Cleartax automates ITR-2 filing, ties up with Indian brokerage firms

By Leandra Monteiro

Cleartax, an Indian ITR filing platform has partnered with some of the top brokerage firms for filing of ITR-2.

Cleartax has one-click integrations with over 20 brokers that cover over 85% of the addressable market of brokers. Users of Cleartax can upload their transaction files in xls or pdf, from their broker, and the software auto-reads it. With no transaction limit on the platform, users with large volumes of transactions of different types of instruments can file ITR-2/3 seamlessly.

Cleartax has tied up with brokers such as Groww, Upstox, ICICI direct, Paytm Money, 5 Paisa and Dhan where customers of these brokerage firms can prepare their complex capital gains related schedules within a click of a few buttons using the API mechanism.

Cleartax’s ITR filing software can parse capital gains and loss statements from more than 22 brokers including Axis Securities, HDFC Securities, SBI Cap, Kotak Securities, Motilal Oswal, Sharekhan, Zerodha and Fyers. With its expertise in tax compliance and use of advanced API driven tech, prefill and automation of various schedules of ITR, Cleartax has revolutionized the process of filing ITR-2, making it easier and more efficient than ever before.

Traders who maintain their own repositories and databases can utilise a custom template provided by Cleartax to import transaction data for filing. Cleartax also enables users to submit Schedule AL (Assets and Liabilities), FSI (Foreign Sources Income), and FA (Foreign Assets) directly through the platform. This streamlines the process and reduces the chances of errors, saving time and adding convenience for taxpayers. Around 67 lakh tax filers filed ITR-2 and another 63 lakh filed ITR-3 last year.

Archit Gupta, Founder and CEO, Clear said, “Filing ITR 2 form can be complex for individuals due to various reasons, including time-consuming manual processes and complicated tax rules. Our API integration and file parsing, auto-populates the capital gains schedule, giving users high accuracy and also saves time. Also, around 18% 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.”

Priyanka Kulkarni, Senior Director – Partnerships & Strategy, Dhan said “Cleartax’s software can take care of any type of asset or capital gains situation. In just a few clicks our users are able to populate capital gains related schedules accurately, this saves them time and has cut down the hassle related to filing and reporting for gains/losses in ITR-2.”

Prakarsh Gagdani, Executive Director at 5 paisa said, “Usually, users struggle to report capital gains and it’s a very time-consuming exercise. We saw how simple and powerful Cleartax’s tax filing solution for ITR-2 is for taxpayers who have to report capital gains or losses. We are glad to offer this facility to our users”.”