ITR filing platform ClearTax on Thursday said it introduced a one-click option to integrate over 20 brokers covering over 85 per cent of the broker market, it said in a press release.
The new features aim to ensure ease of filing ITR-2 with the convenience of entering capital gains tax information.
It has partnered with some leading brokers, such as Groww, Upstox, and ICICI Direct, to enable customers to prepare complex capital gains schedules effortlessly using the Application Programming Interface (API) mechanism. The other partners include Axis Securities, HDFC Securities, SBI Cap, Kotak Securities, Motilal Oswal, Sharekhan, Zerodha and Fyers.
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Seamless Filing of Income Tax
If your income comes from sources like salary or selling assets, you can file ITR-2. On the income tax portal, select ITR-2 and go to 'General', then 'Income Schedule'. Choose 'Schedule Capital Gains' and select the relevant asset type. For short-term gains, add the total amount received and acquisition cost. For long-term gains, provide details like purchase price, transaction dates, and selling price in Schedule 112A. Here's where Cleartax can help.
The software can parse the brokers’ capital gains and loss statements mentioned above.
So customers of these brokers can easily upload transaction files in XLS or PDF format from their brokers and the software auto-reads them. The platform has no transaction limits, ensuring convenience for users with large transaction volumes.
Archit Gupta, founder and CEO of ClearTax, says that taxpayers often face challenges in meeting tax compliance, ensuring accurate tax payment, and optimising loss set-off. "Also, around 18 per cent 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 and facilitating the carry forward of losses from previous years," he said.
Depending on costly and unreliable assistance can lead to time-consuming back-and-forth communication between experts and taxpayers. ClearTax can thus save customers time and money.
Many taxpayers invest in various products like F&O and foreign stocks. In such cases, by integrating with Cleartax, brokers enable clients to seamlessly import financial data, eliminating manual data entry and reducing errors.
Taxpayers benefit from automatic intra and inter-asset set off losses as per the Income Tax Act, reducing their overall tax liability. Traders with their repositories can use Cleartax's custom template to import transaction data for filing.
The release said that ClearTax supports tax filing for income from US stocks and a dedicated section for bonds and debentures. Additionally, it parses all annexures in Form 16, providing users with a detailed salary breakdown.
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