Tradetax for income tax returns when trading

July 21, 2016

Traders,

One of the most popular requests we get every tax filing season from traders on our education modules on taxation is, “Why don’t we also help them with tax filing and audits”.

Introducing www.tradetax.in

Tradetax is a Rainmatter initiative formed by a team of experienced Chartered accountant’s (CA) with trading knowledge. We are the same team which has put up taxation module on Varsity and answered thousands of queries. We have also filed multiple petitions to the finance ministry, exchanges, and regulatory authorities on rules which cause inconvenience to the broader trading and investing community.

We will help you with filing your income tax returns, answering income tax notices, and any tax related work when trading the markets. This is a commercial venture, so there will be costs involved. Rs 6500 onward for traders with no audit and Rs 10,000 in case of audit. Fees will increase based on volume of transactions.

We will continue to answer all general queries on Varsity.

Why?

As an investor or trader  on the exchanges, job doesn’t end at receiving  contract notes. Taxation is a very critical aspect which most traders don’t give importance to. Even many CA’s don’t understand how to file income tax returns (ITR) for a trader, especially intraday and F&O. Mis-filing or non-filing can lead to unnecessary hassle of having to answer IT notices.  Answering many queries and requests on taxation, it was obvious that that there is a gap to fill.

  • Visit Tradetax if you need an experienced CA to file your income tax returns.
  • Visit Varsity if you want to learn everything about taxation when trading the markets.

July 31st is the last day to file ITR for non-audit cases and Sep 30th for those who need an audit.  Ensure to file your returns within the specified time.

Happy trading,

Nithin Kamath

Founder & CEO @ Zerodha, team working towards breaking all barriers that I personally faced as a retail trader for over a decade. Love playing poker, basketball, and guitar. Getting body fat % in single digit is the next personal endeavor :) .

305 comments

  1. Raja Rajan says:

    What are the chances of a any stock Brokers going bankrupt and how client stock and money is protected?

    Where can we get the access of financials of unlisted stock brokers?

    What is Investor protection meant for?

    • Check this answer.

      You can get access from the MCA website.

      Investor protection fund is meant to make good of any losses to client that might happen because of broker/exchanges going through financial trouble.

      • V K Sood says:

        Dear Nithin,
        Q.zerodha had provided the Turnover details for F&O for FY 2015-16 under reports-> Tax P&L. I had made certain observations on the methodolgy adopted and had suggested that the approach adopted by zerodha did not seem to be consistent with the Guidelines issued by ‘Institute of Chartered Accountants of India’ mentioned on their website.
        It is surprising that now the Tax P&L report has now been modified and the Turnover for ‘Options ‘ trades is shown as zero.
        One can understand the need to amend the reports but it should be done with information & reasons made available in the client domain and not in a surreptious manner. Such actions only erode the credibility of financial reports.
        Not just this, even the P&L accounts, for the same period , when viewed on different dates show different figures. I have brought this matter to your notice more than once and I feel it is high time it gets your personal attention immediately.
        I expect your response to it.
        V K sood

        • Hi Mr Sood, I am getting our team to have your turnover reports checked. Nothing has been amended, if it is showing zero it might be a technical issue. I have sent you an email separately, getting our team check it immediately, and also the bit about P&L you have mentioned.
          We have a dedicated team building a completely new reporting platform independent of any vendor products. Q relies on a vendor for trade process and etc, which is one of the reasons for some of these issues that keep cropping up. We are hoping to be live with it by Oct/November.

          • V K Sood says:

            Hi,
            Thank you very much for taking immediate notice. It is this zeal and promptness that keeps the flock together. I ,however, do not agree with you that the deletion of “Options Trade turnover” is a ‘technical Issue’ . See what has happened, whereas the Turnover figures for Futures trade remain unaltered , those for ‘Options’ have been deleted, both appaering on the same page. The technology that does it , I daresay, ios very selective. Let us not blame technology for the goof ups by humans. Let us not make ‘Technology’ an escape goat for our mistakes.

            Adoption of ‘Beta Versions’ in prepration of Finanacial statements is bound to give rise to such situations.
            I am sure, you appreciate that sanctity of ‘Finanacial Statement’ is sacrosant and cannot be sacrificed for any reason, least of all for expediency.

            I hope Zerodha will live up to it’s commitment to put in place a sound and robust Back Office sysyem in place by September, which is just 2 months ahead.
            Best,
            V K sood

          • Jay says:

            Hello Nitin,

            Need your advice on taxation.

            I do only delivery based trades and sell it when I make a 5 percent profit. Which form I should use for tax filing and I hope I need to pay 15 percent of the profit i make. Am I right.

            My second question is that I’m a freelance worker for last 1 year and I don’t have accountable income. I’m paid in crypto currency or cash. I make around 4 to 5 lakhs a year. How am I supposed to pay tax in such case.

            My third doubt is that: I’m getting quite interested in stocks market and would like to put more money in to it. For that I would like to borrow money from my friend abroad. Say 10 to 20 lakhs lakhs and he is willing to give me for no interest too and I just need to return it after Max 5 years. So it is not an income but a debt. So am I supposed to pay tax for this money. My friend will transfer money from his account to mine. But I’m confused as it’s big amount and it will be huge loss if I have to pay the 30 percent tax slab for this money. My friend is not an Indian national but known for each other for 5 years. So how can I tackle this situation Bro. Please advice. Should I collect the money on my savings account or shall I open a current account and receive it on current account? Hope u will answer soon and will sort out my confusion.

            • 1. ITR2 and yes 15%.
              2. Ah.. have no clue. Will try getting answer from my CA
              3. If you show this as a loan, there is no tax on it. Doesn’t matter if you take it in savings or current.

      • Sumit bedi says:

        Hi Nitin,

        Just wanted to confirm if brokerage nd other charges are adjusted in the profit shown in intraday and short term equities trading.
        Secondly, just wanted to highlight you that online tax P &L statement generated by your system is not always correct. I pulled up statement from April ’17 to July’17 where one of the major trade where i booked loss was not in the list. ..it was corrected after i marked a mail to your zerodhacare with NSE statement of that day. In last FY , there might be some other trades missed by you which even i can’t recollect…and these ommisions might lead to either payment of excess taxes or we may fall under scrutiny for hiding the income if some profit making trades are omitted . This is serious and you must analyse your internal systems as we as customers go by the statements .
        Regds, Sumit Bedi RS8315

  2. vikas says:

    Hi Nithin

    My big worry – now seems – no worry.
    thanks for such initiative – much appreciated.
    keep up good work.
    Rainmatter rocks with Kite, smallcase and now tradetax…superb.

    Long live Nithin and Zerodha.

  3. Chandra Bhusan singh says:

    HOW MUCH CHARGES FOR 1 YEAR ITR TAX FILEING

  4. Girish says:

    Thanks for creating this initiative and launching for the benefit of many.

    As I quickly browsed through the next few pages, I understand one gets to talk to some of the CA’s you have tied up with. My suggestion on this – it’ll be better if you can mention the fees for engaging a CA (if not a fixed fee, atleast a broad range), it’ll be even more helpful. Just being upfront about it – that’s what I mean.

    Cheers and Thanks again.

  5. K V SAILAJA says:

    Great initiative. This will certainly helps thousands of traders over there … As always appreciate Zerodha’s continuous innovation.

  6. Sunil S says:

    Hi i lost money no profit. Still i need to submit ITR?

    • Yes Sunil, it is best to file ITR. What happens if you don’t file is, when IT department sees that you have traded but not filed returns, there are chances of getting IT notice.

  7. ASHWANI agarwal says:

    I do not have form 16. I trade regularly in stock and mutual funds.

  8. M.Pereira says:

    I am a new member and retired. I do not have any income, just started the trade. Do I need to file ITR?

  9. Arpit jain says:

    My income is not taxable yet but I am trading in share market and invested some money so I need to fill a ITR?

