Former ZebPay CEO Avinash Shekhar on January 12 announced the launch of his Web3-based crypto tax compliance start-up TaxNodes, aimed at simplifying the tax computing process. Additionally, it will also help crypto exchanges increase their internal controls and automate reconciliation and accounting.
Shekhar’s quitting and subsequent move to start-up in the Web3 and crypto tax compliance space was first reported exclusively by Moneycontrol in September 2022.
The start-up will offer a common platform to the retail investor to automate crypto taxation by bringing all of their crypto transactions across multiple exchanges, P2P, private wallets and different blockchains in one dashboard.
Shekhar, Founder & CEO, TaxNodes said, “I am really excited to embark on my entrepreneurial journey with the launch of TaxNodes. While the crypto industry has witnessed rapid growth in India, investors have been feeling overwhelmed due to lack of clarity on the taxes levied on their investments. A majority of them are facing challenges while calculating taxes on their investments.”
He added, “TaxNodes aims to address these challenges by identifying and offering end-to-end solutions to pain-points through comprehensive auditing tools to all stakeholders in the crypto ecosystem.”
TaxNodes focuses on accurate data compilation through near real-time profit/loss computation, portfolio tracking, dashboards and analysis. The platform plans to offer tax planning and year-end tax reports through which users can file their returns.
The company is working towards increasing internal controls and adherence to compliances related to taxation and regulations in the Crypto and Web 3 space.
TaxNodes also targets government regulators to increase the ability to ensure tax and other compliance from crypto users and exchanges by providing audit tools, thereby making the entire process efficient and seamless.
Crypto tax compliance has been an emerging segment in India, ever since the crypto tax was announced during the Union Budget 2022.
Meanwhile, ZebPay has reappointed Rahul Pagidipati as the in-charge and chief executive of the crypto exchange.
Given the ongoing macroeconomic challenges for the crypto sector, ZebPay had announced company-wide pay cuts with senior management taking larger cuts. The company just like its peers were also exploring alternate solutions and product offerings like SIPs, loans, fixed deposits, etc. ZebPay wants to position itself as a financial advisor.
“We are looking at repositioning ZebPay as a cryptocurrency financial advisor, almost like a crypto investing bank. We’ll need regulations for that and I believe that will be in place in three to four years. So, if you are a crypto start-up and need help to raise capital we can advise you on that,” Pagidipati said.
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