Online tax, finance, and compliance solutions provider ClearTax has launched a new AI-based tax and financial planning algorithm on the ClearTax Invest platform. With the new platform, investors will be able to get an accurate and personalized assessment of their investment profile based on their financial data, income, etc. and the algorithm will tell them exactly how much and where they should invest to save tax.
ClearTax said in a statement that it observed that the average amount of possible tax savings a taxpayer is currently missing out on is over Rs 20,000 a year. According to data from its platform, on a country-wide level, less than 50% of those with a salary above Rs 7 lakh save taxes by fully exhausting Section 80C. Surprisingly, 90% of women taxpayers do not optimize their tax-saving benefits through investments.
â€śAmong the most common reasons for this is that finance and taxes are complex topics for many people. With companies across the country expected to start collecting annual investment proofs from their employees in January 2019, this tool on the ClearTax Invest platform will come especially handy to millions of taxpayers while they are planning to save on income tax for the current financial year,â€ť it said in a statement.
On ClearTax Invest, users can choose from the best and top performing mutual funds to invest in, across two main categories, namely tax-saving and wealth generation. The platform allows users to invest in just 5 minutes without any paperwork.
With the launch of the AI-driven tax planning feature, ClearTax claims that users will benefit from an additional layer of personalization of how much they can exactly save and how can they save it. For example, with a tax-saving investment instrument such as ELSS (Equity Linked Saving Scheme), investors can save up to Rs 46,800 in taxes every financial year by investing up to Rs 1.5 lakh under Section 80 C.
Archit Gupta, Founder, and CEO, ClearTax said, â€śWith a combination of automation and human expertise to guide the platformâ€™s algorithms, we are confident that our users will find this feature extremely helpful in simplifying their tax planning efforts. As many as 20 million Indian taxpayers stand to benefit from The ClearTax Invest platform who can invest in tax-saving mutual funds which qualify for Section 80C. More importantly, it will save them those last-minute troubles of having to find the right investment options before they file their IT returns and then waiting for months to be refunded the surplus tax they may have paid.â€ť
After ClearTaxâ€™s recent funding, where it received a capital infusion of $50 million, it says that it has been working towards amplifying its growth by making substantial investments towards its tech infrastructure. The company is also expanding both its B2B and B2C offerings, with the mutual fund and tax-saving platform â€“ ClearTax Invest, set to be a key area of focus for the fin-tech company over the next three years.
ClearTax plans to add half a million new investors in 2019 through its platform by leveraging its AI-driven capabilities to create value for its users and achieve this goal. To this end, the company is also looking to expand its teams with finance and tech experts, engineers, etc. to create a robust investment platform, and deliver a superior experience to customers when transacting on it.