How To Do Your Crypto Taxes with ClearTax and Koinly
What is ClearTax?
ClearTax is India’s leading & most loved consumer brand for Income Tax filing for the last decade. ClearTax’s versatile SaaS offering ensures that crypto taxes are filed with ease. The platform has serviced more than 6 million individuals.
Can ClearTax handle cryptocurrency?
Yes. ClearTax can help you calculate taxes and report your crypto investments in your ITR - and thanks to a brand new partnership with Koinly, it's easier than ever to report your crypto taxes with ClearTax.
Why is Koinly the best crypto tax software for ClearTax?
Koinly has partnered with ClearTax to make filing your crypto taxes in India simple. All you need to do is set up your ClearTax account as usual. Under the crypto income section, you can connect to Koinly directly to import all your crypto transactions and crypto tax calculations straight from Koinly into ClearTax. Let's take a more detailed look at how it works.
How to do your crypto tax with ClearTax and Koinly
Whatever your crypto investments, Koinly can help you do your crypto taxes safely, quickly, and accurately. To begin, you'll need to sign in to Koinly and connect all of your crypto wallets like Binance, Coinbase, Trust Wallet, and hundreds more. Koinly will import your crypto transactions. Next, you'll connect Koinly to ClearTax, and then you will sync your crypto transactions to ClearTax.
Let's look at each step in the sections below:
How to connect ClearTax to Koinly
To start, add your personal details and details of any other income to ClearTax. Once you're ready to report your crypto income, head to income sources, and scroll down to find crypto income.
Select add details, and on the next page scroll down to import tax report and select Koinly.
This will bring up a pop-up that allows you to log in to your Koinly account from ClearTax and automatically import your crypto transactions and calculations from Koinly, straight into your ClearTax account ready to file.
Once you're connected, you can go ahead and continue reporting your crypto taxes in your ITR in ClearTax.
Special discounts for Koinly users are available from ClearTax on crypto ITR filing.
Your frequently asked questions...
Is crypto taxed in India?
Yes. Crypto is subject to tax in India. Profits from selling, trading, or spending crypto are subject to a 30% tax and a 1% TDS is applicable to many crypto transactions. Other transactions like mining may be subject to Income Tax. Learn more in our India Crypto Tax Guide.
Does ClearTax work with Koinly?
Yes. Koinly and ClearTax have teamed up to help you file your crypto taxes easily. You can import your crypto transactions from Koinly to ClearTax automatically in just a couple of clicks.
Can ClearTax handle Bitcoin taxes?
Yes, ClearTax can help you calculate Bitcoin taxes, but it depends on the exchanges you've used. ClearTax supports imports from popular Indian exchanges like Bitbns, WazirX, and CoinDCX, but doesn't support quite as many exchanges, wallets, and blockchains as dedicated crypto tax software like Koinly does. Fortunately, you can get around this by importing your transaction history from Koinly directly into ClearTax.
Can ClearTax handle DeFi taxes?
With the help of Koinly, yes ClearTax can handle DeFi taxes. While ClearTax may not have every integration with every single wallet or blockchain you might have used during your DeFi investments, Koinly does - and you can connect to Koinly from your ClearTax account to automatically import your crypto tax data.