Tax filing platform Cleartax has expanded its services to include crypto tax calculation and filing, aiming to simplify crypto taxation for chartered accountants (CAs) and individual investors. The company announced that its platform has been integrated with more than 100 crypto exchanges, including popular ones like Coinbase, CoinDCX, Binance, and WazirX. This integration will provide users with a consolidated view of all their crypto investments across different platforms.
The move comes as the first tax season for cryptocurrencies approaches, creating a need for efficient solutions for tax reporting. CAs would find it challenging to manually handle crypto reporting, and users were often charged high fees to obtain expert assistance. Cleartax intends to bridge this gap by offering cost-effective infrastructure and tailored solutions for both CAs and crypto investors.
Avinash Polepally, the senior director of crypto business at Cleartax, expressed confidence in the platform’s capabilities and predicted over 1 million report filings during this tax season.
Founded in 2011, Cleartax provides accounting and investment planning solutions for individuals and businesses, including individual wealth management services. The startup has received more than $140 million in funding and boasts prominent investors such as Elevation Capital, Y Combinator, and Stripe.
The introduction of crypto taxation in India was announced by Finance Minister Nirmala Sitharaman during the Union Budget 2022-23. The government implemented a 30% tax on profits from crypto transactions starting from April 1, 2022. Additionally, a 1% Tax Deductible at Source (TDS) was levied on crypto transactions exceeding INR 10,000 from July 1, 2022, under section 194S of the Income Tax Act. Cleartax’s new offering aligns with these regulatory changes and aims to provide a user-friendly experience for crypto tax compliance.
