When I compare the P&L report, Tax P&L report, and Verified P&L for the same period, all three show significantly different profit figures — with discrepancies going as high as ₹7–8 lakhs.
I understand that the Verified P&L does not account for taxes and charges, so a minor variance is expected and perfectly acceptable. However, in my case, the difference is far from minor and raises serious concerns.
Ideally, the LTCG and STCG reflected in the Tax P&L should broadly align with the profit shown in the P&L and Verified P&L reports, with only marginal differences due to charges, fees, and taxes. A variance of over ₹7 lakhs for the same period is difficult to justify.
I’ve already raised this with Zerodha but haven’t received a satisfactory explanation so far. I’m keen to understand — what do other traders make of such discrepancies?
Hi Shailesh, underlying data for P&L, Tax P&L and Verified P&L is same, except how we show the figures, for example P&L would show gross figures whereas Verified is net. We’ll review your ticket and reach out.
As per our discussion, I understand that the P&L report reflects gross profit, while the Verified P&L reflects net profit, which can lead to minor differences due to taxes and charges — that part is clear.
However, as you explained, the (cost prices of) transferred shares are treated differently across the P&L, Tax P&L, and Verified P&L reports. If these prices are not handled consistently across all three, it raises serious concerns about the credibility of the Verified P&L report.
Once again, thank you. I look forward to your review and a possible resolution.
We’re excluding the user-entered external trade details for the transferred stocks only from the verified P&L, because there’s no way to validate the numbers. Since Verified P&L is publicly shared, we must ensure we present data that is validated and calculated by our systems. Hope this clarifies.
I understand the rationale behind your approach. When the cost of transferred shares is excluded from the Verified P&L, and the cost of sold shares isn’t considered, it can significantly inflate profits — especially for large-cap stocks.
In contrast, transferred shares and their cost prices are appropriately accounted for in the regular P&L and Tax P&L reports, which I believe is the correct and consistent approach.
The key point I want to emphasise is this: why isn’t the same methodology applied to the Verified P&L?
As it stands, this creates a loophole in the Verified P&L generation process, leading to fundamentally misleading results. For example, a trader could transfer large-cap shares into a Zerodha account, sell them, and the Verified P&L could reflect substantial profits — even if, in reality, there was no gain or even a loss.
If this approach continues, it undermines the credibility, reliability, and usefulness of the Verified P&L report. I say this with emphasis — I would find it difficult to trust Zerodha’s Verified P&L, or similar reports from any broker, under such conditions.
My concern is not merely the mismatch in profit figures across the three reports. The real issue is that the authenticity and trustworthiness of the Verified P&L itself are at stake.
I would also encourage other traders to share their perspectives. Am I the only one seeing it this way, or do others share these concerns?
I hope the seriousness of this concern is fully recognized.
Actually it is other way around, it is called “verified pnl” , how can we say it is verified when we can’t? few users may add random buy averages to inflate profits and these are shared across to lure new investors to follow them or to buy their courses.
If Zerodha, or any broker, ignores transferred shares in the Verified P&L and does not apply the same cost-treatment logic used in the Regular P&L and Tax P&L (whether driven by SEBI/IT compliance or otherwise), it raises serious concerns about the credibility of the Verified P&L.
Whatever methodology is followed for transferred shares in the Regular P&L and Tax P&L must be applied consistently to the Verified P&L as well. Otherwise, the Verified P&L risks losing its very purpose.
Since Zerodha has confirmed that it will not change the process used to generate the Verified P&L, a word of caution: the profit shown in the Verified P&L (from Zerodha — and possibly other brokers) may be inflated by the full sale proceeds of securities that were transferred in from another broker.
This effectively creates a seemingly “authentic” way — given that it appears in a verified P&L report by broker itself — to inflate or overstate profits. In contrast, the Tax P&L and Regular P&L reflect more accurate figures, as brokers are required by SEBI/IT regulations to consider fair market value for transferred shares.
What’s puzzling is that the same fair-value approach isn’t applied to the Verified P&L. That inconsistency raises valid concerns.
As customers, there’s little we can do beyond highlighting such issues in public forums and urging greater transparency.
So, a caution to all: Verified P&L reports, especially when shared publicly, may not always reflect the complete picture. They can be used — intentionally or otherwise — to present inflated performance and attract potential investors. Consider this a fair warning.
We don’t include sale proceeds if shares are transferred, so in simple words entry and exits of share transfers are not included in verified pnl. So, there is no point of inflated numbers. If you still have any doubts please DM me your ID, I can arrange a call to clear them.