Cleartax Makes Foray Into Crypto Tax Segment, Expects 1 Million Deposits This Year

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An online tax reporting platform, Cleartax on Monday announced its foray into the crypto tax calculation and reporting 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 tax services for investors.

The merger of various exchanges will provide users with a single view of all their investments across all platforms.

Avinash Polepally, Senior Director and Head of Crypto Business, Cleartax, said: “As this is the first year crypto is taxed, users and Chartered Accountants (CAs) are caught off guard to find simple solutions to do their tax reporting. It would be cumbersome for certificate authorities to manually perform cryptographic reports and, therefore, require an efficient infrastructure.”

“At the same time, users had to pay high fees to have the tax declaration done by experts. Our team carefully crafted solutions to meet the needs of the CA community and crypto investors at an economical rate.”

In her 2022 budget speech, Finance Minister Nirmala Sitharaman announced a 30% tax on virtual digital assets. Additionally, a 1% withholding tax (TDS) was also announced. Investors were also not allowed to offset their losses.

This year, the Ministry of Finance said that Rs 157.9 crore TDS has been collected on payments made during the transfer of VDA till March 31.

According to the announcement, Cleartax will allow users to optimize crypto taxes in terms of offsetting losses as well as managing Goods and Services Tax (GST) and TDS on crypto transactions. It will also offer do-it-yourself (DIY) tax management solutions for retail investors.

In the current tax season, the platform expects over 1 million crypto tax returns.

“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 trades in real time,” the company said. .

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