Avalanche C-Chain (AVAX)’s benefits, such as high scalability, a strong security guarantee, and increased privacy, make it an attractive platform for investors to build decentralised applications and handle high transaction volumes at lower costs.
If you’re an investor engaging in Avalanche C-Chain (AVAX) transactional activities, it’s important to be aware of potential tax liabilities.
KoinX streamlines managing crypto taxes, portfolios, and accounting for investors through automated systems. It simplifies the generation of Avalanche C-Chain (AVAX) tax reports, making it easier for everyone to stay on top of their tax game in the crypto space.
This post shows an in-depth explanation of how to generate your Avalanche C-Chain (AVAX) tax report from KoinX.
A step-by-step guide on How to Integrate your Avalanche C-Chain (AVAX) chain with KoinX
KoinX allows you to calculate your crypto taxes with ease. Here’s how you integrate it with the Avalanche C-Chain (AVAX) chain:
Step 1: The first step would be signing in to your KoinX account with your credentials.
Step 2: Go to the “Integrations section” at the top and select the “Blockchains” category.
Step 3: Select the Avalanche C-Chain (AVAX) option from the list of blockchains available.
Step 4: You can add a custom name of your choice. This name will help you identify your wallet later on.
Step 5: Finally, enter your public address. This is nothing but the receiving address or account address that you see on your wallet, like “Metamask” or “Trust”.
Step 6: Once you’ve entered your public address, double-check that it’s correct, and then hit the “Submit” button to complete the integration process.
All your transactions on the Avalanche C-Chain (AVAX) chain are now added to KoinX. We import all your transactions across all years, including ERC-20 transactions.
Watch how to generate your Avalanche C-Chain (AVAX) tax report with KoinX
Take the first step towards stress-free crypto tax reporting. Watch our tutorial on generating your Avalanche C-Chain (AVAX) tax report with KoinX and start saving your precious time and money today!
We are there where it is a crypto tax liability to adhere to.
Important Things to Consider While Generating Your Avalanche C-Chain (AVAX) Tax Report with KoinX
- Please make sure that all of your integrations have been connected.
- KoinX automatically synchronises transactions from your wallet address at regular intervals. However, if you need to synchronise it at any other time, please utilise the ‘Sync Now’ feature available on KoinX.
How To Easily Calculate & File Your Avalanche C-Chain (AVAX) Taxes using KoinX
Step 1: Add all the chains and exchanges where you have an account
KoinX supports a wide range of major crypto exchanges and wallets, which enables anyone to conveniently import all their transaction data, in one place.
Step 2: Review your transactions.
KoinX will automatically categorise all transactions and compute gains and losses accordingly, ensuring 100 percent accuracy and compliance with the latest tax regulations.
Note: If you see warnings in your portfolio, refer to this article to fix the issues.
Step 3: Generate your tax reports for the selected Financial Year
KoinX produces all the essential tax reports while providing a clear breakdown of one’s crypto tax obligations.
You have the option to categorise your trades as Capital Gains or as Business Income.
If you are trading in crypto as a secondary source of income (like just passively investing for returns) then please select Capital Gains.
If you are trading with the intent of making crypto as your primary source of income, then please select Business Income.
Step 4: File your taxes
Export tax reports directly from KoinX and import them into your preferred tax software, or provide them to your tax professional for swift and hassle-free filing.
Frequently Asked Questions
Do I need to report my Avalanche C-Chain(AVAX) for tax purposes?
Yes. The government of India (in the 2022 Budget) has mandated that trading, selling, or spending cryptocurrencies is subject to a 30% tax on profits. This regulation also applies to Avalanche C-Chain (AVAX) transactions.
Does Avalanche C-Chain(AVAX) provide tax reports?
Avalanche C-Chain (AVAX) does not offer any built-in tax reporting features. However, investors can track and generate their crypto tax reports for their AVAX investments by integrating their accounts with KoinX, streamlining the process and simplifying tax season.
How are Avalanche C-Chain(AVAX) transactions taxed?
All of your transactions on the Avalanche C-Chain (AVAX) (trading, selling, or spending crypto) will be subject to a 30% tax on profits. Additionally, if you sell crypto assets for more than INR 50,000 or INR 10,000, as applicable, in a single financial year, investors will be subject to a 1% TDS (Tax Deducted at Source).
How does Avalanche C-Chain(AVAX) tax reporting with KoinX work?
After integrating your Avalanche C-Chain (AVAX) with KoinX, you will have access to downloadable tax reports that can either be directly used to file your taxes or can be shared with your tax professional to be filed.
What are the most common issues with importing transactions from the Avalanche C-Chain(AVAX) to KoinX?
Even though the KoinX and Avalanche C-Chain integration is seamless, there are instances where you sometimes upload the wrong address or the address might be missing characters. Try double-checking the file before uploading.
How do I troubleshoot my Avalanche C-Chain(AVAX) integration with KoinX?
If a problem still persists even after following the above steps, please feel free to reach out to our support team by either using our chat, social media, or emailing us at support@koinx.com. Our customer support executive will reach out to you as soon as possible and will be happy to address all of your queries.
