ClearTax is, a Delhi based startup that claims to be the easiest way to e-File Income Tax Returns in India. The company has an aim of helping people by preparing them to file their Income Tax Returns in the shortest time interval so as to maximize their tax deductions.
The company has been authorized by the Government of India for e-filing and since its inception in 2011; it has rapidly climbed the popularity charts in the country. In 2013, over 300,000 people made use of the website to e-file their taxes.
Archit Gupta started this company with his chartered accountant father Raja Ram Gupta. Archit was previously an engineer at Data Domain in Silicon Valley in India. This is the first time that a company which is only focused on the Indian market has joined Y Combinator. According to Gupta, this association has provided them access to resources which they couldn’t get in India.
The Indian government has a mission of making all tax filings online latest by 2016. ClearTax has a future plan of expanding beyond India but currently it only wants to focus on the booming Indian market in the sector.
Some 20 million people filled taxes online years ago in India, the figure rose to 27 million in 2013 and it is expected to cross 35 million in 2014. The estimated rate of increase in the number of online tax filers is 9 percent year over year.
ClearTax wants to change the notion of Indian people that taxes are a complex thing. They want to do this by their simple and accurate process.
The company is a product of ClearSharp Technology Pvt Ltd. ClearSharp itself is a very trusted name in the enterprise tax preparation and filing market.
The concept of e-filing is around 6 years old in India and in order to differentiate itself from other online tax services companies already in the business; ClearTax decided to regard e-filing as a “software problem”.
To use ClearTax, all one needs to do is upload the Form 16 onto the website and from there on the website will take over. The website’s software will automatically filter out relevant data; this means the users will not have to manually punch in any numbers or information.
ClearTax thinks its main competitor is the government itself. The government of India has its own online e-filing software but that is a tad difficult and complicated to use. ClearTax’s simple and easy interface gives its advantage over the government software.