Cleartax automates ITR-2 filing, teams up with Indian Brokerage Firms

Cleartax India’s most popular ITR filing platform becomes the most preferred partner for top brokerage firms for filing ITR-2. Cleartax has one-click integrations with over 20 brokers that cover over 85% of the addressable market of brokers. Users of Cleartax can upload their transaction files in xls or pdf, from their broker, and the software auto-reads it. With no transaction limit on the platform, users with large volumes of transactions of different types of instruments can file ITR-2/3 seamlessly.

Cleartax has tied up with India’s leading brokers such as Groww, Upstox, ICICI direct, Paytm Money, 5 Paisa, and Dhan where customers of these brokerage firms can prepare their complex capital gains-related schedules within a click of a few buttons using the API mechanism.

Cleartax’s ITR filing software can parse capital gains and loss statements from more than 22 brokers including Axis Securities, HDFC Securities, SBI Cap, Kotak Securities, Motilal Oswal, Sharekhan, Zerodha, and Flyers. With its expertise in tax compliance and the use of advanced API-driven tech, prefill, and automation of various schedules of ITR. Cleartax has revolutionized the process of filing ITR-2, making it easier and more efficient than ever before.

The partnership between Cleartax and the top discount brokers addresses the unique needs of individuals who often engage in complex and multiple stock market transactions, with thousands of line items. In such a scenario taxpayers struggle with ensuring compliance with tax laws, paying tax appropriately, and ensuring loss set off has taken place optimally. They may be dependent on the services of a person, which is both costly and an unreliable way to file. A lot of time is spent back and forth between the expert and the taxpayer.

Many taxpayers invest in different types of products such as F&O, intra-day trading, currency trades, foreign stocks, etc. By integrating with Cleartax, these brokers enable their clients to seamlessly import their financial data directly into the Cleartax platform, eliminating the need for manual data entry and reducing the chances of errors. Taxpayers benefit from automatic intra and inter-asset set off of losses as applicable under the Income Tax Act and reduce their overall tax liability. Filing on any portal other than Cleartax is 100% manual and prone to errors.

Traders who maintain their repositories and databases can utilize a custom template provided by Cleartax to import transaction data for filing. Cleartax also enables users to submit Schedule AL (Assets and Liabilities), FSI (Foreign Sources Income), and FA (Foreign Assets) directly through the platform. This streamlines the process and reduces the chances of errors, saving time and adding convenience for taxpayers. Around 67 lakh tax filers filed ITR-2 and another 63 lakh filed ITR-3 last year.

Simplifying the process of ITR 2 Filing

Sharing his insights on the development, Archit Gupta, Founder and CEO, Clear said, “Filing ITR 2 form can be complex for individuals due to various reasons, including time-consuming manual processes and complicated tax rules. Our API integration and file parsing, auto-populate the capital gains schedule, giving users high accuracy and also saves time. Also, around 18% of users use multiple broker platforms to buy and sell shares, necessitating the need to navigate different portals and accurately report the details, which increases the chances of errors. Our integration with brokers addresses these challenges by automatically adjusting short-term losses against long-term gains for the taxpayer; facilitating the carry forward of losses from previous years.”

The official spokesperson at Angel Broking said, “Reporting capital gains taxes is a cumbersome & time-consuming exercise for investors & traders. ClearTax’s simplified tax filing solution helps taxpayers in filing their taxes, we are glad to offer the facility to our users.”

From Dhan, Priyanka Kulkarni, Senior Director – Partnerships & Strategy said “ClearTax’s software can take care of any type of asset or capital gains situation. In just a few clicks our users can populate capital gains-related schedules accurately. This saves them time and has cut down the hassle related to filing and reporting for gains/losses in ITR-2.”

Prakarsh Gagdani, Executive Director at 5 paise said “Usually, users struggle to report capital gains and it’s a very time-consuming exercise. We saw how simple and powerful ClearTax’s tax filing solution for ITR-2 is for taxpayers who have to report capital gains or losses. We are glad to offer this facility to our users”.”

Cleartax has expanded its services to include tax-filing support for US stock income by integrating with platforms like INDMoney and Vested. Users can now conveniently drag and drop their statements for easy processing. Cleartax has introduced a dedicated section specifically for Bonds and Debentures. It will accommodate Sovereign Gold Bonds (SGBs), tax-free bonds, and other financial instruments. The platform has also simplified the terminology associated with Restricted Stock Units (RSUs) and Employee Stock Ownership Plans (ESOPs).

It provides users with clear examples for better understanding. Additionally, Cleartax parses all annexures in Form 16, offering users a detailed breakdown of their salary, which is a mandatory disclosure. With these innovative solutions, Cleartax has effectively tackled the complexities of tax filing. Furthermore, it presents users with a comprehensive and user-friendly platform that streamlines the process with ease and precision.