How are pledged shares shown in ITR?


I have a large quantity of pledged liquidbees with zerodha. As they are pledged they do not appear in my demat account. Do I have to show them in my ITR? Also are they shown differently in ITR due to it being pledged?

Yes, even if you have pledged it, it still technically belongs to you. So you need to show this on your balance sheet. Shown the same way.

@TAXIQ.IN anything to keep in mind?

You can take report from Broker pledged shares details on the year end for future documentation in case any one asks. The pledged asset will be part of Investment or Stock as per your classification of assets. You can add in notes to accounts regarding assets pledged.

How do we know how many units we have received as dividends from LIQUIDBEES in a particular FY?
The dividends breakdown in Tax P&L statement does not show the dividends received from LIQUIDBEES…

Liquidbees dividend received from zerodha can be found in the consolidated account statement sent by your depositary (NSDL/CSDL)

@nithin Zerodha does not send a statement of pledged holdings via email. I have raised a ticket multiple times on the support portal and also raised this point in this forum, but I was asked to download the report from the console. I believe it would be better if Zerodha can send the statement of pledged holdings by email every month-end or atleast based on a specific request, as we need to submit this to external authorities.

Hello Amit:

NSE/BSE does send in details of the pledged shares as reported by the broker. Please look for email subjected funds/securities balance.

Adding to what @Augustus_Athigaman has said, you also get a quarterly retention statement on your registered mail id which states the value of funds and securities held with the broker. You can go through this support article to understand what a retention statement is.

1 Like