Partnership with ClearTax brings AI-powered tax filing, automated capital gains calculation, and post-filing support to the Paytm app

As India's income tax filing season gathers pace, fintech major Paytm has expanded its digital financial services ecosystem by introducing an affordable Income Tax Return (ITR) filing service starting at just ₹11. The service has been launched in partnership with ClearTax, one of India's leading tax and compliance technology platforms, allowing users to file their tax returns directly through the Paytm application.

The move marks Paytm's entry into India's rapidly growing tax-tech segment, where digital platforms are increasingly replacing traditional offline tax filing methods. By combining automated tax data imports, AI-assisted calculations and broker integrations, the company aims to simplify tax compliance while making professional-grade filing services accessible at a fraction of the usual cost.

A Strategic Expansion Beyond Payments

Paytm has steadily diversified beyond digital payments into financial services such as insurance, investments, wealth management, credit and lending. The addition of income tax filing further strengthens its ambition to become a comprehensive personal finance platform.

For millions of users who already rely on the Paytm app for everyday financial transactions, integrating tax filing into the same ecosystem offers convenience and reduces the need to switch between multiple platforms.

Industry experts believe the launch also reflects the growing convergence of fintech and tax technology, where automation and artificial intelligence are helping simplify regulatory compliance for individual taxpayers.

What Does the ₹11 Plan Include?

The entry-level plan offers several features that are typically available through premium online tax filing platforms. These include:

• Automatic import of taxpayer information from the Income Tax Department.

• Identification of the appropriate Income Tax Return (ITR) form.

• Automatic recommendation of the suitable tax regime.

• One-click import of trading and investment data from more than 80 stockbrokers.

• Automated computation of capital gains.

• Assistance in understanding and responding to Income Tax Department notices after filing.

These features significantly reduce manual data entry and minimise the chances of clerical errors during the filing process.

Capital Gains Calculation Made Easier for Investors

One of the biggest challenges faced by retail investors during tax filing is calculating capital gains from equity investments, mutual funds and other securities.

The Paytm-ClearTax platform addresses this issue by allowing users to import transaction data directly from supported brokers. Once imported, the software automatically computes short-term and long-term capital gains based on available transaction records.

This feature is expected to save considerable time for investors who execute multiple trades throughout the financial year.

Designed for Salaried Employees and First-Time Filers

The service is particularly suitable for taxpayers with relatively simple financial profiles, including:

• Salaried employees working with a single employer.

• Individuals earning income mainly from salary and savings accounts.

• First-time taxpayers filing returns digitally.

• Investors with limited stock market transactions.

• Individuals looking for an affordable filing solution.

For such users, pre-filled tax information can significantly reduce paperwork while improving filing efficiency.

Automation Speeds Up Filing—But Verification Remains Essential

Although the platform automates much of the filing process, tax professionals caution that taxpayers should never submit returns without reviewing every detail.

Before filing, users should verify:

• Salary income from Form 16.

• Interest earned across all bank accounts.

• Dividend income.

• Capital gains calculations.

• Tax deducted at source (TDS).

• Deductions claimed under various sections.

• Advance tax or self-assessment tax payments.

• Personal details and bank account information.

Even small inaccuracies can lead to tax mismatches, refund delays or notices from the Income Tax Department.

Complex Tax Situations Still Require Extra Attention

While automation works well for straightforward returns, taxpayers with more complicated financial arrangements should exercise additional caution.

The ₹11 filing plan may not fully address situations involving:

• Multiple employers during the financial year.

• House property income.

• Business or professional income.

• Foreign assets or overseas earnings.

• Large volumes of stock or derivatives trading.

• Income from multiple investment sources.

Such taxpayers may require additional disclosures, manual calculations or professional guidance before filing.

Should You Accept the Suggested Tax Regime?

One of the platform's automated features is recommending either the old tax regime or the new tax regime based on available information.

However, taxpayers should compare both options before making a final decision.

The old tax regime allows various deductions and exemptions, including investments under Section 80C, housing loan benefits and medical insurance deductions. The new regime offers lower tax rates but limits most exemptions.

Choosing the wrong regime could increase the overall tax liability, making a manual comparison worthwhile even if an automated recommendation is provided.

Simple Filing Process Through the Paytm App

Users can file their returns by following these steps:

1. Open the Paytm app.

2. Navigate to the Free Tools section.

3. Select "File your ITR with ClearTax."

4. Verify identity using the OTP sent to the registered email address.

5. Review the pre-filled information.

6. Complete verification and submit the income tax return.

The entire process has been designed to reduce paperwork while making tax compliance faster and more user-friendly.

Growing Demand for Digital Tax Filing

India has witnessed rapid growth in digital tax filing over the past few years as taxpayers increasingly prefer online platforms offering faster processing, automated calculations and improved convenience.

The government's continued push towards digital governance, coupled with wider adoption of fintech applications, has accelerated this transition. Services that integrate tax filing with everyday financial platforms could further increase voluntary tax compliance while reducing dependence on traditional filing methods.