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 percent 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.
"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," said founder and CEO ClearTax, Archit Gupta.
"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," said founder and CEO of Zerodha, Nithin Kamath.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)