There is no extension of the tax filing deadline (ITR). With five days left until the July 31 due date, the Income Tax Service has asked taxpayers to avoid the last-minute rush and complete their ITR process. Nithin Kamath, the co-founder of Zerodha, said on Tuesday that be sure to file even if you have suffered losses, otherwise you may receive a notice from the IT department. Kamath said his P&L tax report has everything to file an ITR, such as capital gains, speculative and trading income, turnover reports, etc. Currently, taxpayers are required to file an ITR for fiscal year 22 (the 2022-23 tax year).
Via his Twitter account, Kamath said, “There is no extension for the tax return this year. Do not miss the return even if you have suffered losses, you may receive a notice.”
He added: “Our Tax P&L report contains everything you need to file your ITR: capital gains, speculative and corporate income, turnover reports, and more.”
Zerodha in a statement said that as a trader it is extremely important to declare your taxes whether you have made a profit or a loss. Most people assume that just because they made losses there is no need to file a tax return, but that’s a mistake – you can get a notice from the Income Tax Department despite this.
“We also understand that filing your taxes can seem complicated, so we’ve created in-console reporting to make it as easy as possible,” Zerodha’s statement added.
Notably, the tax P&L report gives a breakdown of – intraday speculative equity transactions, non-speculative F&O transactions, capital gains from delivery transactions, and charges, taxes and net gains or losses.
Zerodha said the tax P&L report also includes a trading P&L for all segments, including an allowance for long-term capital gains (LTCG) on equity and mutual fund investments made on or before 31 January 2018. Tradewise P&L contains all the information you need to report long-term trades under Section 112A in your ITR.
In addition, the P&L tax report on the console contains calculations of turnover per certificate and per transaction in accordance with Section 44AB, which can be used to determine if a tax audit is necessary.
The console also gives you an understanding of taxes levied on redemption profits or details of dividends received along with other charges.
The stockbroker reported that in 2019 a tax on all redemptions was introduced and profits from redemptions are no longer taxed in the hands of investors. Thus, all redemption transactions are presented separately in the P&L per transaction, so that the profits of all redemptions can be reduced by the total short-term capital gains.
Similarly, all dividends from the previous year are shown separately. Dividends should be classified under income from other sources in your ITR. During this time, any charges and credits that are not part of your contractual notes are shown on a separate sheet as other charges and credits.
How to upload your P&L tax statement on the Zerodha console:
– Visit console.zerodha.com/dashboard
– Click on Reports then Tax P&L.
– Select the financial year (FY) and the period (quarterly or annual).
– Click on the arrow button.
– Click Download Tax P&L report for all segments to download the Tax P&L report.
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