Income tax return: Cleartax introduces platform for auto filing of ITR-2

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Online tax filing platform Cleartax on Thursday announced the launch of an automatic filing feature for ITR-2. The ITR-2 is required for individuals and Hindu undivided families (HUFs) not earning through their business or profession but from capital gains, foreign income or agriculture. 

In its new feature, taxpayers can upload their transaction files in xls or pdf formats, and the software will auto-read it to calculate the tax liability.

For this, the platform has also partnered with several brokerage firms, including Groww, Upstox, ICICI Direct, Paytm Money, 5 Paisa and Dhan.

The feature will come in handy for people who invest through various instruments like intra-day trading, currency trades and foreign stocks. The users will be able to import their data from various brokerages and calculate the tax.

The platform also enables users to submit Schedule AL (Assets and Liabilities), FSI (Foreign Sources Income), and FA (Foreign Assets) directly through the platform.

Last year, around 6.7 million taxpayers filed ITR-2.

"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," said Archit Gupta, founder and chief executive officer (CEO) of Clear.

Prakarsh Gagdani, executive director at 5 paisa, said, "Usually, users struggle to report capital gains and it is a very time-consuming exercise...We are glad to offer this facility to our users."

Priyanka Kulkarni, senior director of Partnerships and Strategy at Dhan, added, "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."