  10. Deep Kumar says:

    Sir,today I received a msg from zerodha to fill ITR.till now I am student and have not earn anything bt I have opened a demat account in zerodha.

  11. Jitendra Kumar says:

    hello, i’m invested in stock and got losses of my money. can you tell me, need of filling tradetax.in form?.

  12. Advaita says:

    Nithin, charges of 6,500 and 10,000 are too high IMHO just for filing taxes. I mean it doesn’t take more than 3hrs to finalise the calculations and file it on IT website. If I were to do it, I would keep a cap of 1,000. Don’t know what makes it worth charging so high.

  13. karruna says:

    sir, i have started trading from 2015 and traded in both intraday and short term .my total equity turnover is 16 lakh(taken from zerodha p&l statements) and gross profit is -83k(loss).i have no other income.
    is auditing requried for me or not ?
    is it compulsury to fill ITR because i comes under below 2.5lk slab
    pls answer it sir.
    thanks in advance

  14. Pradeep Dahiya says:

    Dear Nitin
    Do we require digital signature for filing the ITR 4 especially when we fall under audit required category.
    Thanks

  15. Raji says:

    Hi Nitin, Is this consultation safe? What is the assurance that whatever data I share with this team is confidential and completely protected? Do you have any assurance from Zerodha on behalf?

  16. arun gandhi says:

    Dear Nithin,

    Please guide me in below case.
    I have made only one F&O trade(Bought yesterday & sold today) for last year.
    Now I made a loss in the above transaction.
    Now my question is, When i make a profit i can subtract the STT & Brokerage and pay tax for remaining amount.
    Now I made a loss of rs.9000 and STT & Brokerage on buy side and sell side is equal to rs.200.
    Can i show a loss of rs.9200 or rs.9000 only.

    Thanks.

  17. Joe D'Costa says:

    I have traded in Options and Margin during the last financial year. The trade is a loss and was planning not to show in ITR. If the trade was a profit i was planning to show as Other income.

    Is it ok?, if not ,which ITR i must fill. Currently i have filled ITR2 but not yet uploaded the same.

    Thanks

    • Joe, since you have traded F&O, you need to use ITR4 to declare this income. It is best to do it because not declaring could mean getting an IT notice asking why you didn’t. Unnecessary hassle of then having to answer the notice.

  18. Satish Naidu says:

    Good work Nitin…..

    Its a pleasure to be a part of Zerodha…..

    I am very well educated about trading and investing, thru varsity, and now taxation…….

    Superb job..

    Keep up the Good work.

  19. Nizam says:

    Charges of CA is Very High. It should be within Rs.1000 to hire a CA to make ITR statement for Trading Account.

  20. B Gupta says:

    Dear Nithin,
    I have traded only in equity intraday trading the previous financial year and incurred loss on the same. I am a student and have no other source of income apart from the stipend I received during an internship (on which TDS was deducted).
    Which ITR should I file in this case?

    Thanks

  21. Vikram kini says:

    Dear Nithin, charges are too high, usually just for the ITR ca’s ll charge 1000-2500, as a discount brokerage you should have made a new way wer we can file with nominal price just because we are with zerodha, it’s too high for the people like us.

  22. Ank says:

    Excellent initiative!!
    I have professional + trading + interest income which needs to be audited. It would be nice to have a local CA (Mumbai) who is tied up and approved by tradetax.in

    I would need like a go-to person who I can sit face to face and clear doubts or discuss notices/queries so I am more engaged in the process of knowing what is being filed on my behalf.

    I hope this can be implemented.

  23. Amol says:

    Hi Nitin,

    Does Zeroda provide income statement for transaction performed in financial year, so that we can use it for tax declaration

  24. Mahesh Thakur says:

    Hi Nitin,
    1) my salary income is Rs-300000 & my 80 (C) deduction amt is Rs-58000 mt STCG is Rs-9200/- in AY-16-17 i have not liable to pay tax so is there any need to file ITR-2 ?
    2) I have book profit in AY-16-17 & AY-17-18 if i filed ITR-2 for these year & if suppose in future i will not trade in share market, so can i filed my ITR-1 regularly in future.

  25. ajay says:

    I had total turnover of 17,98,000 during 2015-16 in all segments with a gross profit of -3,79,000(loss).will i require a audit as turnover is less than 1crore?

  26. Raja Rajan says:

    Does Zerodha has its own Proprietary trading desk?

  27. Shreyans says:

    Zerodha it seems does not provide profit and loss statement for tax filing as there are no options for it in backoffice

  28. kamlesh says:

    hi nitin,
    thanks but relook at the costs.. its too high..
    i got confused as in one above post u replied to someone that with a loss audit is not required,, how come??
    if so please help me that my turnover is 90 lacs. and loss is 5 lacs.. do i need an audit..

  29. Meenakshi says:

    Hi Nitin,
    I am a house wife and traded F&O intraday for 2-3 months between September to December. I lost around Rs. 20 thousand. Do i need to do something for tax returns filling? I don’t have any other income as well.
    Regards,
    Meenakshi

  30. PANKAJ JIAN says:

    HOW TO ROLLOVER F&O possession IN PI PLEASE ME QUICKLY
    THANK U

  31. Francis says:

    Hi Nithin,

    Nice initiative for big traders. Why not a fully online tax filing tie up for small delivery based investors?

  32. Rajiv Varma says:

    HI Nitin,

    I am a CA actively trading for last 3-4 years especially in F&O segment. I am conversant in Filing returns for Traders and currently based out of Kolkata.

    It would be great if I could get an opportunity to associate myself with this service.Do let me know if it is possible.

  33. S Mukerjee says:

    Hi Nitin,
    I have traded in delivery and margin. I am in loss.I have negligible source of income and have not filed tax returns. Suppose I run into profit in the course of the year what changes do I have to make?

  34. ganesh says:

    Hi Nitin,
    Nice to see the quickest Responses from you to all the questions asked.

    Sir,
    I’m an employee of a pvt ltd company and i received my form 16 from my employer.
    I have traded in NSE future and CASH segments.
    i have incurred a loss if 1.65 lakh in intraday trading.
    I have made the balance sheet (myself) of intraday transactions by taking data from my stock broker (PROFIT LOSS statement.)
    As i need to file tax which FORM i should use and for my NSE intraday transactions is CA’s audit is must ?
    All my NSE Intraday transaction will come under speculative transaction or business transaction??
    Please help me.
    Thanks,
    Ganesh

  35. PANKAJ JIAN says:

    F&O MY TRADING KERNE PAR PROFIT HONE PER YA CASH MARKET MAY BHI PROFIT RHNEY PAR KYA 60 DAY CH WIN HONE PAR F&O KA BROKERAGE BHI REFUND HOGA PLEASE INFORM ME THANK U KAMATH JI

  36. Manjeet says:

    Hi Nithin,

    If we consider the total turnover of a F&O day-trader (who not only utilized regular margin but also additional MIS margin too), it gets inflated way more than the actual funds carried in a trading account. Or the turnover is calculated as per total of ledger of given period generated by q dot? plz clerify

  37. Gurumoorthi says:

    Hello Nithin,

    May be a complicated query – I was salaried individual and also I made a huge loss in F&O trades in the FY 2013-14. But when i filed IT Return for FY 13-14, i had just filed ITR 1 showing just my salary income and didn’t show my overall loss from F&O trades. Now is it possible to file a revised return in ITR 4 showing both salary income and trading loss?
    I primarily want to do this to adjust future profit in trading with past trading loss.. Kindly advice. Thanks

  38. chella says:

    For an individual with salary and who well trades also ( in futures ) what is the last date for filing IT returns if accounts are required to be audited?
    In the above case whether one can ignore the loss and pay tax on profit only to avoid auditing?
    Otherwise, whether the individual could file the return meant for salaried class showing the profit under other income before 31-07-2016 and later file a revised ITR-4 before 30-09-2016 due to time constraint.

