ClearTax addresses problems of traders in filing income tax returns with new platform

While salaried employees usually file ITR-1 or ITR-2 or 2A, F&O traders and those who conduct intra-day trading must file ITR-4.

Archit Gupta, Founder and CEO, ClearTax. Photo: ClearTax official website

Filing of income tax returns (ITR) for those who trade in stocks and future and options (F&O) can be a bit complex and is unlike when filing for salary earning individuals. While salaried employees usually file ITR-1 or ITR-2 or 2A, F&O traders and those who conduct intra-day trading must file ITR-4.

It is not only traders but also those who are salaried employees but who choose to trade in the stock market. Archit Gupta, Founder & CEO, ClearTax.com says he a solution that helps traders in filing their income tax returns more easily.

1. What are the problems faced by traders in filing income tax returns?

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Traders have a lot of confusion about whether they should e-file if they have a loss. And some traders skip reporting their trades in their return, sometimes leading to a notice from the tax department. Also traders need clarity on expenses which they can claim for their business. Not many have the time and bandwidth to keep a person for book keeping and avail reliable audit services. ClearTax helps address all of these concerns.

2. How is Cleartax solving the problem of traders in filing the income tax returns?

ClearTax has launched a unique plan to address needs of traders comprehensively. Besides tax return preparation, traders can avail of tax saving advice from our experts. Our experts have done thousands of business tax returns. Our CAs understands the nuances of returns with F&O and stock trading. In the same plan we are offering book keeping service and CA support over phone and email. Since we have country-wide network of CAs, we can also help our customers connect with CAs when they need an audit of their books of accounts. We work transparently and help our customers fully understand their return. This helps them stay in control without the hassle.

3. How is it different for traders filing their income tax returns than for average salary earners?

Those who are salaried usually file ITR-1 or ITR-2 or 2A, however traders who do F&O dealings or intra-day stock trading must file ITR-4 to report these as business income. While the salaried cannot claim expenses in their tax return, those who have income from a business can claim its expenses in their tax return. As an individual you may have both salary income and income from F&O business or stock trading in your return and these incomes are reported separately in your ITR-4.

4. How is this new platform different from the other platform it offers to others?

This product has been specifically designed for traders. We understand business tax returns in depth. We are the only player which has a tech enabled self e-filing platform for businesses. Close to 10,000 traders have already filed their return with us. Our CAs understand nuances of F&O trading as well as stock trading helping our customers make the most of tax saving.

5. By how much has this increased the filing of ITR for traders?

ClearTax has been receiving a lot of enquiries from the stock trading taxpayers. Traders who have filed with us appreciate the convenience offered and expertise of our team. We’ve seen significant growth in trading returns this time on ClearTax.

6. How much do they have to pay for this service?

This service costs Rs 6,500 (+ taxes).

7. How long does the entire process for filing take?

Traders can finish e-filing in 2 days or so assuming they have trading statements, bank accounts details, details of expenses etc ready to provide to the CA.

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