TaxBuddy vs ClearTax: Which Tax Filing Platform Suits Your Requirements?

The rise of online tax filing platforms has brought about a range of subscription models to cater to various segments, from freelancers to businesses and high-net-worth individuals. These platforms offer a diverse range of services, from common tax filing to more specialized ones that cater to specific needs. This abundance of software options has made it easier than ever to file taxes from the comfort of your own home. Two of the leading platforms in this space are ClearTax and TaxBuddy. Each offers unique features and services to help you better manage your taxes. Many other platforms like EzTax and Tax2win can make tax filing a breeze and help you save money in the process.By exploring the services offered by each platform, you will better know the one that best suits your tax filing needs.

The comparative analysis of TaxBuddy vs ClearTax is presented in a tabular format as below:

Features incorporated by TaxBuddy

From income tax notice management to expert tax advisory services, TaxBuddy provides the tools and resources you need to streamline your tax planning and filing process.

With AI-based tax planning, personalized guidance and recommendations are available to help optimize your tax planning process.

It also offers assistance with ITR and GST filing, as well as support for TDS, TCS, and ROC filing, and provides GST compliance and advisory services.

Features incorporated by ClearTax

ClearTax is a powerful tax management platform that offers a wide range of features and services to make tax planning and filing easy. With auto-populated tax data and ITR verification, the platform makes it easy to quickly and accurately file your taxes.

LIVE ITR filing ensures a smooth and hassle-free process, while P/L and balance sheet preparation provides a comprehensive view of your financials. It also provides expert tax assistance to help guide you through any issues or concerns you may have.

For those with capital gains transactions, ClearTax offers specific tools and resources to ensure these get handled properly. Finally, its GST returns application status tracker keeps you informed and up-to-date on your GST filings.

TaxBuddy vs ClearTax: Let's delve into their dedicated pricing:

TaxBuddy provides users with a range of pricing plans tailored to their needs. These plans include the Salary + House Property Plan, Capital Gain Plan, and Business Plan / Professional / Freelancer Plan, each with its pricing structure based on the features offered.

For example, the Salary + House Property Plan starts at INR ₹799 per year. However, users with multiple salaried incomes and house properties and agricultural income can opt for the advanced plan, which starts at INR 1999 per year.

TaxBuddy also offers Capital Gain and Business Plans for users looking for more comprehensive services.

ClearTax also provides a variety of plans for individual and business users, each with its features and pricing. For individual users, ClearTax offers plans for filing returns, TDS on property sales, and live income tax filing, with plans starting at INR ₹1399 for salaried individuals. Business users can take advantage of plans for filing tax returns, filing GST, and legal compliance services, among others. With such a wide range of options, ClearTax offers a flexible and customizable approach to tax management.

Listing the benefits of both platforms:

TaxBuddy offers several advantages for users, including easy ITR filing with tax experts, tax planning assistance, and the potential to reduce taxes by up to 26%. Users can also receive assistance from tax professionals for filing GST returns, and TaxBuddy can help manage notices related to GST and ITR.

ClearTax offers a range of advantages for users, such as automatically pre filled tax data through a single click, live video call support for filing tax returns, and ITR verification post-e-filing. ClearTax is 128-bit SSI certified to ensure data security and aids with complex tax calculations.

Deconstructing TaxBuddy vs ClearTax concerning their specifics

ClearTax is an online software that can be accessed from any operating system. It also has a mobile app called Black, which allows you to easily file your income tax returns by uploading your Form 16 and verifying your tax details. In addition to filing returns, the app provides features such as live chat support with tax experts, data security with military-grade encryption, and management of all statutory compliances.

On the other hand, TaxBuddy has its own utility which facilitates simplified ITR filing. TaxBuddy has Tax Experts at its disposal, who can also provide manual calculation of Capital Gains, if necessary.

Once the user provides details of income, Form 16 in case of income from salary; or provides an access to their Income Tax Login, the TaxBuddy utility fetches the accurate information of the income sources of the user and accordingly proceeds with the ITR Computation and ITR Filing. Any and every combination of income sources are managed by the Tax Experts. Furthermore, users are only required to upload the Tax P&L of the Brokers for accurate calculation of Capital Gains.

On the other hand, TaxBuddy is compatible with all platforms. It offers a web-based version, as well as a desktop application that can be downloaded. TaxBuddy also provides a mobile application that makes it easy to file returns, receive ITR assistance, manage income tax notices, and more.

You can select the option that best suits your requirements and is practical for you.

What if you are a salaried individual with one or more investments or Crypto?

TaxBuddy has its own utility which facilitates simplified ITR filing. TaxBuddy has Tax Experts at its disposal, who can also provide manual calculation of Capital Gains, if necessary. 

Once the user provides details of income, Form 16 in case of income from salary; or provides an access to their Income Tax Login, the TaxBuddy utility fetches the accurate information of the income sources of the user and accordingly proceeds with the ITR Computation and ITR Filing. Any and every combination of income sources are managed by the Tax Experts. Furthermore, users are only required to upload the Tax P&L of the Brokers for accurate calculation of Capital Gains.

What if you are a freelancer with capital gains from stocks, mutual funds, crypto, and land?

In cases where an individual earns income from Freelancing activity, capital gains from stocks, mutual funds, crypto, and land, TaxBuddy assigns a dedicated Tax Expert to handle such a complex combination of income sources. This reduces the chances of error in the ITR Computation of the user and further reduces the chances of receiving notices from the IT Department. Thereby enhancing the ‘Peace of Mind’ of the users.