Cleartax launches crypto tax products, simplifying tax filings for investors

Cleartax tax filing platform has entered the cryptocurrency tax sector with the launch of crypto tax account and deposit products. It aims to provide a comprehensive solution for tax filers.

Clear looks to simplify the legal obligations for investors in digital assets by streamlining and enabling a rigorous tax process for investors and companies.

According to the rules, users cannot offset crypto losses across different tokens, which makes it difficult to track net profit/loss. The platform allows users to optimize crypto taxes to offset losses and manage Goods and Services Tax (GST) and TDS on crypto transactions. It also offers DIY tax management solutions for retail investors.

said Avinash Bolipali, Senior Director of the Crypto Business, Cleartax business lineWe see a huge opportunity in the market with an estimated 25,000 people filing taxes this year. The market is anywhere around Rs 100-120 crore and we expect to capture 50 per cent market share. The new offering is expected to generate revenue in the range of -40-40 crore. 50 crore platform will leverage the crypto community and influencers to inform users about the product.”

The platform is integrated with over 100 exchanges, including Coinbase, CoinDCX, Binance, WazirX, and many more. Apart from this, the platform also enables tax and administration services for Airdrops and Staking in cryptocurrencies. The amalgamation of different exchanges and offers enhances user experience with a single view of all their investments.

The platform leverages advanced algorithms and historical market data to ensure accurate tax calculations, while automatic API integration with many popular exchanges makes it easy to sync transactions in real time, the company said.