Whether you invest in stocks, mutual funds, or other securities, you have to keep track of your capital gains and losses to calculate your tax liability. You need a capital gain statement for that analysis.
Let’s discuss what is a capital gain statement and how to get it from Zerodha.
What is Capital Gain Statement?
Capital gains are the profits made on selling any asset such as stocks, equity-based mutual funds or smallcases. If you’ve sold shares and earned some gains, then you might need to pay taxes on those capital gains.
So, a capital gain statement is a tax profit and loss statement which shows you how much tax you owe on the profits you made from selling the above-mentioned assets.
Some brokers use the term “Capital gain statement” while others use the “Tax Profit & Loss” statement but the purpose of both is the same that is to provide information about your tax liability on stock investment income.
Let’s how to get a capital gain statement from Zerodha in a step-by-step manner.
How to Download Capital Gain Statement from Zerodha
Step 1 – Log in to your Zerodha account
You can open a Zerodha’s demat account if you do not have one already. Read this guide to understand the Zerodha demat account opening process.
Step 2 – Go to the Console section
After logging in, you need to go to the Console section. You can find this section in the main menu (top-right corner).
Step 3 – Click on ‘Reports’ and select ‘Tax P&L’.
In the Console dashboard, you will see an option called ‘Reports.’ Click on it and select ‘Tax P&L’ from the drop-down menu.
Step 4 – Select the details as required and click on the blue arrow button
Once you are in the ‘Tax P&L’ section, now select details like financial year, starting quarter and ending quarter and click on the blue arrow button to proceed.
Step 5 – Download the statement
Here you’ll get the details of your investing and trading profits or losses segment-wise.
You will see an option called ‘Download Tax P&L report for all segments’ at the bottom. Click on the link to generate the report. You can download the statement in PDF or Excel Sheet format.
Now you know the process of getting your capital gain statement in Zerodha. Check your capital gain statement on regular basis and if you find any discrepancy in your capital gain statement, you should contact Zerodha’s customer support immediately.
They will investigate the issue and resolve it as soon as possible.
You need a support code to reach out to Zerodha’s support team. You can check out what is support code in the Zerodha article to know the process.
Zerodha is a Bangalore-based discount broker founded in 2010. Zerodha disrupted the traditional broker’s industry by introducing flat or discount brokerage.
Zerodha became the no. 1 broker in India in 2021 with more than 10 million client base.
Zerodha is known for its low brokerage fees, user-friendly platform and innovative products such as Kite, Smallcase, and Golden Pi.
A capital gain statement helps you keep track of your capital gains and losses in a financial year to calculate your tax liability accurately.
If you do not have a capital gain statement, you may end up paying more tax than you should.
When you file your income tax return, you have to report your capital gains and losses in your income tax return, and for that, you need a capital gain statement.
Yes, you can get a capital gain statement for previous years from Zerodha. You can generate the statement for any financial year for which you have traded with Zerodha.
Capital gains are the profits that you earn from the sale of a capital asset, such as stocks, mutual funds, or real estate. The capital gains are calculated as the difference between the selling price and the purchase price of the asset.
When you sell stocks or equity mutual funds, the profit you make from selling them is called capital gain.
In stock market, capital gains are of two types –
If you sell stocks or equity mutual funds after holding them for more than one year, it’s called a Long Term Capital Gain (LTCG).
You need to pay a 10% tax on the profit you make from LTCG on gains above Rs 1 lakh. LTCG tax is exempted up to Rs 1 lakh.
On the other hand, if you sell stocks or equity mutual funds within one year of buying them, the profit you make is called a Short Term Capital Gain (STCG).
The tax rate for STCG depends on your regular income tax slab rates.
Profits earned from equity intraday trading or F&O are considered as business income and you have to pay taxes as per your income tax slab.
Whereas capital gains are profits made from selling assets such as equity shares, mutual funds, equity traded funds, and real estate.
The capital gain does not include selling shares on the same day they were bought which comes under business income.
Zerodha provides a comprehensive set of taxation or Tax P&L reports to its clients to calculate their tax liability accurately and file their income tax returns without any errors.
Capital gain statement and tax profit & loss are one and the same thing.
No, there is no charge for getting a capital gain statement from Zerodha.
No, you cannot get a capital gain statement for your holdings with other brokers from Zerodha. You need to contact your respective broker to get a capital gain statement for your holdings with them.
If you find any discrepancy in your capital gain statement, you should contact Zerodha’s customer support immediately. They will investigate the issue and resolve it as soon as possible.