Comment on Zerodha - your tax aide while you trade

Nithin Kamath commented on 14 Sep 2015, 07:41 AM

1. It depends. As a trader, if you show your investments also as trades, then LTCG is not exempt. As a trader it is best to show investments as a trade/business if the frequency is very high and it is your primary activity.
2. Yep
3. yep
4. yep, not just STCG, even LTCG the same thing.

The P&L statements that brokers will give will have calculations done based on FIFO of stocks lying in one account with them. IF you want to do calculation of FIFO combined, you can do this yourself while filing for the ITR combining both the P&L from the two brokers based on actual date of acquiring. I know a lot of people advise on keeping two separate accounts for investment/trades, but I don’t think it is really necessary. As long as you can demarcate which are investments and which are trades, even one account is enough.
But yeah, if you are trading on stocks that are also your long term investments, then best to do it in separate accounts.

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