IAN Invests in TaxSpanner for Significant Stake

Span Across IT Solutions Pvt Ltd, which runs an online tax filing service, TaxSpanner, has raised an undisclosed amount of funding from Indian Angel Network (IAN). The funding by IAN – for a “significant stake” – will be used by the three year old start-up to accelerate its growth and for product development. This is the first round of external funding by the Delhi-based startup.

While there are quite a few online tax filing sites, TaxSpanner’s USP is its privacy policy as it does not engage in cross-selling after obtaining client information.

Online Tax Filing in India – Stats

This year (2010), online tax filing in India witnessed an overall rise of 71%.

  • e-filing for individuals having income from Salary/ Pension (ITR-1) has gone up by 136% from the same period last year to 12,22,275 in Apr 1 -Aug 4 2010.
  • A minor category of ITR-8 for return of fringe benefits for persons who are not liable to file return of income but are liable to file return of fringe benefits has seen a 77% fall with only 26 e-filings.
  • Almost no change in interest from individuals and HUFs not having income from business or profession (ITR-2).
  • For individuals and HUFs having income from a proprietory business or profession the e-filing is up 76%.
  • ITR 3, 5 and 6 e-filing have gone up by 56%, 40% and 7% respectively.
  • Tax e-filing sees a 136% Jump For Salaried Individuals, Overall 71% Rise

The tax filing space has already seen some funding action in the past. BCCL has backed First Altus Resources and Networks (Taxshax.com) in an ad-for-equity deal. Accel and Mumbai Angels earlier funded Fin-e-ssential Infotech India Ltd.(Vegayan), which provides HR and payroll services besides tax filing.

TaxSpanner has tied up with more than 100 companies with clients like HCL Technologies, Accenture, among others (and clients like Citibank and Punjab National Bank, who use its services for their customers).

The funding will be used by the three year old start-up to accelerate its growth and for product development. Post investment, Sunil Kalra and Priyank Garg of IAN has joined the board of Taxspanner.

Recommended Read : Online Tax Filing in India – Insights and Observations on Consumer Behavior

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