Cryptact, supporting cryptoasset tax filing in India - Second phase of overseas expansion | CoinDesk JAPAN

Pafin, which operates the automatic profit and loss calculation service "Cryptact" for cryptoassets (virtual currencies), announced on July 3 that it has added new features to support India’s tax return and cryptoassets tax system, and has begun services for the country. As a result, cryptoassets investors residing in India will be able to utilize the service in preparation for the tax return deadline of September 15, 2025 (the regular deadline is at the end of July, with an extension available for the 2024 fiscal year). This marks the company’s second overseas expansion, following Canada in February of this year.

India is a major hub for the cryptoassets market with a population of 1.4 billion. The company cited the expanding usage within the country and the strict tax regulations that could impose up to 7 years of imprisonment for underreporting or falsely reporting profits from cryptoassets, indicating a high demand for accurate profit and loss calculation tools.

Cryptact supports automatic profit and loss calculations for domestic and international exchanges, as well as NFT and DeFi (decentralized finance) transactions, with over 150,000 users in Japan. As a new feature, it is now possible to select Indian Rupee as the accounting currency, and a report output function that complies with the country's tax return format has also been implemented.

The release cites a survey by the cryptoassets payment company Triple-A, which indicates that the number of cryptoasset holders in India will reach approximately 120 million, or 8.3% of the population, by 2024. Additionally, according to a report by the blockchain security company Chainalysis, the country has ranked first in the world in cryptoasset adoption rates for two consecutive years. Meanwhile, Japan was ranked 23rd in the world as of 2024.

In India, a taxation system for cryptoassets was introduced in 2022, imposing a 30% capital gains tax and a 1% withholding tax on transaction amounts. However, it was also reported that in February this year, a review of regulations is being considered in light of developments from the Trump administration in the U.S.

Related article: India reassesses its stance on cryptoassets in response to global trends: reports

The company plans to continue its global expansion and is moving forward with the selection of new markets following Canada and India.

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