The short verdict
ClearTax is the most polished way to file your own ITR in India. It reads your Form 16, pulls your prefilled data, imports capital gains from your broker, and compares the old and new regime for you. For anyone whose return is more than a plain salary, it saves real time and reduces mistakes.
It is not the cheapest option, and the plan you actually need is usually a paid one. But if your return has investments, multiple income sources, or business income, that fee buys back an evening of confusion and lowers your risk of an error.
Use ClearTax if you have capital gains, freelance income, or you simply want your return checked and done fast. Skip it if you have one Form 16 and nothing else. The free government portal is enough for that.
Ready to file? File your ITR on ClearTax. We may earn a referral reward at no extra cost to you.
What is ClearTax?
ClearTax is one of India’s largest online tax platforms. It lets individuals file income tax returns, and it also serves businesses with GST and invoicing tools. For this review we focused only on individual ITR filing, which is what most readers come here for.
The core promise is simple: instead of decoding tax rules yourself on the government portal, you upload your documents and ClearTax turns them into a filed return.
Filing an ITR on ClearTax, step by step
Here is what the actual flow looked like when we filed a salaried return with some capital gains.
- Sign in and link your PAN. ClearTax pulls your prefilled data from the Income Tax portal, so your salary, TDS and interest income appear automatically.
- Upload Form 16. The platform reads the PDF and fills in your salary breakup and tax deducted. This is the step that saves the most time.
- Add other income. Bank interest, capital gains, rental income. For investments, you import a broker statement instead of typing anything.
- Claim deductions. 80C, 80D, home loan interest, donations. It prompts you for common ones so you do not miss them.
- Compare regimes. It shows your tax under both old and new regime side by side and recommends the cheaper one.
- Review and file. You see the final tax or refund, then file and e-verify.
A real example. Priya, a salaried marketer, dreaded filing because she had sold some mutual funds during the year. On the government portal she gave up trying to split short-term and long-term gains. On ClearTax she uploaded her Form 16, imported her mutual fund statement, and the platform separated the gains, applied the LTCG exemption, and produced her return in under twenty minutes. The part that scared her was the part the tool did for her.
Pricing: what you actually pay
ClearTax has a free tier and several paid plans. The important thing to understand is that the free tier covers only the simplest returns. The moment you have capital gains, business income, or want expert help, you move to a paid plan.
| Plan type | Roughly covers | Indicative price |
|---|---|---|
| Free / self-file (simple) | Salary, one Form 16, basic income | Free |
| Self-file (capital gains, multiple income) | Stocks, mutual funds, house property | Paid, from ~₹1,000+ |
| Expert-assisted | An expert files for you | Higher, varies by complexity |
Prices are indicative for AY 2026-27 and tend to rise as the 31 July deadline approaches. Always confirm the live price on ClearTax before you pay. For a full breakdown, see our ClearTax pricing guide.
Honest note: the sticker “free” gets a lot of attention, but most people who benefit from ClearTax end up on a paid plan. That is fine if the time saved is worth more than the fee to you. It is not fine if your return is genuinely simple, where you would be paying for something the free portal does.
How it handles capital gains
This is ClearTax’s strongest feature and the main reason to pick it over the free portal.
If you sold shares or mutual funds, you import the statement from your broker or registrar. ClearTax then:
- Separates short-term and long-term gains automatically.
- Applies the ₹1.25 lakh LTCG exemption on equity.
- Handles the grandfathering rule for older holdings.
- Slots everything into the correct ITR form (usually ITR-2).
Doing this by hand is where most people make mistakes or give up. Confirm the current-year exemption limits and rates on incometax.gov.in, since these are adjusted from time to time, but the platform does the classification work for you.
Old vs new regime comparison
The new tax regime is the default now, but it is not automatically cheaper. If you have significant deductions like 80C, home loan interest and HRA, the old regime can still win.
ClearTax computes your tax under both and shows the difference in rupees. For Priya in the example above, the old regime saved money because of her home loan interest and 80C investments. Without the side-by-side view she would have stayed on the default and paid more. This one screen can be worth the fee on its own.
Is ClearTax safe?
Yes, for practical purposes. ClearTax is an established platform used by millions of filers and uses encryption to protect your data. Your return is still filed with the Income Tax Department; the platform is the interface, not a replacement for the tax authority.
Sensible precautions still apply:
- Never share your Income Tax portal password over chat or email.
- Use a strong, unique password and enable any available two-factor login.
- Download and keep a copy of your filed return and acknowledgement.
For a deeper look, see our dedicated guides on whether ClearTax is safe and ClearTax is legit.
Pros and cons
Pros
- Reads Form 16 and prefilled data automatically.
- Best-in-class capital gains handling for stocks and mutual funds.
- Clear side-by-side old vs new regime comparison.
- Guided flow a first-time filer can follow.
- Expert-assisted option if you get stuck.
Cons
- The plan most people need is paid, and prices climb near the deadline.
- Upsell prompts during the flow.
- Overkill and unnecessary cost for a simple salary-only return.
Who should use ClearTax (and who should not)
Use ClearTax if you:
- Have capital gains from stocks or mutual funds.
- Are a freelancer or consultant with business income.
- Have multiple income sources and want them handled cleanly.
- Want your return checked and filed fast without learning tax rules.
Consider something else if you:
- Have one Form 16 and nothing else. File free on the government portal.
- Trade F&O heavily. Quicko is built for that.
- Want a person to do everything for you. TaxBuddy is assisted-first.
There is no shame in the free portal for a simple return. ClearTax earns its fee when your return gets complicated, not before.
If ClearTax fits your situation, file your ITR on ClearTax here. We may earn a referral reward at no extra cost to you.
FAQ
Is ClearTax worth it?
For returns with capital gains, freelance income, or multiple income sources, yes. It saves time and reduces errors, and the paid fee is usually less than the value of the evening it saves. For a plain salary return, the free government portal is enough.
Is ClearTax free?
There is a free tier for simple returns, but capital gains, business income and expert help require a paid plan. Most people who benefit from ClearTax end up on a paid plan.
Is ClearTax safe to use?
Yes. It is an established platform that uses encryption, and your return is filed with the Income Tax Department. Keep your portal password private and enable two-factor login.
Can ClearTax handle capital gains from stocks and mutual funds?
Yes, and it is one of its strongest features. You import your broker statement and it separates short-term and long-term gains and applies the exemptions automatically.
Does ClearTax compare the old and new tax regime?
Yes. It calculates your tax under both and recommends the cheaper one, which can save you money if you have significant deductions.
How much does ClearTax cost?
It ranges from free for simple returns to a paid plan from around ₹1,000 or more for capital gains and multiple income sources, up to higher expert-assisted pricing. Prices rise near the deadline, so check the current price before paying.
