Clear partners 5Paisa to simplify the ITR filing for traders

By Leandra Monteiro

Clear (from Cleartax), Indian FinTech SaaS company, has partnered with 5Paisa, India’s only listed discount broker with over 2 million customers, to simplify income tax return filing for the traders.

The Clear- 5Paisa partnership enables the users (tax filers) to directly import the P&L data (equities, intraday, mutual funds, F&O derivatives, commodity derivatives, and currency derivatives) into Clear’s platform in a single click. They will not be required to prepare the excel template. Once the data is ingested, they can self-file their capital gains ITR within 7 minutes.

Commenting on the objective of the partnership, Archit Gupta, Founder and CEO of Clear, said, “Filing taxes for capital gains is a very complicated and tedious process. By associating with 5paisa, Clear will resolve the complexity in determining the turnover amount and expense amount in the case of intraday trades of equity and futures & options trades. We will automate the entire process, so traders don’t miss out on claiming transfer expenses. Clear will also resolve the challenges of categorising the funds while filing taxes for users with a particular income category through auto-selection of the correct ITR.”

The partnership will also enable year-round tax assistance by engaging and assisting 5 Paisa users by conducting online helpdesk and webinars on tax-related topics. As a content-rich organisation, Clear will also provide knowledge-sharing engagements on all-things tax through various educative blogs, one-pagers, etc., to the 5Paisa team, which they can share with their user base.

Ankit Fitkariwala, Chief Business Officer (CBO) at 5paisa.com said, “With the end of the financial year approaching, everyone is thinking of tax saving options on the investments that have been made over a period of time. Equity shares, mutual funds, intraday, etc., are the most common investments made, which provide a higher return rate than traditional fixed deposits. However, capital gains on them are taxed between 15% and 20%. Our partnership with Clear will help our users maximise their savings with accuracy.”

Clear is simplifying income tax filing easier for its users through its app called Black. Earlier this year, Clear, launched two new features – ‘Auto Regime Selection’ and ‘Prefill’ – on its portal and app. With prefill, Clear users can fill all Income Tax Return filing details by entering just the PAN number and the ‘Auto Regime Selection’ calculates taxes considering both the tax regimes – old/existing regime and new tax regime – and picks a tax regime with low tax outflow and recommend the same to the taxpayer.