India’s largest tax filing platform, Cleartax, has entered the crypto tax calculation and filing market to simplify the legal obligations for investors in digital assets. The platform aims to provide end-to-end solutions and become a one-stop crypto tax filing solution. It helps users optimize their crypto taxes by offsetting losses, managing GST and TDS on crypto transactions, and offers DIY taxation management solutions for retail investors.
Cleartax has integrated with over 100 exchanges, including Coinbase, CoinDCX, Binance, and WazirX, to enhance the user experience by providing a single view of all their investments. The platform also offers taxation and management services for airdrops and staking in cryptocurrencies.
Avinash Polepally, Senior Director and Crypto Business Head at Cleartax, emphasized the need for easy solutions for tax reporting in the first year of crypto taxation. He highlighted the platform’s design to address the needs of both the CA community (chartered accountants) and crypto investors at an affordable rate. Cleartax expects to receive over 1 million report filings in the current tax season.
Despite the Indian government’s announcement of a 30% tax on virtual currency capital gains, the crypto ecosystem has witnessed increasing adoption among Indian investors. The research firm Statista predicts that India will reach 156 million crypto users by the end of 2023. The government has also prioritized crypto regulations in discussions at the G20, and the industry hopes for formalization of the crypto industry through these discussions.
Cleartax said that it leverages advanced algorithms and historical market data to ensure accurate tax calculations. The platform offers automatic API integration with popular exchanges, facilitating real-time transaction syncing.
By using CryptoTax by Cleartax, Indian crypto investors and traders can confidently pursue their financial objectives while navigating the complexities of tax obligations.