  39. sai says:

    Hi
    before trading with zerodha, i also traded with two brokers.
    i have some losses in all these accounts .
    i want carry forward these loses ,i traded in EQ,F&O,COMM,CDS.
    which form i needed to submit itr 4 or 4s.
    alreday i placed a request for call back in your website tradetax
    but i dint get any response .
    contact me RM2420

  40. tarun says:

    I am Salaried. With trades done in both F & O and intra, and Short term cap gains. my total Turnover is less than 1 cr.
    my profit for F & O, Intra and short term equity is positive and more than 8 % of turnover but after considering STT, Brok, etc, , its getting less than 8 % of turnover.
    do I have to consider it post brok, stt, etc and thus will have to go for Audit ?

    thanks

  41. AYYAJ PATEL says:

    Hi, I went through this thread and what I understood is that in FNO, if we incur loss and if we have taxable income from other sources (like salary/business), we have to file ITR4 and audit becomes compulsory where cost of audit is again an additional cost and it is too high as well.
    I have small query. If I have Gross salary income Rs. 10 lac and FNO Turnover of Rs. 3 Lac and Loss in FNO of suppose Rs. 1 Lac.
    Now if we consider my only FNO Turnover and the loss incurred, I have to go for an audit. But is there any way that I can show my salary income (Rs. 10 Lac) + my FNO Turnover (Rs. 3 Lac) as my total turnover (Rs. 13 Lac) and show profit total of my salary income (Rs. 10 Lac) + FNO Loss (Rs. 1 Lack). In this case my total turn over will be Rs. 13 Lac and my total profit will be Rs 9 Lac. This way, I do not have to go for an audit.
    Is it possible?
    In simple words, I am trying to put my salary income in turnover as well as in profit to increase my profitability to push it more than 8% to avoid the audit. Is it allowed?

  42. Jay Divanji says:

    This is a fantastic & much needed initiative. Wish it had been launched a little earlier. I would have gone for Tradetax instead of another consultant. Will use Tradetax from next year. It’s just the thing specialist traders need.

    Is it possible for you guys to give a P&L and balance sheet template to make it easier for us traders to keep track? A lot of us don’t know how to maintain these two things.

    Will Tradetax also help with the “problem” of calculating advance taxes? It’d be great if this service is also offered.

  43. chella says:

    For the purpose of calculation of turnover in the case of Futures, (the difference between selling price and buying price) whether it has to be calculated for each transaction separately and added together or whether it could be for each contract. For example if there are 10 trades in Nifty April 2015 contract, whether the difference between total buy price and total sell price of all 10 contracts is to be considered or whether the difference has to be individually calculated for all the 10 trades.

  44. ajit says:

    For all trader PAN is a must . So as TDS @source IT dept has to find out way for tax PNL , carryforward loss etc. so as to increase the confidence of trader and hassel free . tHAT WILL ENCOURAGE TRADING

  45. sreekhanth says:

    I will sent a documents 15days back. but I was facing log in problem they said your client Id invalid so we are blocked then sent a new client Id but I’m not receiving them . They are not responding responsibly.

  46. Prabhakar says:

    When Mr.Nithin wrote that TradeTax would help traders in audit and return filing, I felt my problem of getting accounts audited was solved. But today, I have received mail from them saying that they don’t have associates in my place, Visakhapatnam and advised me to go to local consultant.
    While there are many CAs in our city, I don’t know who among them is familiar with handling trading accounts and willing to service small individual accounts.
    If anybody reading this knows such CA in Visakhapatnam, please provide the CA’s contact information. That will be of great help.
    Thanks.

  47. Arunlal says:

    Hi Nithin,
    Now I learned about the Tax Filing, I heard that the last date is Aug 5 (its extended).

    This is my “FO tax P&L breakdown – FY-15/16”
    (Only F&O, NO Intraday or investing )

    Futures realized profit = 0
    Futures unrealized profit = 0
    Total Futures profit = 0
    Options realized profit = ₹574.90
    Options unrealized profit = ₹-2,783.65
    Total Options profit = ₹-2,208.75
    Total Gross profit = ₹-2,208.75

    Total futures turnover = 0
    Total options turnover = ₹75,338.65
    Total turnover = ₹75,338.65

    1. Do i need to file any thing for this, Do I need a CA?
    2. Will govt take huge amount as tax? I am a small trader.
    I don’t have any job or business, Only share trading.
    Can I easily solve income tax problems using incometaxindiaefiling.gov.in website?
    Can you please help me by analyzing the above FO tax P&L list.
    Thanks

    • Venu says:

      1. It’s always best to file your returns. Filing returns doesn’t necessarily mean having to pay taxes.
      2. Since there’s a loss and your income is below the Basic exemption limit, there’s no need for audit. Yes, you can file your returns on the incometaxindiaefiling.gov.in site.

    • 1. It is best to file ITR, you can use ITR4. You can do this yourself, since your turnover is so small, you don’t need audit and all.
      2. No, tax is payable only on your profits. In your case there isn’t, so nothing to worry.
      Yes you can file it yourself on the IT department website. Check this module on taxation on Varsity.

      • Arunlal says:

        First of all thank you very much for your kind reply Mr Venu & Mr Nithin.
        I have one more doubt friends, I read in zerodha varsity (in tax module) that if we have turnover less than one crore and if the loss is less than 8% of the turn over, we have to audit the loss right?

  48. Gangayya says:

    Sir,

    We filled contact form on tradetax.in. As date extended for filing tax return, i like take the service from tradetax. Is this service will help us with auditing? I have around 1.35 lakh loss in trading and like take loss to next year. Till now nothing from tradetax.in

    Thanks
    Gangayya

  49. Samir Sinha says:

    Hello Nithin,

    Just download the P&L A/C for me and very surprised that you are providing little information about your company on it, just logo of Zerotha as well as of client details.

    Format is excel, how to take print of whole page is a tedious task. You have to make it downloadable as in PDF format with Company details as well as client details as similar to other company providing.

    Please generate and send P&L A/C details in pdf format which should be printable on A4 size paper.

    Hope, you will honour my concern and will implement it in future.

    Thanks,
    Samir Sinha
    Client Id : RS6915

  50. Subramanyam says:

    My total sale value in futures is around 18 Crore for financial year 2015-16
    My loss is 6 Lakhs for financial year 2015-16

    Based on your notes Markets and Taxation can I interpret that my turnover is 6 Lakhs for futures and not subject to audit.

    However because my profit is less than 8% should I submit audited report.

    Please clarify.

    • Turnover is gross sum of tradewise profit/loss. Not total loss for the year. If profit is less than 8% yeah u will need an audit if you have tax to be paid from otherincome.

  51. sujit says:

    1- my wife is a house wife she trades on f&o equity intraday in ZErodha.she has no other income.she got money from me and from her father and brother as his pocket money.she made loss in trading she did not want to carry forward the loss in this case is it compulsurry for her to file itr return,
    2-sir my primary income from salary i want to trade in zerodha intraday equity & f&o .i want to pay 30% tax if i get any profit from trading in this case is it compullsurry to show this is busines income.if yes which itr to file.If not can i show it as other income and which itr to file.please help.

  52. Rahul Gupta says:

    Sir, i opened my account in june.And my total turnover is around Rs. 50000 nd my loss is around 7000 rupees so is it necessary to file the ITR ?

    And how could i file the ITR. what’s the procedure ?

  53. Premchand says:

    I have done equity transaction of amount 25838.4 INR (buying and selling) in previous month.
    As per government rule STT tax should be 0.1% on total turnover, and that comes to 25.8384 INR, but my STT has been deducted of amount 159 INR,
    could you please let me know how it get calculated on the kites trading plateform.

  54. sujit says:

    sir please provide sample of itr4 for traders how to fill it.

  55. Bipul says:

    Sir,
    If i have been trading with a broker other than Zerodha,is it possible to get the return filed by tradetax and what documents will be required for filing of my return.

  56. vijay says:

    Is it now not necessary to declare oneself “trader” or “investor” as per new rules?

