Ask Me Anything about Taxation on Trading & Investing #TaxSeason2020

Hey Traders, :wave:

The Tax filing season has begun!

The due date to file your :alarm_clock: Income Tax Return is extended from 30th November 2020 to 31st December 2020 (in case tax audit is not applicable) and 31st January 2021 (in case tax audit is applicable)
& 31st Decemeber 2020 (extended from 31st October 2020) to submit Tax Audit Report.

We are here to answer all your tax-related queries around Equity, Intraday, F&O, or Commodities Trading.
:loudspeaker: Shoot your questions!

Check us out on & like always we have special discounts for Zerodha Traders :wink:

Trading Q&A - Zerodha-01

Update: On account of COVID-19, the Income Tax Due date for FY 2019-20 (AY 2020-21) are extended.

Keep in Mind: Your Zerodha Tax P&L Report includes segment-wise trading details. Download it from Console to prepare your P&L a/c to submit with your ITR.

Here’s are a couple of points to keep in mind where the treatment as per Income Tax may differ.

  1. Expenses
  2. Buy Back Gains
  3. Calculation of Long Term Capital Gains u/s 112A
  4. Transfer In/Out
  5. Devolvement
  6. Reversals
1 Like

How do i keep track of P/L of MF, stock FnO etc with different broker or direct online buying/selling of MF?

1 Like

I have a suggestion rather - Mutual Funds in Coin, Quicko pulls that data from Zerodha account, but remember many would be having funds is SOA format invested previously. So if the process allows us to upload the CAMS statement and process it (Kuvera imports CAMS data beautifully, seamlessly. please refer to that journey).
Also, apart from Capital gains, and Salary (uploading Form 16), for those who have say proprietorship business or income from other sources, there is no provision to change from ITR2 to ITR3.

@Quicko I imported my tax P/L to quicko using the zerodha integration tab. However, I want to point out a problem. By default, quicko adds the the STT also while calculating gains or losses. on your website it says that " Delivery based equity trading is treated as a Non-Speculative Business Income or Capital Gains based on the intention of trading and treatment in previous years". Now if I am treating my delivery based equity trading as capital gains, then STT cannot be deducted as a charge while calculating my income/loss. Therefore the gain/loss calculated will be incorrect. Kindly add a tab that gives the option to the user if he is treating his income as capital gains or business income.

Hey @tradingqnaofgolu,

You can find the consolidated statement of your Mutual Fund Trades from CAMS or Karvy.
At present there is no such statement for aggregate equity, intraday or F&O trade across different brokers. Brokers usually provide aggregate data for transactions across various segments in the Tax P&L report.

When filing your Income Tax Return, you need to report all your incomes for the financial year.

Hope this helps :slight_smile:

1 Like

Hi @rupeshmandal

If you have mutual fund trades on the SOA with the same email id, you will be able to access the consolidated statement from your Karvy / CAMS.
Our development team is working on allowing you to directly upload your Karvy & CAMS statement & are en-route rolling it out shortly.
Based on your Income situation, Quicko automatically chooses the right income tax form for you. :slight_smile:

Didn’t happen to me. It’s still showing ITR2 and didn’t change to ITR3. Don’t know why. It took my Zerodha P&L automatically but no option to upload SOA CAS from CAMS as of now. LTCG grandfather ISIN-wise details as per IT rule need to be uploaded. Also, no provision to update 80G, 80DDD, 80TTA, business income from other sources etc, carry forward losses from previous years, long term and short term losses to carry forward to 8 years and set off against this year’s gains. I had to abandon Quicko and go back to my CA to manually do the needful.

So in short, the user journey, AI, and automation need to be looked upon. A lot of improvement required there.

Hey @rupeshmandal,

We appreciate your feedback. We have incorporated a lot of changes to enhance user journey since we went live with ITR-3. Hope to see you next tax season :slight_smile:

@Quicko well, don’t lose hope. I would still like to give it a try this season. My brother is an NRI, possible to file his tax returns myself? Capital gains, FD interest only. Possible? or shall I route to my CA?

1 Like

hey @ron94,

Thanks for the feedback, we’ll forward it to our product team :slight_smile:

As per the income tax act, delivery based equity trading is treated as income from capital gains. However, based on the intension of trading, the taxpayer can show the income as capital gains or business income.

In case you wish to show your equity trade income as business & profession, refer to below article:

How to add equity trades income as business and profession on Quicko?

how can i get my STT Certificate for FY 19-20

Hey @Aditya_Gupta,

Form 10DB acts as evidence of payment of STT (securities transaction tax) for claiming a tax rebate under section 88E of the Income Tax Act.

However, from the Assessment Year 2009-10 & onwards, no rebate is allowed under section 88E since STT was allowed as a business expense for which a deduction can be claimed. Due to this, Form 10DB has become redundant and no longer necessary.

Hey @rupeshmandal,

Sure, you can file your brother’s tax returns through Quicko. All you need to do is add taxpayer from your Income Tax dashboard.

Are brought forward losses due to CG from previous years to be reported every year gong forward, or only when need to set it off is required?

Hey @Vik
Losses need to be reported when filing the ITR of the financial year to carry forward the losses. And when setting off the losses in the income tax return.

Read more about set off and carry forward losses under Income Tax.

1 Like

Can we expect CAMs and Karvy statement upload feature before 30th Nov. 2020?

We will be going live with CAMs & Karvy upload next week. :slight_smile:

ok, I shall wait then.

1 Like

@Quicko If we get the ITR filing and tax audit done from you for FY20 can the applicable filing charges and audit fees be claimed in the same ITR for FY20?

Since the audit fee is being paid in FY21 but it is for FY20’s ITR can I still claim it in this FY20’s ITR. Or I can claim it only in FY21 ITR?

Can you please suggest. Thanks.

Hey @Praksy,

Yes, you can claim the expenses such as fees paid to a CA for your Income Tax Return as a business expense for that FY.

Read more about other expenses you can claim when filing your ITR with business income