I need the scrip wise transfer expenses for all equity trades done during fy20-21. The tax p/l does not give scrip wise charges and it isnt there even on console. When quicko imports equity short term and long term capital gains trades, the transfer expenses are not included. Moreover it is possible that on a particular day, I have sold shares of a company from my holding and have also done intraday trades in the same scrip. In this situation, the breakup of transfer expenses for intraday and short/long term trades is needed since for intraday trades I can subtract stt whereas for others, I cannot. Even if I open the contract note for each transaction, the charges are grouped together if I have sold shares of more than one company. Without taking into account the transfer expenses, the p/l is not accurate. Pls provide a solution @siva @Quicko
This is a serious issue, and I have raised tickets for this, but the response (in the ticket) has been that Zerodha is not going to provide statements about STT in an official/signed format near to the trade date, but that they are working on providing a scrip-wise/trade-wise P&L report. Note that P&L applies only once I have sold some shares, and this may happen many years/decades after I bought the shares and paid the STT on the purchase. In response I asked the following:
While a scrip-wise and trade-wise P&L report will be a good thing, it does not address the basic issue here: namely, that the official, signed documentation that Zerodha gives me around the date of a trade does not contain enough information for my tax compliance purposes. I am asking for documentation in support of the tax that I already paid; why is your response that “we will provide you with this information some time in the unknown future, when you make a corresponding sale”?
Do you, or do you not, see the problem with this? Please confirm whether the official policy of Zerodha is to not provide relevant and sufficient documentation about the taxes that Zerodha has paid on behalf of their clients, in a timely manner (near the T-date) and in a way which the clients can use to keep their records properly.
But I haven’t heard back on the ticket after this.
@nithin : Sorry to trouble you with this, but I do think this is a serious issue with bearings on tax compliance for all your customers who need to report capital gains.
The crux of the problem here is that Zerodha’s official policy (to go by Zerodha’s response to my ticket) seems to be to not provide proper documentation about taxes which Zerodha has already paid on my behalf, in a form which satisfies some basic conditions:
- The documentation is sufficient: It contains enough information about taxes paid, to support the claims that I may make in my tax returns possibly many years in the future.
- The documentation is official and signed.
- The documentation is timely: it is provided close to the T-date.
I get this message because the response to my ticket is not that Zerodha will add the requested break-up into the Contract Note (or some other official timely document which is provided near the T-date), but that Zerodha will provided a detailed P&L report. If I hold my shares for years before selling them (which I often do), then this P&L report is far from being timely. Things can change over time, and I don’t want to be left hanging ten years down the line because you couldn’t locate the records of a purchase 10 years in the past (has happened to me with HDFC Securities).
The STT issue looks like a touchy matter at Zerodha.
Few days back at 8am I opened a new topic " Need Scrip wise break up of STT in daily contract note" .
I also attached image of my contract note by another chandigarh based broker (my client ID/ Pan /Name broker name removed)
The contact note I attached shows seperate scrip wise STT seperately for intraday & delivery trades.
It is only a 1/2 page addendum at the end of contact nore…
still waiting for reply. NEED scrip wise STT in the daily contract note not a lumpsum deduction
What is the use benefit advantage of getting STT breakups ?
As @ron94 mentioned in the original post, the tax laws do not allow us to deduct the STT amounts paid as expenses, when computing and reporting capital gains. (Note that every other tax and charge can be deducted, so STT is special in this aspect.) So, to correctly compute and report capital gains and the tax liability on capital gains, we must necessarily know the amount of STT that we paid for each purchase and sale.
Currently, Zerodha does not provide us this information. Instead, the Zerodha contract note for a day clubs together the STT amounts paid for all the transactions done on that day, and only tells us the total STT that was deducted on that day. If someone does more than one transaction on a day, then there is no way to figure out the STT that was deducted per transaction. And this latter information is needed to correctly compute capital gains.
I wonder how @Quicko has been computing capital gains for Zerodha clients without this information, all these years!
Hello @ZeroIndian ,
As per income tax laws, STT is not a deductible under income that arises from capital gain (here aggregate or transaction level STT has no relevance). But, if income is related to trading activity i.e. intraday and F&O, the STT is allowed to claim under Business and Profession head.
Moreover, tax PnL report covers all such trading charges. Accordingly tax PnL on Quicko is being computed taking into the account above tax treatments.
However, we are actively working to get this in order.
Hi @Quicko,
Thanks for your response, but I am not sure why you say the following:
The issue that many of us (@ron94 , @brokenbull , and me in this thread) raise is that there is no way to figure out scrip-wise STT from Zerodha’s reports, if there are two or more transactions (to which STT applies) on any one trading day. @ron94 explicitly says this about the Zerodha P&L report in their post. I haven’t seen a Zerodha P&L report, so I don’t know this about P&L reports. But I do know that the Zerodha Contract Note does not give this breakup.
Are you saying that the Zerodha P&L report does contain enough information to figure out the STT amounts paid for the two legs (purchase, and sale) of a paired buy-sell transaction that falls into the capital gains territory, even when (say) the purchase transaction happened on a day when the client also did some 5 other transactions, each of which incurred STT?
- If the answer is Yes, perhaps you could help @ron94 figure out the numbers that they want, from their P&L report?
- If the answer is No, my question remains: How have you been computing capital gains correctly, if there is no way to figure out the non-deductible part in such cases?
Edited to add:
I noticed the following only now:
Are you saying that we don’t need to know the transaction-level STT to correctly compute capital gains?
I have been computing capital gains according to the following formulas:
- Full value of consideration: the net amount obtained from the sale, plus the STT paid for the sale. The net amount is: gross sale amount, minus all charges and taxes (including STT).
- Cost of acquisition without indexation: (number of shares bought) times (price paid per share) , plus all charges and taxes, except for STT.
To do the computation in this manner I do need to know the STT paid per transaction. Perhaps I am being a moron here, this computation is not correct, and so the per-transaction STT information is not required? Could you make it clear, @Quicko, one way or the other? Thank you!
This is true scriptwise breakup needed also it is great to add if any TDS deducted on particular scrip/dividend in statement that will clear to investors
That’s true. You cannot subtract STT while you are into intraday trading. And I am also facing the exact same issue. My p/l is also not accurate. But I am going to try some of the techniques today and if they work, I’ll post it here.