  57. vijay says:

    Is it necessary to declare investment done in Mutual fund 4 years back if there is no transaction in last financial year?

  58. PANKAJ JAIN says:

    WAY NOT SHOW ACTUAL PROFIT IN 60 DAY CH
    I EXPLAIN I CHQ P&L ACCOUNT F&O DATED 27-6-16 TO 7-8-16 ACU PROFIT IS :-5759.74+ EQ P&L :-46667.28 /- TOTAL PROFIT IS 10427.02

    BUT 60 DAY CH SHOW ONLY 8104.77 WAY PLEASE HELP ME FOR BEATER UNDERSTANDING MY CLINT ID IS DP3640

    2. & PLEASE ANSWER ME 60 DAY CHALANGE WIN ME F&O KA BROKERAGE REFUND HOGA PLEASE ANSWER ME THANK U

  59. Murugan says:

    I am a F&O Trader. I have to file ITR4 after Tax Audit. What will be the cost invoilved. My Phone No is 9087019689

  60. Murugan says:

    Has Tradetax stopped taking new request, as this is the message displaced when trying to open the website.

  61. Dinesh says:

    Is there any plan for Zerodha to become public by launching an IPO. If not then can a public person invest in Zerodha?

  62. bipul says:

    Sir, my wife is a housewife and she takes private tuitions and has earnings from bank interest.She has been filing ITR1 for the last three years.Is it right? If not what should I do
    Thx

    • Hello

      If the amount of income from tuition fees is nominal during the year, the same can be declared under Income from Other sources under ITR-1 – as rightly done by you over the years.

      However, if the income is repetitive over the years, it will be considered as professional income. In such case, ITR-4 will have to be filed.


      ClearTax – The easiest way for e-filing Income Tax Returns in India : File your returns – https://cleartax.in/business/partner-zerodha

  63. Deepankar says:

    @nithin sir,
    for this financial year 2016-17 till date
    my total turnover (equity and future combined) is around 20 lac
    and my gross profit is -2.5 lac…
    brokerage and other charges total are around 85000 rs

    i have two questions
    1. can 85000 also be included in loss and carried forward?
    2. could 85000 be adjusted with my income from other sources (i have income of around 6 lac per year) as my slab will be changed…
    3. if i have this much loss till date what should i do for advance tax which is to be paid by 15th sept? should i show my loss there or wait till the end of financial year?
    4. for advance tax also should i fill ITR4?
    5. audit will be required next year only?

    sorry for many questions… but plz do reply…

  64. chandru mehta says:

    Nitin ,

    My CA says this intraday transactions need to be formatted by an accountant . Can you please guide me the headings that i need to place for forwarding to my CA.

    a) Gross Total Intraday speculative Profit for 2015-16
    b) Gross Total Intraday speculative Loss for 2015-16
    c) Total brokerage charged by Zerdodha for 2015-16
    d) Total Taxes paid for 2015-16
    e)Net Total payment to Zerdodha
    f) Net Total payment recd from Zerdodha
    g) Net Total Profit/Loss for 2015/16

    My question is are there any other headings that i need to include . Do i need to add Turnover details also & which ?

    chandru

  65. Avinash Shitole says:

    Dear Sir,

    I am new to this field and have applied for demat account, i am interesting in day trading.
    i want to know do people make money in day trading?
    How to gain knowledge and perfection in day trading?

    Regards

  66. sanjay says:

    sir,
    my fd income and LIC AGENT commision is less then 1 lakh,
    but i trade (intrad-day ) in equity , commodites . f&o. etc,
    turnover in a fincial year above 1 caror.

    I did not file trading transation due to not profit ..
    i show only fd and commison income.

    i gate notice from income tax department..
    please help

  67. chandru mehta says:

    Is there a way where i download / get all contract notes – equity for the 2015-16 in pdf . Also if available in excel format. Is that available in Q ? or does one have to place a request to support @ zerodha ?

    chandru

  68. chandru mehta says:

    Is there a way where i download / get all contract notes – equity for the 2015-16 in pdf . Also if available in excel format. Is that available in Q ? or does one have to place a request to support @ zerodha ?

    The equity contract notes that we get on email daily all in one place?for download

  69. chandru mehta says:

    Dear Nitin ,

    Can you suggest / anybody reading this post suggest a CA who can file my returns in Mumbai . My current CA has not handled these kind of share trading in his portfolio and has put his hands up.

    Can anyone Please suggest a CA who is well versed and has handled clients in similar activities.

  70. chandru mehta says:

    Can you suggest / anybody reading this post suggest a CA who can file my returns in Mumbai . My current CA has not handled these kind of share trading in his portfolio and has put his hands up.

    Can anyone Please suggest a CA who is well versed and has handled clients in similar activities.

  71. R.Sehgal says:

    I am presently trading with another online brokerage.In case I change to Zerodha in the middle of the FY will it have any problems in preparing the accounts and filing the ITR.Also I wanted to have a demo of your trading format is it available anywhere?

  72. Akshay says:

    If I trade in f&o and my total income is less than rs 250,000, do I still have to file income tax returns?

  73. Rohan says:

    Hi Nithin, I wanted to clarify this because I am getting conflicting information from various sources. My question is if I have an F&O loss and my total income is below 2.5 lakh, do I still need to get an audit and file returns? Some clarity on this would be greatly appreciated.

    Thanks,
    Rohan

  74. Ishaan says:

    Hi, I transferred some shares from another broker to zerodha. I have been holding these shares for more than a year. Now I want to sell them through zerodha, however, I have misplaced the contract notes for my long term shares. Is there any way to prove that those shares are long term holdings?

  75. bharath says:

    Hello,
    My made profit of rs 550000 in mcx segment,
    and i have invested that amount in equity shares, soo i want to know do i wanna file returns on that amount, or what, ??

  76. Sujit kumar jena says:

    Please show itr4 how to fill up incase salary and f&o trading.(with an example)

  77. Sandeep says:

    Dear Sir,
    First of all thanks to giving a lot of opportunity for new and small trader like me.I am new at Zerodha and enjoying trading here.My concern is I am a day trader & use BO/CO for more margins usually I do 7-10 trades every day for small profit,but value of total trade goes to 1cr is there any trouble for having this much of value? is there any limitation by Zerodha for using intraday margin? I will be gratitude of yours if you guide me for the same.

  78. kashinath says:

    My CA has considered the dividend of Rs 1 lakh received as taxable in ITR4 of FY 2015-16 and this ITR4 has already been processed.. He says as per IT rules the scrip should not be sold 3months prior /after record date of dividend. I have argued that when the company has paid dividend distribution tax, the dividend should not be taxable in the hands of the invester/trader. But he has not agreed and filed returns considering dividend as taxable. Please clarify in the regard.

  79. kashinath says:

    Whether dividend income is exempt even if the concerned scrip is sold on ex-dividend date?And in such case any loss out of this sale shall not have to be considered in P&L ? He has shown some rule from IT book which I could not understand. Please clarify in detail so that I will inform my CA to file for rectifictation.

    • It is called dividend stripping, when you sell a share on the day it goes ex-dividend. Essentially you book a loss on your trade, but this makes up in the dividend tax free gain. I don’t see there is any issue with this. I guess you will have to ask your CA for clarification on this.

  80. abc says:

    Hi Nithin Merry Christmas, now become my santa & solve my query. I have filed belated ITR for Ay 2015-16 in oct 2016 & now I have got Intimation u/s 143(1) , Got a huge demand notice u/s 156.To be paid in 30 days. They have calculated my income even more than total turnover.Demand is uploaded by CPC. I had taken loan from family & traded in equity,f&o,Commodity & made loss, no any other income, net loss in year & I filed ITR4 . But still I have got demand notice now what to do. I have collected some information from net but not clear what to do.I have to file appeal to CIT(Appeals), stay petition with CIT(Appeals) or rectification u/s 154 along with appeal( What to rectify on my end as I have already filed correct ITR ). As I am still trading with loan amount & paying interest so Interest paid(monthly online) to family on loan should be considered as business exp or not ,IT department has rejected almost all expenses(interest,electricity,desktop purchase,depreciation,internet) in AY2016-17 Also ? & as of now I have not done anything about that also. Now firstly tell me about Ay2015-16 demand issue. let me solve it first.

