Fintech SaaS firm Clear (earlier Cleartax) announced the launch of crypto tax and portfolio management platform for enterprises and individual users, in response to the budget proposal to levy a flat 30 per cent tax on digital assets.
As the owner of India's largest SaaS platform for e-filing and financial services, Clear would be partnering with the crypto exchanges to help such investors seamlessly manage and track their crypto portfolios across wallets and exchanges, said the company's statement.
The release added that Clear would not only assist investors with reporting their TDS, taxes, and GST level invoices and deposits but would directly integrate with the exchanges to remove all the manual processes that traders currently undergo. All the crypto trading, investment and holding patterns would be declared in their asset-liability and tax will be automatically calculated. The users will get live portfolio performance dashboards and tax reports to be able to make real-time decisions.
Clear would tie up with crypto exchanges to help their customers adhere to the new tax norms.
The release quoted Archit Gupta, Co-founder and CEO of Clear, as saying, “…We currently have around 50,000 income tax filers reporting crypto income. However, considering the Government of India's rules on crypto taxes where users cannot offset losses across different crypto assets, tracking their transactions at the asset level and being able to track the net profit or loss of those trades becomes critical for crypto trading. Our crypto offering will help the existing as well as potential traders to manage their crypto portfolio against taxes and make their decisions with ease.”
Finance Minister Nirmala Sitharaman announced the Indian government's plans to issue its first digital rupee, a central bank digital currency (CBDC), most likely in the 2022-2023. The specific tax regime was announced witnessing the phenomenal increase in the magnitude and frequency of virtual asset transactions in the country recently.
Clear plans to bring ten million users on the crypto portfolio dashboard management system. The company has allocated $10 million to develop the crypto taxation product.
Nearly 20 million Indians jumped onto the crypto bandwagon in 2021. From picking up Bitcoin, the world's first and most popular currency, they started investing in Ethereum and eventually experimenting with alternative coins like Solana, Polygon, and Terraluna, and stable coins like Tether, too.
