only includes the INR sale, even though you may have done several swaps.

What Does the Law Actually Say?

Under the Income Tax Act, Section 115BBH, every transfer of a Virtual Digital Asset (VDA) is taxable.

This includes:

• Crypto to crypto swaps
• Crypto to INR sales
• Even transfers between wallets, in some cases

And under Section 194S, TDS is to be deducted on such transfers.

Even though some platforms don’t yet deduct TDS on swaps, that doesn’t exempt you from reporting those transfers.

Why Is the Sale Value Different?

Let’s understand this with a basic example:

Your Mudrex trades:

• Buy 1 ETH for ₹1,00,000
• Swap 1 ETH for 1000 USDT (worth ₹90,000)
• Sell 1000 USDT for ₹92,000

Here’s what happens:

• Mudrex deducts TDS on the ₹92,000 sale to INR
• AIS shows ₹92,000 as your crypto sale value
• But in reality, you’ve transferred crypto worth ₹90,000 + ₹92,000 = ₹1,82,000

So your actual sale turnover is ₹1.82 lakh, but AIS shows only ₹92,000.

Is This a Problem?

No — this is expected behavior based on how exchanges report data vs. what you are legally required to report.

Your AIS is only a partial reflection of your crypto activity.

As a taxpayer, you’re expected to disclose all crypto transfers, including swaps, even if they’re not in AIS and no TDS was deducted.

This is the core of crypto tax compliance under Indian law.

Does Higher Sale Value Mean More Tax?

Not necessarily. Sale value is just your turnover. You're taxed on profits, not on gross sales.

The formula for tax on crypto is: (Sale Price – Cost Price) = Capital Gain

Then, you pay 30% tax on the gain (plus surcharge and cess).

So even if your total turnover is ₹10 lakh, if you made no profit, your tax would be ₹0 (though TDS may still be deducted).

How Can You File Accurately?

If you’re using Mudrex or any other exchange that doesn’t show the complete sale value:

• Don’t rely solely on the AIS
• Prepare a detailed ledger of all crypto transfers
• Include swaps, P2P trades, and wallet movements
• Calculate capital gains or losses on each transaction

If this sounds complicated, KoinX can automate this process. To make things convenient for our users, we have partnered with Mudrex to allow you to directly connect your Mudrex account with KoinX. Once connected, KoinX will automatically fetch the required data for your tax reports.

Here’s how to use the Direct Connect option:

1. Log in to your KoinX account and go to Integrations.
2. Search for Mudrex and select Direct Connect (opens in a new tab).
3. Log in to your Mudrex account when prompted and authorize access.
4. Your Mudrex data will be synced automatically into KoinX.

For the full step-by-step guide, please check: How to File Your Mudrex Taxes with KoinX? (opens in a new tab)

What KoinX Does Differently

KoinX connects to your Mudrex account and other wallets/exchanges to:

• Aggregate all your crypto transactions
• Identify taxable transfers (including swaps)
• Calculate total sale value and cost basis
• Account for TDS already deducted
• Generate tax reports compliant with Sections 115BBH and 194S

This ensures you're fully compliant, even if your AIS or platform doesn’t show the full picture.

Conclusion

To summarize:

• Mudrex deducts TDS only on crypto-to-INR sales, not on swaps
• AIS reflects only those INR sale values
• Indian tax law requires reporting all crypto transfers, not just the ones with TDS
• A mismatch between AIS and your actual turnover is normal and not a cause for concern — as long as your ITR reflects the correct total
• KoinX can help ensure accurate, audit-ready reporting

If you're filing your ITR soon, double-check that all your swaps and transfers are included — even if TDS wasn't.