    • Jahangir says:

      Your sense of entitlement amazes me bro.

      • abc says:

        🙂 Don’t be surprised coz Not everybody feels good to be in lime light especially on social media. I am bit social media shy person & What’s in a name? That which we call a rose by any other name would smell as sweet.
        William Shakespeare

  81. Manoj says:

    Dear sir, I am a salaried person and doing intraday trading. I filed ITR-1 on 20 Aug 2015 for FY 2014-15. In which I shown salary income only and taken tax refund. Later I came to know that refund which I have taken is not valid. I have made huge loss in day trading. In the month of Jul 16 I received ITD notice under section 143(2) for issues related to “Securities Transaction”. Breakdown of my salary is as follows: (1) Total Income- 515229/- (As per Form-16) Shown in ITR- 417885/- (2) 80C- 150000 & 80G- 545 (3) Tax Paid- 9819 (at source) Refund taken – 9819/- I have not replied to the ITD notice. Please help me. What shall i do now?

  82. da3603 says:

    HI FRIENDS ,,

    IF A PERSON TURNOVER IS OVER 5 CRORES AND HE NOT FILLING THE RETURN AND ALSO BANK TRANSACTION IS 5LAC WHAT HAPPEN..>

  83. da3603 says:

    HI FRIENDS,,,

    IF A PERSON LOSS IN COMMODITIES IN 2010-2011 YEAR IS = -30000,2011-2012 PROFIT =7400,2012-2013-LOSS OF 2LAK——

    A PERSON IS GOING TO JOIN SOME SCHEME……………….IN WHICH HE IS IS TO BE UNEMPLOYED…..

    SO TELL ME A PERSON IS SELF-EMPLOYED ….FOR TRADING HE TOOK MONEY FROM HIS PARENTS…

  84. abc says:

    Hi Nithin Goodmorning, I am also waiting for reply.

    • abc says:

      Hi Nithin I am zerodha client active since initial days & waiting for reply. abc says:
      December 25, 2016 at 2:53 pm
      Hi Nithin Merry Christmas, now become my santa & solve my query. I have filed belated ITR for Ay 2015-16 in oct 2016 & now I have got Intimation u/s 143(1) , Got a huge demand notice u/s 156.To be paid in 30 days. They have calculated my income even more than total turnover.Demand is uploaded by CPC. I had taken loan from family & traded in equity,f&o,Commodity & made loss, no any other income, net loss in year & I filed ITR4 . But still I have got demand notice now what to do. I have collected some information from net but not clear what to do.I have to file appeal to CIT(Appeals), stay petition with CIT(Appeals) or rectification u/s 154 along with appeal( What to rectify on my end as I have already filed correct ITR ). As I am still trading with loan amount & paying interest so Interest paid(monthly online) to family on loan should be considered as business exp or not ,IT department has rejected almost all expenses(interest,electricity,desktop purchase,depreciation,internet) in AY2016-17 Also ? & as of now I have not done anything about that also. Now firstly tell me about Ay2015-16 demand issue. let me solve it first.

      • Venu says:

        Although you’ve filed ITR IV, you’ll have to verify if the ITR is filed correctly, whether turnover is computed correctly.. It’s better you get the return verified from a CA/consultant who should be able to spot any mistakes. Appeals happen only when there’s a scrutiny. You’ll have to file rectification under section 154 with CPC. Interest on loan amount, internet charges etc are indeed allowed as expenses.

        • abc says:

          Hi venu, actually it was prepared & filed by CA only, along with audited ITR For AY 2016-17 but he was not unreachable since last few days nways now he has filed rectification, lets see the outcome. CA’S in my area don’t have much knowledge about stock mkt return filing & stuff , basic concepts are not clear & every other CA has different point of view for stock mkt related queries so faced problems while filing return also, it’s always difficult to find the right one on time.

  85. rohan says:

    I have short term gains of rs 160,000 and have no other income. Do I still have to pay 15% tax on my short term gains?

  86. C M Vyas says:

    Dear Zerodha,
    I am presently in the Beta mode of exposure to Zerodha. Still getting to understand the intricacies. I have some observations that could be addressed by you.

    I am facing difficulty with is in respect of the trade book and contract note. In case of trades in multiple scrips in a day, I get one contract note, which is fine. I also know the value of each trade/ scrip traded, which is also fine. But brokerage, STT, cess and other charges are not reflected scrip wise. It it given as one figure for the whole trading day instead of scrip wise. Secondly, if I do some CNC and some MIS in the same day, the brokerage for these two segments are different and the charges are also different. Unless I know the breakdown of charges order wise I am left to resort to time consuming calculations. I suggest a trade wise breakdown be incorporated in the Trade book & Contract Note.
    The watch list has five pages with 20 scrips per page. I have some suggestions here. First, can it be increased to 10 pages of 20 items? Probably auto refreshing only when the specific page is open instead of continuously refreshing at all times? Second, the font is very light and needs to be darkened. It is especially so when we access it outside our homes at times and in the sunlight it is barely visible. Third, can watchlists also have a download feature (all watchlists together) at the end of day only? It can be in OHLC format.

    • We are about to launch our new in house backoffice tool, which will start showing brokerage/STT etc trade wise as well.
      Let me speak to our team about the fonts and downloading watchlists. For now watchlist gets saved on the cloud once you have set it automatically.

  87. FRANCIS XAVIER says:

    Hi Nithin,

    Good initiative. But why not supporting retail investors and only for traders? Pls extend yr tie up with cleartax for retail investor also.

  88. kashinath says:

    This is w.r.t. your reply dated 13.12.2016/10.33pm in regard to dividend stripping.
    SECTION 94 (7) of IT: As per this section the securities bought 3 months prior to record date and sold 3 months after record date are tax free. Or otherwise the dividend is not tax free. In that case the difference of loss and dividend has to be booked . DIVIDEND IS SIMPLY NOT TAX FREE. Am I right ?

  89. prasanna says:

    Hello dear Nithin,

    Highly appreciate this initiative of addressing customer/traders queries very useful, thanks and more importantly hats off to your energy, enthusiasm and passion to reply yourself directly to hundreds of queries/clarifications, though you have hundreds working for you @ Zerodha, admirable really.

    in one of these ocean of your replies you have mentioned, declare 8% profit on the turnover and avoid audit.

    request please expand further on this, how does one show profit of 8%, how do we effectively do this?

    Thanks in anticipation!!

    • Thanks Prasanna, Can you check this module: http://zerodha.com/varsity/module/markets-and-taxation/, have explained everything in detail. As long as you are not evading taxes, govt is okay. So if your turnover is not much, you can just show the profit value when filing ITR as more than 8% to cover the requirement of audit. If your profit is more than 8% of turnover, best not to use this as you would be saving on taxes taking this route. This makes sense only if you are trying to avoid audit.

      • prasanna says:

        Nithin,

        Thanks!

        in my case, matter of fact profit is <8% ( it is actually loss).

        First of all it has not been profitable and on top of that (like adding salt to injury) I don't have the inclination to shell out additional 10-15k for getting the audit done, neither I am keen to leverage the tax benefit of carrying forward the loss to next years.

        in this scenario how do i show 8% profit to get away with audit?

        Thanks in anticipation!!

        • Hmm.. No clean way to get away from this. Best to speak to a CA. If your turnover is not much, you can get away by declaring 8% of turnover as profit (even if in loss) and pay taxes on it. So if 10lk turnover, declare 80k profit and pay taxes based on the slab you are in. May not make sense if you are in the 30% tax slab.

