There is no extension in the deadline for filing Income Tax Return (ITR). With five days left for the July 31 due date, the Income Tax Department has asked taxpayers to avoid last-minute rush and complete their ITR process. Zerodha co-founder Nitin Kamath said on Tuesday that even if you have made a loss, don’t forget to file or else you may get a notice from the IT department. Kamath said that his tax P&L report has everything for filing ITR like capital gains, speculative and business income, turnover report, and more. Currently, taxpayers are required to file ITR for FY22 (Assessment Year 2022-23).
Kamath said through his Twitter account, ‘There is no extension for this. do Entered this year. Don’t forget to file even if you have made a loss, you may get a notice.”
He continued, “Our tax P&L report has everything you need to file ITR-Capital gains, speculative and business income, turnover reports, and more.”
Zerodha said in a statement, As a trader, it is extremely important to file your taxes, irrespective of whether you have earned profit or loss. Most people assume that filing tax just because they have made a loss is not necessary, but that is a mistake- you may get a notice from the Income Tax Department, notwithstanding.
“We also understand that filing your taxes can seem complicated, hence we have created reports on the console to make it as easy as possible,” the Zerodha statement said.
Specifically, the Tax P&L report gives a breakup of speculative equity intraday trades, non-speculative F&O trades, capital gains from delivery trades, and charges, taxes, and net profit or loss.
Zerodha said the tax P&L report also includes business-wise P&L for all segments including provision for Long Term Capital Gains (LTCG) on equity and equity mutual fund investments made on or before January 31, 2018. TradeWise P&L includes all. Information required to report long-term transactions u/s 112A in your ITR.
Further, the tax P&L report on the console contains scrip-wise and trade-wise calculation of turnover as per section 44AB, which can be used to determine whether a tax audit is required.
The console also gives you an understanding of the taxes levied on gains from buybacks or dividends received, among other charges.
The stockbroker cited that in 2019, a tax was introduced on all buybacks and profits from buybacks are no longer taxed in the hands of investors. Therefore, all buyback trades are shown trade-wise in the P&L separately to reduce the total short-term capital gains from all buybacks.
Also, all the dividends for the previous financial year are shown separately. Dividend has to be entered under Income from other sources in your ITR. Meanwhile, all charges and credits that are not part of your contract notes are shown on a separate sheet as other debits and credits.
How to download your Tax P&L Statement on Zerodha Console:
– go to console.zerodha.com/dashboard
Click on Reports and then click on Tax P&L.
– Select the Financial Year (Fiscal Year) and Duration (Quarterly or Annually).
– Click on the arrow button.
– Click on Download Tax P&L Report for all segments to download Tax P&L Report.
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