Cleartax Enters Crypto Segment To Simplify Tax Calculations

Tax filing platform Cleartax on Monday (June 26) said it has forayed into crypto tax calculation and filing segment.

In a statement, Cleartax said it aims to simplify crypto taxation for CA community and individual investors by providing end-to-end solutions.

Cleartax said its platform has been integrated with over 100 crypto exchanges, including Coinbase, CoinDCX, Binance, and WazirX, among others. The amalgamation of various exchanges will provide users a single view of all their investments across platforms, it added.

“With this being the first year for crypto taxation, users and CAs are caught up in havoc to find easy solutions to do their tax reporting. It would be tedious for CAs to carry out crypto reporting manually and hence, require effective infrastructure. At the same time, users were charged hefty fees to get the tax reporting done via experts. Our team has carefully designed solutions to address the needs of both the CA community and crypto investors at an economical rate,” Avinash Polepally, senior director-crypto business head at Cleartax, said.

The platform expects over 1 Mn report filings in this tax season, Polepally said.

Founded in 2011 by Archit Gupta, Srivatsan Chari, and Ankit Solanki, Cleartax offers accounting and investment planning solutions for individuals and businesses along with individual wealth management solutions.

The startup has raised total funding of over $140 Mn so far and counts Elevation Capital, Peak XV Ventures, Y Combinator, Composite Capital, Founders Fund, and San Francisco-based fintech giant Stripe among its investors.

It must be noted that while presenting the Union Budget 2022-23, Finance Minister Nirmala Sitharaman introduced crypto taxation for the first time by announcing plans to tax virtual digital assets (VDAs), including private cryptocurrencies.

Under a new section, the government introduced a 30% tax on profit from crypto transactions, which became effective on April 1, 2022. In addition, 1% TDS (Tax Deductible at Source under section 194S of the Income Tax Act) was also levied on crypto transactions above INR 10,000 with effect from July 1, 2022.