          • prasanna says:

            Sir, you continue to surprise with your speed and alacrity, thx!

            so the essence of the message is, tax dept gets concerned & gets alert only if they are to understand there is a expected loss of revenue (in this case revenue refer to the tax collectible) for them in the coming years hence they will go over drive and demand audit so as to ensure the books are correct as being claimed by the assessee. where profits are being declared and tax being paid they are ok and no audit required.

            Thanks!!

  90. KOUSHIK BERA says:

    I am a government employee. Can I do intraday trading?I have intraday capital gain 137₹ &total turnover is 337₹ .Can I avoid it in income tax return.

    • Best to find out from your department if intraday is allowed. Hmm.. technically you shouldn’t avoid, do speak to a CA.

      • Amar says:

        I have noticed, whenever I add into any existing script in my portfolio by purchasing additional quantity,T+1 day onwards to T+few days, it always shows wrong avgerage purchase price for that script. Not only that, my total invested amount also shows wrong data and so as my profit(as invested amount is wrong).
        Kindly take a notice of this and do the needful to correct it at earliest.
        Please note here, in long run when u can’t track manually how much you have invested and just by seeing the info shown if you sell off thinking you are making huge profit, however you will be making huge loss in actual.
        I have raised a support ticket for this, however was not satisfied with the primary response I got and reverted with my concerns.
        I may not be posting this in correct thread, sorry for this, however posting here so that if someone else as well facing similar issue then they can update.

  91. palani says:

    Dear Madam / Sir,

    My “NET REALISED PROFIT” as on today is +3 Lakh
    And “UNREALISED PROFIT” as on today is + 3.5 Lakh (holding shares since 2 months with profit)

    My questions is If i sell these shares in April 2017. Will these profit considerd as taxable income for this FY 2016 / 2017 because i invested in 2016.

    If it is considered for next financial year means I am planning to hold for 2 more months.
    Because then I will end up paying less tax for this financial year.

    Please clarify Sir. Thanks a lot!

    • If these are equity investments, then you pay capital gains. You need to hold for 1 year to get benefit of long term gain. If it is less than that, it is short term, a flat 15% tax. So wouldn’t really matter when you book the profit.

      • palani says:

        hi Nithin,

        Is this profit from short term equity investment not added together with salary and profits from intraday equity and F&O?

        do you mean, one can have different taxable income with different tax slab?

        Like you said, for short term it is flat 15 %. For other taxable income it is different tax slab?

        Is it not a single business income with single tax slab?

        Thanks

  92. yamuna says:

    hi sir,

    i read all chapters related to tax. this question is not answerd if possible or not.

    In FY 2016 / 2017, so far i have 20 lakh profit from equity intraday , equity delivery (short term), and futures and options. (total gross profit from all of them).

    i have no salary and no other business. this is only my income.

    my question is, will i be able to file this 20 lakh profit under capital gains? i do not want to show it as business income.

    So F&O profit can be shown under capital gains?

    Thanks
    yamuna

  93. Rajesh says:

    Sir, I have a different question.
    There is a huge mismatch of funds in my account, i called the customer care in the morning but after my business in the day they deduct an extra amount and showing my account balance minus even though i explain them. What have i to do? should have i to choose an other broker? they are always careless about others fund espically for a newbie.

  94. Nilesh says:

    April 2, 2017 at 11:16 pm
    My salary income is 5lks…commodity trading turnover is 97000/-. And P/L = -18000/- (in loss) . So i come under section 44AD. Should i get book audited? Is it compulsory to get audited? Which ITR should i use while filing? Can i use ITR4s for stay away from audit?

    • Since you have only F&O trading, you can use ITR4S. If you use ITR4S, you will have to declare profit of 6% (reduced from 8%) on turnover. So around Rs 6000 profit, instead of Rs18000 loss. pay tax on this Rs 6000, which will be at 20% only Rs 1200. But if you want to carry forward the loss, yes ITR4 and audit would be needed.

  95. Siva says:

    Hello Sir,

    If the shares are traded in BTST and intraday under which head of income it will be taxed? Whether it will be treated as STCG or business income? Please advise. Thanks.

    Best Regards,
    Siva

  96. jay says:

    Hi, I am facing problems while using Q backoffice. Many of the utilities like Ledger and Tradebook, do not work. When I tried accessing data from 1 April 2016 to 31 March 2017, it either does not show anything or shows a message that it takes 15 minutes to compute the results and a mail will be sent informing me when its done. I have tried this several times in the last few days but there is not even one mail informing that the data is ready. At first I thought this was because of some internal maintenace related to financial year paperwork, but the result is the same even when I ask the data for 1 April 2016 to 10 April 2016.
    Please rectify this dysfunctional Q backoffice so that I can check my financial data for last financial year and also my recent trades
    thanks

    • Jay, can you check now, it seems to be working fine. Tradebook and P&l for last year might take a bit of time. If it still isnt’ working, can you email [email protected]

      • jay says:

        Thanks. I’ll mail as you suggested. P&L, tradebook etc. is now working – but only for dates after March 31, 2017. If I try say, March 31, 2017 to April 10, 2017, it says “Tradebook can take upto 5 mins to load. Do check this page after sometime “. I’ve tried after 5 mins and it isn’t working. Its a bit nervewracking not to be able to see one’s trading history for the last month – and its just a handful of them.

      • jay says:

        Tax P&L, P&L for FY2016-2017 is now accessible. However, tradebook for the same period shows/downloads nothing. I don’t have that many trades, so I’m surprised at this not being available when Tax, P&L etc. are.
        Also, there seems to be a glitch after login into Kite wherein most of the fields like Positions, Funds etc. showed zero values. I wasn’t able to check the trade that I made day before yesterday, and so on. Luckily I had written down the same, so it wasn’t an issue. It took maybe 10-15 minutes for those fields to be populated in kite. Is this by design ? Strange that it should happen in the early period of trade when one most wants the info about the holdings value etc to decide whether to sell or not. In any case I am not writing down every trade that I made, just in case the system does not keep track of the same and to avoid spending time asking for every such info. Thankfully paper still works.
        No response from [email protected] either. This is getting to a point of “whack a mole” where I have to regularly spend increasing amounts of time pointing out something or the other that doesn’t work in my account that barely has a handful of trades in a month. As a scientist I find this very upsetting and demeaning.
        Thanks.

        • Venu says:

          Hi Jay,
          We’re working on making the tradebook accessible to all users. It has nothing to do with the number of trades.
          About the glitch you’ve reported, I’ll get someone to give you a call and help you with this. It isn’t normal in nature. Chandu isn’t working with us anymore. I suggest you write to [email protected] for all support related issues.

      • jay says:

        It seems that post moderation is knocking off my post. I had written about another glitch in my kite account and it is knocked off. I am now writing to add another glitch to that list.
        The timeline is blank for all charts. The timeline appears only for a fraction of the second when I select the charting option from the Left hand side. After that the timeline window is a blank. I tried changing browsers, but the problem remains.

        • Venu says:

          I can see your other post where you’ve reported the issue that you face while using Kite during market opening. Our team will get in touch with you to understand the exact nature of the issue and provide you a suitable resolution.

  97. Pavan says:

    I have zerodha account. Now I have moved to USA since last year for work and paying taxes as per US norms. Is there anything I need to do for my zerodha account since my residence status is now ‘Non-Resident’.

  98. sush says:

    Hi,
    Sir recently filling form on link http://tradetax.in/, so what is the next procedure to contact

  99. sush says:

    Sir already visited tradetax site and registered but difficult regarding the choose price package. Can u tell me contact no. For the same

  100. illiyas vadakkan says:

    please give me a right way to take back income tax till now my id RI0016

  101. Pritan says:

    As Active Intraday Daily Turn Over Approx 10 to 15 Lac, It Means Annually More then 12 Crore.

    Just Startd 2+ Months Ago, Please Clear How you Calculate the Turnover, As Cover Order Margin Upto 20X So monthly turn over easily Reach Over more then Crore.

    Thank you.

