1. What does the ‘locked in’ status in the ‘Manage EARN’ section mean?
A: If your EARN order is ‘locked in’ it means that you are currently earning rewards on your locked in cryptos. However, do note that there is a waiting period (“Warm-up Period”) before your EARN order gets activated on the blockchain. Once the warm-up Period is completed, rewards are distributed by the blockchain.
If you want to trade your locked-in crypto, then you can choose to unlock it from the EARN program and the locked-in cryptos with rewards (if applicable as explained above) will be credited to your portfolio after the cool-off period.
2. What does the ‘cool-off’ status in the Manage EARN section mean?
A: Your EARN order is currently in the cool-off period. You will have to wait for the mentioned days for your crypto to get unlocked and rewards to reflect in your CoinSwitch user account.
3. What does the ‘Unlocked’ status in the Manage EARN section mean?
A: Your EARN order has been unlocked since you clicked on ‘Unlock’. You will have to wait for the mentioned days in the cool-off period for your crypto and rewards to reflect in your CoinSwitch user account.
4. What does the ‘Credited’ status in the Manage EARN section mean?
A: Your EARN order was completed successfully.
If your lock-in duration was before 7 days (or any other period as may be decided by CoinSwitch from time to time), your locked-in crypto has been credited to your CoinSwitch user account.
If your lock-in duration was more than seven days (or any other period as may be decided by CoinSwitch from time to time), both your crypto and the rewards have been credited to your CoinSwitch user account.
5. Can I download my invoice?
A: Yes. Your invoice is available for download once your rewards are credited to your CoinSwitch user account.
6. Do I need to do an additional KYC to earn rewards with CoinSwitch EARN?
A: No, you will not need to undergo any additional KYC processes to get rewards with CoinSwitch EARN.
7. Are my CoinSwitch EARN rewards taxable?
A: You should consult with your tax advisor on the taxation of the crypto rewards. We are giving general information on taxation below, and this should not be treated as any tax or legal advice.
At present, in our opinion, TDS is not applicable on your EARN rewards. However, as per tax law, crypto received as rewards are taxable as per the recipient’s income slab rate in the year of receipt of rewards.
Hence, you have to consider the crypto received as rewards for payment of advance tax/self assessment tax, if any.
Further, tax at the rate of 30% including applicable surcharge and cess has to be paid on the profit earned on crypto in the year in which crypto received as rewards are sold.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.