Major issues with AIS for stock sales on Zerodha

I have done both long term and short term delivery based trades in the last FY (2022-23). My AIS shows a lot of entries with zero cost of acquisition and many with “off market” classification for long term capital gains. Due to this, the long term capital gains in the AIS is many multiples of what the real amount is. All these stocks were bought only in Zerodha and sold only in Zerodha over the last few years (no transfers from elsewhere, no off market transactions on the demat account, no other broker account used).

The AIS has nearly 400 entries, and those don’t match with Zerodha’s Tax P&L Report, which shows at the exchange trade level and has more than 1000 entries. The AIS Utility does not allow removing entries and adding them. One can only modify one entry at a time.

Does Zerodha provide this information to CBDT or is it both Zerodha and CDSL or only CDSL (for selling stocks)? Where has my mess originated?

What is anyone supposed to do in such a situation? Should I even bother with AIS?

The amount shown as capital gains is really huge, and I’m worried that this may cause more issues with the tax returns processing. If anyone else has seen something similar recently, please suggest what can be done. Thank you.

@ShubhS9 @nithin Any ideas or suggestions on this?

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Entities like depositories and RTAs are the source of info for the AIS. There are many reasons for AIS discrepancies, as explained by Quicko here. You can check TIS for the source of each component of your earnings, i.e. salary, dividends, interest, purchase or sale of securities/MF etc. Maybe @Quicko can shed more light on your issue.

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Hi @UniqueNoSpacesShort

The information source for AIS is depositories and RTAs for data pertaining to the sale of securities and units of mutual funds. The AIS sometimes shows some incorrect data and to be on the safer side you can provide feedback for the information that is incorrect or incomplete. There is an option for bulk update in AIS as well.

You can take the actual values as reported in Zerodha tax pnl for tax filing purposes.

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