Online tax filing platform, Cleartax on Monday announced its foray into the crypto tax calculation and filing segment with its new product “CryptoTax”. The platform has integrated with over 100 crypto exchanges, including Coinbase, CoinDCX, Binance, and WazirX, among others, to enable taxation services to the investors.
The amalgamation of various exchanges will provide users a single view of all their investments across platforms.
Avinash Polepally, senior director and crypto business head, Cleartax, said, “With this being the first year for Crypto taxation, users and chartered accountants (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.”
In her Budget 2022 speech, Finance Minister Nirmala Sitharaman had announced a 30 per cent tax on virtual digital assets. Additionally, a one per cent tax deducted at source (TDS) was also announced. The investors were also disallowed to offset their losses.
This year, the finance ministry stated that Rs 157.9 crore TDS was collected on payments made upon transfer of VDAs till March 31.
According to the announcement, Cleartax will allow users to optimise crypto taxes in terms of offsetting losses along with managing goods and services tax (GST) and TDS on crypto transactions. It will also offer do-it-yourself (DIY) taxation management solutions for retail investors.
In the current tax season, the platform expects over one million crypto tax filings.
“The platform leverages advanced algorithms and historical market data to ensure accurate tax calculations, while automatic API integration with several popular exchanges makes it easy to sync transactions in real-time,” the company said.