Cleartax steps into the crypto market, simplifies crypto tax calculations for users

Cleartax, India’s largest tax filing platform has announced its foray into the crypto tax calculation and filing segment. The tax filing giant is looking to simplify the legal obligations of investors in digital assets by simplifying and enabling an accurate taxation process for a growing base of investors and businesses. The platform has been innovated keeping in mind the diverse needs of the stakeholders and hence, provides end-to-end solutions to become the one-stop crypto tax filing solution during the development stage.

As per rules, users cannot offset crypto losses across different crypto tokens, hence, making it difficult for users to track net P/L. The platform enables users to optimise crypto taxes in terms of offsetting losses along with managing GST and TDS on crypto transactions. It also offers DIY taxation management solutions for retail investors.

The platform has integrated with 100+ exchanges including Coinbase, CoinDCX, Binance, WazirX, and many others. Apart from this, the platform also enables Taxation and management services for Airdrops and staking in cryptos. The amalgamation of various exchanges and offerings enhances user experience with a single view of all their investments.

With this being the first year for Crypto taxation, users and 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, states Avinash Polepally, Senior Director-Crypto Business Head, Cleartax. He further added, “The platform has witnessed great traction from both businesses and consumers and expects over 1mn report filings in this tax season.”

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. With CryptoTax by Cleartax, Indian crypto investors and traders can confidently pursue their financial objectives without the burden of navigating the intricate complexities of tax obligations.

FM Nirmala Sitharama announced a 30% tax regime on VDA capital gains during the Union Budget 2022-23. Inspite of the hefty tax, the crypto ecosystem continued to see a rise in adoption among Indian investors. The research conducted by Statista states that India will soon touch the 156 million users mark by the end of 2023. The union finance ministry informed that Rs Rs 157.9 crore direct tax was collected at the source on payments made upon transfer of VDAs till March 2023. The government has brought crypto regulations as one of the strong topics to be considered at G20. The industry has pinned its hopes on the G20 discussions to formalise the crypto industry.