e-filing ITR-2: Cleartax automates process for F&O, intra-day, currency and foreign stocks traders

 


Income Tax Return (ITR-2) filing online for AY 2023-24: Users of the popular ITR filing platform Cleartax will now be able to complete automated filing of ITR-2.

Income Tax Return (ITR-2) filing online for AY 2023-24: Users of the popular ITR filing platform Cleartax will now be able to complete automated filing of ITR-2. In a statement, Cleartax said it has one-click integrations with over 20 brokers that cover over 85% of the addressable market of brokers. 

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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, the company said. 

Cleartax has tied up with India’s leading 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. 

As per the statement, 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,” the tax-filing company said. 

“The partnership between Cleartax and the top discount brokers addresses the unique needs of individuals who often engage in complex and multiple stock market transactions, with thousands of line items,” it added. 

Read More: How To Claim Deductions While Filing Your ITR

Taxpayers often struggle with ensuring compliance with tax laws, paying tax appropriately and ensuring loss set off has taken place optimally. They may be dependent on the services of a person, which is both costly and an unreliable way to file. A lot of time is spent back and forth between the expert and the taxpayer. 

WHO WILL BENEFIT

Around 67 lakh tax filers filed ITR-2 and another 63 lakh filed ITR-3 last year. 

Many taxpayers invest in different types of products such as F&O, intra-day trading, currency trades, foreign stocks etc. By integrating with Cleartax, these brokers enable their clients to seamlessly import their financial data directly into the Cleartax platform, eliminating the need for manual data entry and reducing the chances of errors, the statement said. 

Further, taxpayers will benefit from automatic intra and inter-asset set off of losses as applicable under the Income Tax Act and reduce their overall tax liability. 

Traders who maintain their own repositories and databases can utilize 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. 

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“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,” said Archit Gupta, Founder and CEO, Clear. 

“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,” he added. 

Cleartax now also supports tax-filing for US stock income by parsing statements from platforms like INDMoney and Vested, allowing users to easily drag and drop their statements. 

To accommodate the adoption of Sovereign Gold Bonds (SGBs), tax-free bonds, and other instruments, the platform has introduced a dedicated section for Bonds and Debentures. It has simplified the nomenclature related to Restricted Stock Units (RSUs) and Employee Stock Ownership Plans (ESOPs), providing clear examples for users. Moreover, Cleartax parses all annexures in Form 16, providing users with a detailed breakdown of their salary, which is a mandatory disclosure. 

Disclaimer: The above content is based on a press release issued by Cleartax. Please contact the tax filing platform or tax experts for any ITR-related queries.

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