How to file ITR for Zerodha?- How to Download the Zerodha Capital Gains Statement?

What is Zerodha Tax P&L Statement or Capital Gains Statement?

Zerodha is a stock broking website that allows users to trade in equity, mutual funds, and derivatives. Zerodha tax P&L is a consolidated statement of all the trading-related transactions performed by its users during the year. Zerodha traders can use it to determine which ITR to file and understand if a tax audit is applicable. You can also download Zerodha Capital Gain Statement from its website and use it in Zerodha ITR filing.

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What are the Components of the Zerodha Tax P&L Statement?

Below are the components of the Zerodha tax P&L statement -

• Equity Tax P&L Statement: Equity tax P&L statement consists of two subcategories -
  
  • Equity Intraday: Equity intraday trading involves same-day share trading where the taxpayer buys and sells the shares within the same day.
  • Equity Delivery: Delivery-based trading refers to the type of trading where traders purchase shares and hold them for some time before selling. Such shares are then transferred to your demat account.
• Mutual Funds Tax P&L Statement: Mutual funds tax P&L can be further divided into equity mutual funds and debt mutual funds. Equity mutual funds are funds that primarily invest in equity stocks, securities, etc. Debt mutual funds involve investing in fixed-income instruments like treasury bills and bonds.
• Futures and Options Tax P&L Statement: This can be further classified into
  • Equity Futures: It involves buying a specific quantity of equity shares on a future date at a price agreed upon today.
  • Equity Options: Equity options provide the traders the right and not an obligation to purchase shares at a specified level before their expiry.
• Commodity Tax P&L Statement:
  • Commodity Futures: These are agreements to buy or sell commodities at a future date at a price agreed upon today.
  • Commodity Options: These provide the buyer the right to purchase commodities at a specified price at a specified date. However, the buyer is not obliged to make the purchase.
• Currency Tax P&L Statement:
  • Currency Futures: Currency futures are agreements that involve the buying and selling of currencies at a future date at the current rates.
  • Currency Options: Currency options give the buyer a right, but not an obligation, to purchase certain currencies at a specific exchange rate before a specific date.

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Benefits of Zerodha Tax P&L Statement

• Your Tax P&L report provides you with a breakup of
  • Speculative equity intraday trade.
  • Non-speculative F&O trades
  • Capital Gains from delivery trades
  • Charges, taxes, and net losses or gains.
• The tax P&L report includes a tradewise P&L for all segments, incorporating a provision for grandfathering long-term capital gains (LTCG) on equity and equity mutual fund investments made on or before January 31, 2018. This tradewise P&L provides all the information needed to report long-term transactions under Section 112A in your ITR.
• In 2019, a tax on all buybacks was introduced, meaning profits from buybacks are no longer taxed in the hands of investors. Consequently, all buyback trades are shown separately in the tradewise P&L, allowing you to reduce the profits from buybacks from the total short-term capital gains.
• The tax P&L report also includes scripwise and tradewise computations of turnover as per Section 44AB, which can help determine if a tax audit is required.
• All dividends for the previous financial year are shown separately and must be filed under the "income from other sources" head in your ITR.
• Charges and credits that are not part of your contract notes are listed on a separate sheet as other debits and credits.

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How to Download the Zerodha Capital Gains Statement?

Zerodha's capital gains statement is a statement of all the capital gains from shares, commodities, and derivatives. It consists of detailed information about the capital gains that have arisen from share trading. Here’s how you can download Zerodha's capital gain statement from Zerodha’s website -

• Step 1. Visit Zerodha console\website
  
  
• Step 2. Enter your password and user Id, and log in using your Kite credentials.
  
  
• Step 3. Click on Reports and then select Tax P&L or statement from the drop-down menu.
  
  
• Step 4. Select the specific financial year and the specific quarter for which you want to download the statement.
  
  
• Step 5. On the next page, you can view all the reports offered by Zerodha.
  
  
  
• Step 6. An Excel sheet is downloaded to your computer.
• Step 7. After downloading, you can view your P&L statement from your PC.

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How to Upload Zerodha P&L Statement on Tax2win?

After downloading the capital gains statement from the Zerodha website, follow these steps to upload it on the Tax2win’s website.

• Step 1. Visit the Tax2win page, and select File your return.
• Step 2. Now select ‘capital gains’ as your source of income and click on continue.
  
  
• Step 3. Now, navigate to the ‘Capital Gains’ section. Click on ‘Zerodha’.
  
  
• Step 4. From the pop-up window, click on browse files and upload the P&L statement.
  
  

Alternatively, you can also upload Zerodha P&L using the Tax2win template.

• Step 1. Click on the Tax2win Template.
  
  
• Step 2.
  Click the 'Download Tax2win Template' button in the first step to download the template. Fill in your capital gain investment details as instructed in the template. Then, upload the completed template by clicking the 'Browse Files' button. Tax2win will read your transactions and calculate your capital gains details within minutes.
  
  

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Tax Audit Applicability for Zerodha

Traders generally use online trading platforms to trade in shares, commodities, securities, and currency. Activities like trading, equity F&O, equity intraday, currency, and commodity trading are considered business income. Therefore, you must determine if a tax audit is applicable to you as per the Income Tax Act. The applicability of tax audit is mentioned under section 44AB of the Income Tax Act.

Earlier, the turnover limit for the applicability of tax audit was 1Cr. However, post-Budget 2021, this limit was increased to 10Cr. provided -

• Cash payments should not be more than 5% of the total payments in the financial year under consideration.

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Which ITR Form is Applicable for Traders?

Zerodha traders are required to file ITR every year at the end of the financial year. The Income Tax Law prescribes multiple ITR forms that have to be selected by the taxpayer based on his/her income type. The taxpayer needs to report his income, compute taxes, and deductions, claim TDS credit, and request a tax refund.

For example, if you have income from share trading, commodity trading, derivatives, etc., you need to file either ITR 2 or ITR 3. The type of ITR applicable to you depends on the nature of your income. For example, if the income from trading is capital gains, you have to file ITR 2, and if your income from trading is considered business income, you have to file ITR 3.

ITR filing for FY 23-24 is underway. With Tax2win, ITR filing is now extremely easy, and you can file your ITR online in less than 4 minutes. Our AI-integrated smart and intuitive ITR filing software automatically selects the applicable ITR form and auto-populates your data making it super easy to file your ITR. The last date for filing ITR for FY 23-24 is 31st July 2024. File ITR now to avoid penalties and notices.

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What is the Due Date for Filing ITR for Zerodha?

Just like any other tax filing, Zerodha ITR filing is done at the end of a financial year. The due date for Zerodha tax filing is as mentioned in section 139 of the Income Tax Act. Given below is the ITR filing deadline for different categories of individuals -

If you are a Zerodha trader and want help with Zerodha tax filing, we are here to make Zerodha ITR filing easy for you with our eCA service. Get expert CAs at your service now!

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