Income proof query

Today I received an email from Zerodha part of which read “We have observed that the transactions on your trading account exceed the latest income details we have on record for you. As such, we require you to upload a copy of your latest income proof here or let us know the contact number and convenient time to call you.”

My query is since I am currently into full time trading for the past year and uploaded my bank statement as income proof, any transaction in my trading account will always exceed my income. So what exactly do I need to do. Why did I receive this email?


I keep receiving this email too. In last one year, i got this maybe 4 or 5 times including a full kyc request. I got this email again today.

God knows what rules SEBI comes up. I added some capital last month, perhaps that triggered it, but its a senseless rule as we make money over multiple years and aggregate amount can be more than income. And how does providing bank statements give full info of net worth. This SEBI rule and implementation never made any sense to me but it was once a year affair. But Z is sending it many times …

Not an expert, but I believe in your KYC, your annual income would be mentioned as x and your total trading/investing would be xxxxx. This could have triggered such an email (I am only assuming), I would think you should revise your KYC and update the same.

First time, I am reading that a broker sending an email such as the above. Do call them and find out the reason and update the same here as I am curious too as to what triggered such an email that too from a broker end. Never knew there was a validation of income mentioned in kyc with that of actual trading.

Also you should not be giving anyone your bank statement.

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Yes, so these emails can trigger inspite of annual income being updated. Also comparing last year’s income with transactions hardly makes sense as we can accumulate multiple years income + capital gains on top of it. But rules are rules …

SEBI requires it for trading FnO. Bank statement is probably the easiest option. This time i will send ITR ack and hope that makes a different.

You can upload any one of the following documents as income proof:
Bank account statement for the last 6 months
Latest salary slip
Copy of ITR acknowledgement
Copy of Form 16 in case of salary income
Net worth Certificate issued by a Chartered Accountant

Failure to upload the latest income proof may lead to deactivation of the derivatives segment as per SEBI norms.

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As per this SEBI Circular on Anti-Money Laundering , stockbrokers are required to ensure that your latest income details are available to support your trading activity.

Financial proof is also required from all clients intending to trade in the F&O segment and Such financial proofs are to be reviewed periodically as per exchange guidelines. You can check out this article for more details:


Any reason why this should be triggered multiple times in a year?

Have already submitted (accepted) twice ( July, November) + full kyc once in jan + next time complained and i think did not have to submit after creating ticket in Feb and now again. I have been adding capital throughout the year, but that should not matter as the existing proof already complies to below.

Bank statement for the last 6 months with an average balance of more than ₹10,000. (Statement must be in the name of the Zerodha account holder.)

Suppose I saved 50 lakhs from other sources of income before shifting to full time trading. So now I will have 0 income outside of trading currently.

Therefore, there will be a mismatch between my trading activity and income details. So how will I prove that I had saved 50 lakhs 2 years ago. Do you think the option of networth certificate by CA the most credible option in this case?
Because the 6 month bank statement that I am uploading will never show too much activity except one payout+payin due to quarterly settlement.

  • You simply need to provide them with your latest income proof (like Income Tax Return/ Banks Statement/Networth Certificate etc)
  • You received this inline with The Prevention of Money Laundering Act 2002

  • For Stock Brokers SEBI issues guidelines in the name of Client Due Diligence in pursuance of above mentioned act.