  102. brian says:

    Please help me with the queries i have listed below
    1. List me all the charges involved in NRI TRADING apart from brokerage.
    2. Difference in NRE PIS and NRO PIS , can we open both and what charges involved to maintain both and also the % of tax need to pay.
    3. As per RBI Amendment i suppose we don’t require PIS for opening Trading with NRO and also we can do Equity Intraday , please clarify.
    4. Do you require any sort of deposit for opening Trading Account.

    • Akshay.A says:

      Hi Brian,

      1) Apart from the NRI brokerage which is 0.1% or Rs.200(whichever is lower) per executed order, check here
      2) You could go through this blogpost
      3) We aren’t opening NRO(Non-PIS) account due to a lot of manual work that is done at the banks end (TDS calculation, filing etc.) and at the rates we work wouldn’t be able to support this. It’s best to come through the PIS route.
      4) There are account opening charges for the Trading account, there isn’t any minimum deposit to be maintained in your account.

  103. sush says:

    Hello sir, as per link provided by u i filled application form twice also tried to contact trade tax team but no any response from them please tell me if there is another way to contact

  104. sush says:

    Sir if you have any CA team from mumbai then pls let me know

  105. manjunathth says:

    Hi Sir,
    INTRADAY/SPECULATIVE PROFIT₹-2,56,626.75
    INTRADAY/SPECULATIVE TURNOVER₹2,62,953.85

    SHORT-TERM PROFIT₹10,660.00
    SHORT-TERM TURNOVER₹23,54,562.00
    I have invested my savings into this. I have no other income right now. i haven’t file any IT returns till now, since my income is below 1.8K. and I have loan in bank.
    I read your post and and understood that since my turnover is less than 2crore i don’t need auditing. I am not interested in auditing.
    I am basically from Davangere, Karnataka. and I got to know about tradetax. Can I file IT return from tradetax.

  106. chella says:

    I have paid tax on the basis of Tax P&L generated from Back Office for the previous year. Now, I have received a letter from the Income Tax office asking me to appear before them and to furnish further particulars. Could I be able to get a certified copy of tax P&L from zerodha. To whom I shall contact in this regard.

  107. V Guruprasad says:

    Hi Nitihin !

    For all non-speculative, delivery based transactions, total value of the sales is considered as turnover. For all speculative transactions, aggregate or absolute sum of both positive and negative differences from trades is considered as a turnover. This determination of “turnover” is common for all types of trading including trading in equity, and is based on a Guidance Note of the CA Institue. The tax regime, as it stands now, presumes that the “normal” rate of profit for traders is 8% (and incentive at 6% if receipts are through electronic means).

    I do not have to tell you that trading in equity is not the same as trading in commodities or other things. As such, the very method of presumptive taxation for a equity trader needs a revisit by the taxation authorities. The determination of “turnover” as above for the purpose of maintenance of books also needs a re-look in as much a commodity trader with a Rs 2 crore turnover and a equity trader with the same 2 crore turnover are totally different.

    You, Mr Nithin Kamath and Zerodha, have encouraged Investors / delivery trades by cutting down the brokerage to ZERO. On the other hand, the Finance Ministry who is expected to encourage such Investors (particularly retail investors) have continued to practice a tax regime that is loaded against them (eg. 6% minimum profit, tax audit cut off at Rs 2 crores etc).

    I am aware of your Petition (through Change.org) to the Finance Minister. But, the BJP President Mr Amit Sha ji has his roots in the Stock Broker fraternity and is well placed to readily understand the issue. As one who has already taken solid action to encourage retail investors, you are extremely well placed to revive the efforts. I therefore request you, in this tax season 2017, to revisit the matter and this time take up through the President BJP.

    Thanks for your time and patience.

    V Guruprasad

    • tushar mody says:

      Yes very TRUE…….

      This MATTER….needs to be REVIVED…..& ACTUALLY……EVEN….ALL……OTHER…..MAJOR…….BROKERS……SHOULD….TAKE….UP….THIS….ISSUE……AS….AND….WHEN….TIME….PERMITS…….

      There are NO HIDDEN RECORDS…..in…..SHARE TRADING…….& EVERYTHING IS DONE UNDER….SEBI…..D MAT….BANK….ENTRIES……ETC…..

      FEW….DECADES BACK……THE THINGS WERE DIFFERENT………EVEN….TO…..BUY…..SHARES…..ONE….HAD….TO……FILL….MULTIPLE…..APPLICATION….FORMS…..

      & THEN…..WAIT…..FOR…..””” LUCK “””…….for…..SHARES TO BE ALLOTTED TO YOU……..

      DIGITAL TRANSACTIONS WERE STARTED IN ADVANCED COUNTRIES……..&…WE….WERE ALREADY…LATE…..in…..COMPUTERISATIONS………

      So….CLEARLY……there is a VALID & CLEAR POINT….in….FACILITATING…..the…..””SHARE TRADING “……..to….a LARGE PORTION OF EARNING…..POPULATION……

      NITHIN JI….IS….DO….GOODER……..&…..I AM SURE…..HE….can…TAKE…the….CREDIT…..FOR….THIS….MATTER…..

      what is required is the correct argument & correct perspective…….as COMPARED TO PAST TIMES……

      Thats AL…..MY….LORD…..

  108. V Guruprasad says:

    I missed out this point:

    The CA Institue, which has given the Guidance Note would have kept a typical trader in their focus while defining “Turnover” and may not have intended to apply the definition to an Equity Trader. The application of the Guidance Note to Equity Traders might have been a “bureaucratic accident” !

    V Guruprasad

  109. Adish says:

    Hi Nitin,

    for AY 2017-2018 it is ITR3 instead of ITR4 for business income. Is that correct?

    Thanks

  110. nivedita says:

    dear nitin
    1- would btst be taxed under shortterm capital gain or intraday gain?
    2-lets say i bought 1 lakh share of sintex 6months back and pledged dem to get margin money (my broker does that for me). from the margin money i again buy sintex shares in t+2 segment ie i buy it today and sell it after 1 day widout taking the delivery of the share. woud i incur shorterm capital gain or intraday gain in dis particular case? would fifo be applicable in dis particular case?? what my broker has done is he has shown t+2 as delivery(though actually i didnt take delivery) and has applied fifo on my original pledged shares!! woud it be right??how can dey consider intradays shares for fifo??
    regards

    • 1. Both school of thoughts are there – some say STCG, some intraday. U have to take a call on this.
      2. With margin money you can only trade F&O. Not equity. In your case, FIFO wouldn’t ideally be applicable as the stock that you are holding is not getting delivered.

      Btw taxation is about self policing, it is upto you on how you want to declare all of this. The brokers P&L is just a reference point, you can change it to whatever method suits you and file your ITR. What can’t be changed is your DP statement, ledger, and contract notes.

  111. sundar says:

    Hi Nitin sir…I need your help.

    I do not have any other income than trading…I traded last fin. year 2016-17 and find below the figures

    INTRADAY GROSS PROFIT₹-25,897.50
    INTRADAY TURNOVER₹1,02,056.40
    SHORT TERM GROSS PROFIT₹-1,614.50
    SHORT TERM TURNOVER₹58,363.50
    LONG TERM GROSS PROFITN/A
    LONG TERM TURNOVERN/A
    TOTAL CHARGES₹15,419.94

    My questions:
    1. Do i need an audit for this above..? because turnover is less than 1 crore and profit also 8%..(Infact i incurred loss)
    2. If audit is required, please suggest some sources
    3. which ITR form do i need to file..

    thank you in advance..

  112. piyush says:

    Sir,

    My wife invest in market on my behalf in her trading account. She also trade in F&O. She has made a loss of Rs 150000/- in F&O. But his long term gain is Rs 300000/- and short term gain is Rs 100000/-.

    Is this transaction should be shown in my income tax filing after paying tax since it is my money she is investing or she should file a separate return.
    Some persons say that it should be clubbed with husband’s income as per the income tax law since the wife has no other income and basically she is investing on my behalf.

