TaxNodes Bags Funding For Simplifying Crypto Tax Computation

Crypto tax computation startup TaxNodes has raised seed funding of $1.6 Mn. The funding round saw participation from ZebPay CEO Rahul Pagidipati, WazirX founder Nischal Shetty, CoinSwitch CEO Ashish Singhal, and Reflexical founder Ajeet Khurana.

According to the startup, the funds will be used to simplify tax computation, and provide end-to-end solutions for individuals navigating the complexities of crypto taxation. The startup is developing an AI-assisted tax advisory model for individuals to provide control & compliance using GPT-like Large Language Model.

Established in 2022 by Avinash Shekhar, the startup is a crypto tax computation and expert-assisted ITR filing platform.

TaxNodes claims to have witnessed a 5X month-on-month spike in its customer base. It aims to play a pivotal role in ensuring a convenient and safe crypto ecosystem, facilitating smoother operations and regulatory adherence.

Additionally, TaxNodes has formed partnerships with crypto exchanges ZebPay, WazirX and Giottus to help crypto users to comply with taxation laws. 

Commenting on the investment, Shekhar said, “This funding will enable us to provide a complete solution for crypto natives making it easier for them to handle their tax obligations. With our advanced tax computation engine, a team of seasoned crypto experts, and a full-stack solution, we aim to simplify the complexities of crypto taxation and filing, ensuring accuracy, compliance, and peace of mind for our users.”

He further added that the freshly raised funds will initiate the startup’s R&D efforts to create innovative products that cater to crypto exchanges, investors and finance professionals, including crypto auditors.

As a startup in the crypto taxation industry, TaxNodes identifies the challenges faced by crypto natives in accurately computing profits and losses, reconciling transactions across multiple centralised and decentralised platforms, and fulfilling tax obligations.

The Indian crypto exchange landscape has raised concerns across the government officials on the increased chances of money laundering. Citing this, the government issued a notification in March about bringing crypto trading and other virtual digital assets (VDAs) under the Prevention of Money Laundering Act (PMLA) provisions, 2002.

In fact, during the G20 meetings, the member nations have also proposed to explore the idea of banning cryptocurrencies. The RBI Governor Shaktikanta Das said that a major chunk of the member nations agreed that cryptocurrencies can be a threat to financial stability and monetary systems.

Amid all such speculations and proposals, earlier this year, Bengaluru-based crypto startup WeTrade announced that it would shut down due to the uncertainty in the crypto market.