Bengaluru, July 11, 2018: India’s leading tax, finance, and business compliance company, ClearTax and India’s leading technology-driven brokerage firm, Zerodha have partnered to offer tax filing solutions to traders and investors across India.
Investors who deal with complex securities such as equity, derivatives, commodity, currency, mutual funds etc, find tax compliance challenging. Income tax computation is loaded with complexities for investors and traders as it varies with the type of security, the duration of holdings, and the mode of trading. A trader needs a smart and efficient tax compliance solution to be able to focus all energies and efforts on their core business. Zerodha found its ideal partner in ClearTax to address tax woes of over 9 lakh customers on its platform.
The manual entry of hundreds of equity or derivatives transactions is an extremely tedious process and increases exposure to errors that may lead to penalties. Integration between ClearTax and Zerodha platforms aims to help avoid such issues and makes tax filing possible with just a few clicks. Users can view a detailed summary of total turnover, long-term gains, short-term gains, total capital gains and audit eligibility on the ClearTax portal by simply uploading the Zerodha P&L report.
The ClearTax software calculates accurate tax liability and auto-prepares the ITR for users. At the same time allowing users to review and modify as appropriate. Should tax filers need help, ClearTax CA-assisted plans are available at discounted rates to Zerodha clients.
Changes in the taxation of equity holdings announced in Budget 2018 has further left the investor community perplexed when it comes to tax computation. Starting April 1, 2018, long-term capital gains on stocks and equity mutual funds will be taxed at 10% for gains made over Rs 1 lakh. As lakhs of investors prepare for the change in regime in relation to equity taxes, ClearTax’s seamless integration can help with accurate tax compliance.
Further, traders who declare business income have to file advance tax every quarter basis this new regime. Error-free self-assessment and on-time payment of advance tax is yet another service that this partnership will address.
Archit Gupta, Founder, and CEO of ClearTax said, “Past solutions to taxation for investors and traders weren’t simply good enough. The introduction of tax on Long Term Capital Gain from 1st April has sharply increased the pain of Investors and traders. We realised that with the ClearTax technology, we can fix this pain by automating tax return preparation. Our one click integration with Zerodha will solve tax filing and tax planning for the investor community. We are proud to work with Nithin and his team.”
Speaking more on the association, Nithin Kamath, Founder & CEO of Zerodha said, “I remember a time (maybe about 9 years ago) I had the opportunity to meet one of those hard to find Chartered Accountants who knew both taxation and markets quite well. At that point in time, nobody had blogged about it online, no good articles were written on the topic and so resources to learn about markets and taxation were difficult, if not impossible to come by. Thinking back had I known more about the topic, I would have greatly benefited. I’m glad that ClearTax is now enabling traders to file taxes online and so save a significant amount of time and money in the process.”
ClearTax, India’s leading tax, finance and business compliance company, offers intelligent software solutions for compliance with direct and indirect taxes. ClearTax is on a mission to simplify the financial lives of businesses and individuals.
ClearTax’s income tax return e-filing solution is used by over 2.5 million Indian taxpayers making it India’s number one e-filing platform. Over 25,000 CA Firms use the ClearTax platform for tax & TDS returns. Thousands of employers use ClearTax to generate Form 16s. ClearTax also offers expert services to startups for incorporation and legal compliance.
ClearTax Invest was launched with the idea to help individuals with smart investing strategies. The mutual funds are handpicked and thoroughly researched by experts to help investors build wealth in line with their financial goals.
The ClearTax GST Software helps businesses to comply with government GST rules without any hassles. The software is applicable to small, medium and large business for everything GST. It is currently used by over 5 lakh businesses, 1.5 lakh CAs and tax professionals, and over 500 large enterprises.
ClearTax EWayBill is an easy, smart and accurate software that generates consolidated e-way bills for business. The software is 10 times faster with 100+ validations to avoid errors.
ClearTax was founded by Archit Gupta along with Srivatsan Chari and Ankit Solanki in 2011. Archit, co-founder & CEO, is an IIT Guwahati alumni with a BTech in Computer Science. He holds a Masters in Computer Science from the University of Wisconsin-Madison. The company has 600+ employees and is headquartered in Bangalore, with a presence in Delhi, Mumbai, and Hyderabad.
ClearTax is Y-Combinator’s first India-focused investment. ClearTax raised $12 Mn in Series-A round of funding from SAIF Partners in 2016. It also counts Sequoia Capital, Max Levchin, Scott Bannister, Neeraj Arora, Vijay Shekhar Sharma and Naval Ravikant as its investors.
Zerodha is an Indian financial service company (member of NSE, BSE, MCX, MCX-SX) that offers brokerage-free equity investments, retail and institutional broking, currencies and commodities trading, and mutual funds. Founded in 2010, Zerodha is known for its discount pricing model and innovative use of technology. It is headquartered in Bangalore and has a physical presence in all major Indian cities. As of 2018, it is the second largest broker in India with a loyal client base of over 9 lakhs clients and contributes up to 10% of retail trading volumes on Indian stock exchanges.