Hello. I was going over my Tax P&L and noticed that debt instruments like GSecs trades on kite seem to show up along side equity. Equity and Debt Capital gains are taxed at different rates. These instruments should not be listed together.
This also include’s Zerodha’s own Liquidcase ETF. It shows up on the Equity page and is wrongly classified leading to incorrect taxation reports.
So many people will be using this Tax P&L report todo their taxes and if you had large transactions with Debt ETFs - this can cause huge issues with your tax.
Tax P&L clean up and categorization of debt instruments separately is on our task list; We’ll take it up soon and keep you posted, @Kiyoto_Kai
I understand but given that tax season is fast approaching- this should be a priority. If someone uses the values you provide to do their taxes- they may overpay/underpay taxes. Overpaying is bad, but if you underpay and the income tax people come after you, then Zerodha is to be blamed.
At least add a disclosure saying that if you traded any debt/cash instruments, please don’t follow the provided tax P&L.
Hello @Meher_Smaran
This hasn’t been done yet and tax season is here. Thousands of people who rely and consider your Tax P&L will be filling incorrect income tax returns because the debt instruments will be showed to be taxed as equity.