  113. Veenu says:

    I am a salaried person. My intraday loss is 6000 Rs. Buy value about 20 Lakh, Sell value 6000 less than 20 Lakh.
    From delivery trades in cash market there is a profit both as short term and also as long term capital gains. I am not a regular trader.
    No trading in futures nor in options.
    Can I ignore intraday loss in itr-2? Is there any problem if intraday loss is not carried forward in income tax return ? Use ITR-2 ?

  114. Vishnu says:

    Hi, i am salaried and fall under 20% bracket. I traded only equity/cash segment. Following is my P&L statement
    Equity:
    INTRADAY GROSS PROFIT₹7,530.00
    INTRADAY TURNOVER₹1,48,809.90
    SHORT TERM GROSS PROFIT₹11,539.00
    SHORT TERM TURNOVER₹1,90,084.50
    LONG TERM GROSS PROFITN/A
    LONG TERM TURNOVERN/A
    TOTAL CHARGES ₹35,609.07

    As I’ve total loss of 16,540 and also have taxable income, i need to audit if i want to carry forward the losses, right?
    In case i do not want to carry forward the losses (to avoid audit), can i just file ITR-1?
    What do you suggest is simplest way to fill ITR

  115. Veenu says:

    If a taxpayer does not claim intraday losses (to avoid audit) and does not intend to set off or carry forward losses, incometax department does not lose any tax. Is it objectionable still?
    ITR-2 is pretty simpler. Is it compulsory to go for audit & fill ITR-3 when intention is not to claim small intraday loss of Small amount of Rs 6000 and not to carry it forward ?

    • The issue is, IT department gets to know that you have traded buy not declared on your ITR. They won’t know if it is a loss or profit, unless you declare it. So there are chances of getting a notice if you don’t declare even the loss.
      The correct way to do is ITR3, but yeah some people tend to show intraday losses also as short term losses on ITR2, which is not correct.

  116. ashish says:

    Hi Nithin , i am a zerodha trader since 2011.
    i have a query.Bought x shares of Chamanlal on 30.6.15 at 92
    On 28.12.15 The shares split from Fv 10 to 12
    Now i have 5x shares at 18 Rs
    The issue is that i sold shares on 24.11.16 at 59.5
    If there was no stock split, it wud hv been LTCG, however, coz of the split do i have to pay STCG ? My holding period is same as i did not acquire any new shares,
    In case of Bonus , i understand but split ???
    Thanks

  117. ashish says:

    I guess in case of Bonus , new shares with same FV are credited but in case of Split, the same shares split , i guess ISIN remains same in case of split .

  118. NAVIN says:

    Dear Nithin sir
    I am trading from last year and I got some losses.these are the details:
    Intraday/speculative profit 16084.75
    Intraday/ speculative turn over 27070.95
    Short term profit -71277.57
    Short term turnover 2721210.3

    Futures realized profit -3000
    Options realized profit – 268328.75
    Futures turnover 24000
    Options turnover 3216573.75

    Sir my queries is 1) whether audit is required or not?
    2) which itr is applicable to file ( I am a salaries person)
    3) if I do not show these losses then what will be the effect on my trading?

    • 1. If you have other income and are in taxable bracket – then yes if not no.
      2 .ITR3
      3. Nothing on your trading. There is a chance of getting a IT notice asking why you didn’t show this.

  119. arun says:

    What is closing negative stock? I see it in my brokers statement for FY16-17. Is it some shares I sold during the period that I had transferred from another DP account? I also got some shares from a demerger that i sold within 1 year which are showing in that. Do I need to pay tax on that and how much? thanks..

    • Hmm.. donno what it could mean. Maybe it is a stock that you have sold on 31st march, which is still showing in your demat. Best to speak to your broker and find out. If the stocks you had bought before demerger and till when you sold post is more than 1 year, it will still be long term capital gain. Otherwise STCG and yeah, tax on that.

  120. Akshay S says:

    Dear Nitin,

    When will you start publishing trade-wise profitability, net of taxes and fees per transaction/trade, as is provided by other online brokerages?

    Will save much manual calculations for your clients.

    Regards

  121. Arun says:

    Dear Nithin,
    Can u please sort this out for me?
    I had bought 1000 shares of FRL(future retail) at 150 rs which was merged with BRL(Bharti retail). As a result I got 1000 shares of BRL(now called FRETAIL) at 160 rs and 1000 shares of FEL(originally called FRL) at 25 Rs. I sold them all at those prices all within 1 year. But my broker’s statement shows a loss of 125 rs(150-25) in STCG for FEL. And in a separate ‘negative closing balance’ column it shows -1000 FRETAIL with 160000 rs in credit column.
    I am confused if I should treat it as bonus or demerger and its tax implications. Can u please shed some light? Thanks..

  122. Arun says:

    Hi Nithin,
    Thanks a lot. Have one more question. Can STCG gains be offset against LTCG loss?

  123. Chandramohan says:

    Dear Nithin
    If total STCG is 2000 and the split up is as follows
    Upto 15/6 : loss 2000
    16/6 to 15/9: gain 5000
    16/6 to 15/9: loss 1000
    16/9 to 15/12
    16/12 to 15/3
    16/3 to 31/3
    How to enter in ITR 3, as it is not accepting negative values.
    Regards

  124. BIJOY KUMAR PADHI says:

    Hii Nithin, thanks you very much in advance,i am worried very much,i am worried very much,i am a salaried person,I have suffered losses in 2016-2017,statements from zerodha are as follows
    in equity,
    Intraday gross profit₹17,276.60
    Intraday turnover₹49,572.10
    Short term gross profitN/A
    Short term turnoverN/A
    Long term gross profitN/A
    Long term turnoverN/A
    Total Charges₹13,459.56
    and in f&o

    Futures Gross Profit₹-1,97,467.50
    Options Gross Profit₹-7,901.25
    Total Gross Profit₹-2,05,368.75
    Futures Turnover₹8,79,120.00
    Options Turnover₹7,90,181.25
    Total Turnover₹16,69,301.25
    Total Charges₹1,15,012.16
    and in commodity

    Total Gross Profit₹-10,07,717.50
    Total Turnover₹10,91,977.50
    Total Charges₹6,68,862.56
    my income from my salary exceeds Rs 10,00000
    1,Do i have to go for audit?
    2,zerodha provides details of my trading,i don’t know what auditor (ca) does,
    3,In addition to losses should i have to pay whopping charges to CA too?
    4,If i don’t show my losses in IT return ,And i don’t want to carry forward my losses and get a IT notice ,is my offense is punishable?

    • 1. Yeah best to have it done.
      2. Auditor will make your ITR and file them.
      3. hmm.. it is best to do it. There are CAs who charge lesser as well.
      4. It isn’t really punishable as you wouldn’t have evaded taxes. But it can be extremely inconvenient meeting the ITO etc to explain this.

  125. Gaurav says:

    I am trading f&o intraday in stock and options.
    How calculate turnover for audit.
    Should I do audit with loses also

  126. si991 says:

    I got bonus shares. What will be be the Buy Value of Bonus Shares for calculating profit/loss?

    • Akshay.A says:

      For the purpose of the tax calculations, the acquisition cost of bonus shares is considered as zero. The implication of this is that any amount that is earned at the time of the sale of the shares would be considered as capital gains since there is no cost involved in the purchase. The date of allotment of the bonus shares will be considered as the purchase date of the bonus shares

    • Venu says:

      Cost of Bonus share = 0.

  127. Manjunath Ramesh says:

    Hi Team,

    I want to know how to use Zerodha Pi on Mac. Please help.

  128. Ramesh Sehgal says:

    In case of audit I think a digital signature is required.Will it be possible in such case to file ITR through Zerodha where some other income like salary and rental income is also to be added.

  129. Ramesh Sehgal says:

    Is it then possible to obtain an audited account report from Zerodha and file ITR oneself

  130. Ramesh Sehgal says:

    what help can we get from tradetax.in in preparing balance sheet, getting the a/c audited and filing the ITR

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