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Quick answers to common questions about Tax Settings in KoinX. For detailed explanations, follow the linked articles at the end.

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General Settings

No. If you change your Tax Settings, previously generated reports will not update automatically. You need to regenerate reports for each financial year where you want the new settings applied. Any reports already downloaded will remain unchanged until regenerated.
No. Settings changes do not require re-syncing. Your transaction data stays the same. Only the calculations or treatment change based on the new settings. Just regenerate reports to see updated figures.
Not directly. But you can save the new settings, regenerate reports, compare with your previous reports, and change back if needed. KoinX does not charge extra for regeneration within the same financial year.

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Country and Compliance

KoinX provides tax classification settings broadly aligned with general regulatory frameworks of selected countries. These are not official tax advice. You are responsible for reviewing your settings based on your individual situation. For specific compliance guidance, consult a tax professional.
KoinX configures default settings broadly aligned with Indian crypto tax regulations where applicable. However, the platform remains neutral and allows you to customise settings based on your situation. Settings are not enforced, as tax treatment can vary depending on individual circumstances.
Yes. You can change your country in Tax Settings to generate reports in that country’s format, such as Form 8949 for the USA or Schedule VDA for India. Note that changing country changes report format and calculation logic. It does not mean you owe taxes in that country. Your actual tax residency determines that.

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Accounting Method

No explicit legal mandate for FIFO exists for crypto in India. However, FIFO is the most widely used method, KoinX’s default, and what most CAs expect to see. Use FIFO unless your CA specifically advises otherwise.
For a year you have already filed: not advisable. The filed return should match your reports. For future years: technically possible, but consistency is strongly recommended. Changing methods creates complications with cost basis carry-forward across years.
Different methods match different purchase lots to your sales. FIFO uses your oldest purchases first. LIFO uses your newest purchases first. HIFO uses your highest-cost purchases first. Different cost basis means different gains, which means different tax. The same transaction can produce significantly different results depending on the method.

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Income Classification

It changes how gains are labelled in your report, not how they are calculated. When enabled, gains that would normally appear under Capital Gains are shown as Business Income in the report. Whether your activity should actually be treated as business income depends on your tax situation and your CA’s guidance.
They are still taxed, just differently. When enabled, rewards are taxed at receipt based on fair market value at that time. When disabled, rewards are recorded with zero cost basis and the entire sale value becomes a capital gain when you sell. Disabling the setting shifts when the tax applies, not whether it applies. Total tax can end up similar or higher.
When treated as income, the asset is taxed when received based on its fair market value at that time. That value also becomes the cost basis for future calculations. When treated as capital gains, the asset is only taxed when sold. The gain is calculated as sale price minus cost basis, and different tax rates may apply depending on your jurisdiction.

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Internal Transfer Settings

It is the maximum time difference in minutes between a withdrawal and a deposit for KoinX to automatically recognise them as an internal transfer between your own wallets. The default is 120 minutes. If your blockchain confirmations take longer than this, increase the window. If you are seeing incorrect matches, decrease it.
This is the allowed percentage difference between a withdrawal and deposit amount for them to still be matched as an internal transfer. The default is 5%. This accounts for network fees. For example, if you withdraw 1 ETH but receive 0.97 ETH after gas fees (a 3% difference), it will still be matched as a transfer.
This usually happens because the time between withdrawal and deposit exceeds your Time Window setting, the amount difference exceeds your Maximum Amount Difference setting, the destination wallet is not connected to KoinX, or Strict Timestamp Ordering is enabled and the deposit appeared before the withdrawal. Fix by adjusting these settings, connecting missing wallets, or manually categorising the transactions.

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Brokerage Fees

It depends on how much you trade and how much you pay in fees. When enabled, trading fees are included in your cost basis or deducted from the sale value, which reduces the reported gain slightly.Example: You sell crypto with a Rs. 1,00,000 gain and paid Rs. 5,000 in trading fees. With fee offset enabled, your adjusted gain is Rs. 95,000. At 30% tax, that is Rs. 28,500 instead of Rs. 30,000, saving Rs. 1,500.
Many users enable this because it reflects actual trading costs more accurately. However, Indian VDA tax rules do not explicitly clarify whether trading fees can be deducted beyond the cost of acquisition. Some interpretations treat them as part of acquisition cost, but treatment may vary. Consult your CA before relying on this setting for tax reporting.

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Report Regeneration

You need to regenerate reports for any financial year where you want the new settings applied. Reports for years you do not regenerate will remain unchanged.
No. Once you have purchased a plan for a financial year, you can regenerate reports unlimited times at no additional cost.
No. If you have already filed, do not regenerate. The filed return should match the reports you used when filing. Regenerating with new settings would create a mismatch with what you submitted. Only regenerate before filing, not after.

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Quick Reference: Default Settings

SettingDefaultNotes
Accounting MethodFIFOMost widely accepted
Treat Airdrops as IncomeEnabledAligned with VDA rules
Treat Rewards as IncomeEnabledAligned with VDA rules
Treat Interest as IncomeEnabledStandard treatment
Treat External Deposit as IncomeDisabledManual categorisation preferred
Offset Brokerage FeesDisabledCan be enabled if needed
Internal Transfer Time Window120 minWorks for most chains
Last modified on March 13, 2026