I-T return filing: ClearTax ties up with key brokerage firms to automate ITR-2 form filing

Tax filing platform ClearTax has joined hands with Indian brokerage firms, such as Axis Securities, HDFC Securities, SBI Cap, Kotak Securities, Motilal Oswal, Sharekhan, Zerodha , Fyers, Groww, Upstox, ICICI Direct, Paytm Money, 5 Paisa, Dhan, and others more, in a bid to simplify the filing of income tax returns. ClearTax will now be offering automated filing of ITR-2.  

In a statement, ClearTax said it has one-click integrations with over 20 brokers that cover over 85 per cent of the addressable market of brokers. The ITR-2 is filled by individuals and Hindu undivided families (HUFs) not earning through their business or profession but from capital gains, foreign income or agriculture. 

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. 

In such a scenario taxpayers struggle with ensuring compliance with tax laws, paying tax appropriately and ensuring loss set off has taken place optimally.

Users of ClearTax can upload their transaction files in xls or pdf form via their broker and the software will auto-read 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. 

“With its expertise in tax compliance and use of advanced API-driven tech, prefill and automation of various schedules of ITR, ClearTax has revolutionised the process of filing ITR-2, making it easier and more efficient than ever before,” ClearTax said in a statement. 

ClearTax supports tax filing for income from US stocks and a dedicated section for bonds and debentures. Additionally, it parses all annexures in Form 16, providing users with a detailed salary breakdown. 

Moreover, ClearTax parses all annexures in Form 16, providing users with a detailed breakdown of their salary, which is a mandatory disclosure. 

How to file ITR-2 forms 

> If someone’s income comes from sources like salary or selling assets, they can file ITR-2.  

> On the income tax portal, select ITR-2 and go to 'General', then 'Income Schedule'.  

> Choose 'Schedule Capital Gains' and select the relevant asset type.  

> For short-term gains, add the total amount received and acquisition cost.  

> For long-term gains, provide details like purchase price, transaction dates, and selling price in Schedule 112A.  

> The software of ClearTax can parse the brokers’ capital gains and loss statements mentioned above. 

> Customers of these brokers can easily upload transaction files in XLS or PDF format from their brokers and the software auto-reads them.  

> The platform has no transaction limits, ensuring convenience for users with large transaction volumes. 

> 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 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. 

Archit Gupta, Founder and CEO, ClearTax, 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.”  

“Around 18 per cent 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. 

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.”

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