Income Tax on Capital gains on Shares FY 19-20

General
1

Dear Nitin,
Since this is a global issue affecting all Zerodha clients, I am writing this for your personal attention.
The requirements for tax filing for capital gains on shares are quite different for FY2019-20. Please see ITR2 on the Income Tax website. Page 14 of the form for Schedule 112 A . You will observe that there are many more details required (eg ISIN Code, Fair Market Value on 31 Jan 18 for all shares, etc, etc) which are not presently indicated on the Tax P&L statement for EQ which is available for individual investors from the Zerodha console. In the absence of all this information, it will not be possible to file ones Income Tax return.
Since this will affect every single client of Zerodha, I am writing this to you to request that the Tax P&L statement be recast to include all the additional details in line with the requirements of ITR2, at the earliest.
We will all have to file our returns latest by 30 Nov 20, so may I request that this matter be given priority.
With warm regards
Raydsouza

2

You message would reach soon if u refer them
like @nithin

3

@Quicko hi team i have a doubt. The schedule 112A is coming only for LTCG.

For STCG only total net share values are allowed to be entered.

Please confirm my understanding. This detailed shares details are applicable only for LTCG?

4

Hey,

Under Schedule 112A in ITR-2, taxpayer has to report sale of equity share in a company or unit of equity oriented fund or unit of a business trust on which STT is paid under section 112A.

Sec 112A is applicable FY 2018-19 (AY 2019-20) onwards to levy 10% income tax on only Long Term Capital Gains on the sale of equity shares, equity mutual funds and units of business trust in excess of Rs. 1 lac for a financial year.

Read more about Long Term Capital Gain Tax on our Learn Center.

5

@Quicko got it sir… so for showing STCG we can still show aggregate sale purchase values right? No need for individual share wise details right? Kindly confirm

6

Hey,
Yes, your understanding is correct.

7

Quicko,
My brother works in a IT service co drawing a less than 2.4 Lacs as he is a fresher,without listening to my advice he lost few thousands in fno for the year 2019-20.does it require tax audit?

8

Firstly calculate the turnover, if you declare 6% of the turnover as assumed profit then no tax audit is required.
if his salary plus 6% as above plus any other incomes exceed 2.5 lac he need to file IT return
If the total exceeds 5 Lac, he should be liable to pay tax as well.
Till then no issue
For turnover you can refer to Zerodha Tax PNL as well

@Quicko Please confirm.

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9

Assumed profits dont work…people are getting notices from dept

10

Hey,

If the trading turnover is more than INR 5 crs, tax audit is mandatory. However if it is lesser than that then tax audit is not applicable since the total income is less than the basic exemption limit.

Read more about Tax Audit on our Learn Center.

You can also check out our tool to Determine Tax Audit Applicability.

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