How to download capital gains statement Zerodha?

Hello friends, in this article we are going to learn How to download capital gain statement zerodha to file Income tax returns in india. 

First of all Let’s understand what is capital gain in the Indian stock market?

What is Capital gain in stock market India?

Capital gain in the Indian stock market refers to the profit or gain realised by an investor when they sell a stock or other security for a price that is higher than the purchase price. 

It is a type of profit/loss earned by an investor in the form of an increase in the value of their investment.

The Indian Income Tax Act, 1961, defines capital gain as income arising from the transfer of a capital asset, such as stocks, mutual funds. 

Capital gain is calculated by subtracting the stock purchase price or the cost of acquisition of the stock from the sale price or the consideration received for the asset.

 

Capital Gain = Sale Price of Stock – Purchase Price of Stock

 

How many types of capital gains are there?

There are two types of capital gains in the Indian stock market:

• Short-term capital gain : Short-term capital gain is the profit earned by selling a stock or other security within a period of 12 months from the date of purchase.

• Long-term capital gain :- Long-term capital gain, on the other hand, is the profit earned by selling a stock or other security after holding it for more than 12 months.

How much tax charged for capital gains?

The taxation of capital gains in India varies based on the type of capital gain. 

• Short-term capital gains are taxed at the rate of 15%.
• Long-term capital gains are taxed at the rate of 10% for stocks and equity mutual funds. 
• For debt mutual funds and other securities, long-term capital gains are taxed at the rate of 20% with indexation benefit, and 10% without indexation benefit.

So till now we understood what is capital gain in the Indian stock market. Now let’s focus on our main point. How to download capital gains statements from zerodha.

In this article we are discussing only for zerodha demat account holders. If you are using any other stock broker like upstox, groww, angel one etc. Then read our other articles to download capital gain statements from Upstox, Groww, Angel one, 5Paisa.com etc.

If you want to open a zerodha account then follow these steps in our post.

How to open a zerodha account online step by step?

How to download capital gain statement from zerodha ?

So till now we understood what is capital gain in the Indian stock market. Now let’s focus on our main point. How to download capital gains statements from zerodha.

 

Step 1 :- Log in to your Zerodha account via Desktop or Mobile. 

Step 2 :- Go to the Zerodha console dashboard.

Now the Console dashboard will open. There will be many options in the Header menu eg. Dashboard, Portfolio, Reports, Funds, Account, Profile.

Step 3 :- Click on the Reports menu. Then select Tax P&L from it.

Now the zerodha Tax P&L page will be open. There you will have some options to select from.

Eg. Select Financial Year, Select From Quarter, Select To Quarter.

Step 4 :- Now select Financial year. For example 2022-2023. So it will be considered from April 2022 to March 2023.

Step 5 :- Then select from and to quarter. There are 4 quarters in one year. 1 Quarter equals a 3 month period. So 4*3 Quarters = 12 months or 1 Year.

Quarter	Duration
Quarter 1	April to June
Quarter 2	July to September
Quarter 3	October to December
Quarter 4	January to March

So select a quarter from 1 to 4 click on Next Arrow.

Now zerodha will show you the Tax Profit/Loss based on segments.

Eg. Equity, Currency, Futures & Options , Commodity, Mutual Funds.

If your CA asks you for a separate segment capital gain statement then download it separately. Else there is button given below for Download Tax P&L statement for all segments

Click on that button and one excel file will be downloaded. So this is your capital gain statement file.

It is important to note that the Zerodha Capital Gains Statement will only show the details of the transactions that were executed through Zerodha.

Things need to be checked on capital gains statement zerodha

If you’ve made capital gains/losses through other platforms or sources, you will need to manually calculate and report them in your income tax return.

It is important to note that this statement is required to accurately report your capital gains or losses while filing your income tax returns. 

Therefore, it is recommended that you download this statement as soon as it is available, which is usually around the end of the financial year.

In addition to the steps mentioned earlier, there are a few things to keep in mind while downloading the Zerodha Capital Gains Statement:

1. Check the Financial Year:- Ensure that you select the correct financial year for which you want to download the statement. If you select the wrong year, the statement will show the capital gains or losses for the selected year only, which may not be what you need.
2. Verify the Data: Once you’ve downloaded the statement, it is important to verify the data to ensure its accuracy. Check the details of each transaction to ensure that they match your records.
3. Keep a Backup: It is always a good practice to keep a backup of your Zerodha Capital Gains Statement. You can save it to your computer or cloud storage to ensure that you have access to it even if you lose the original copy.

Benefits of downloading zerodha capital gains statement

Now, let’s discuss some of the benefits of downloading the Zerodha Capital Gains Statement and filing your income tax returns accurately:

1. Avoid Penalties: If you fail to report your capital gains or losses accurately, you may be liable to pay penalties or face legal action. By downloading the Zerodha Capital Gains Statement and verifying the data, you can ensure that your income tax returns are accurate and avoid any penalties.
2. Claim Tax Benefits: By accurately reporting your capital gains or losses, you can also claim tax benefits that you are eligible for. This can help you save money on your income tax and reduce your overall tax liability.
3. Build Trust: Filing your income tax returns accurately and on time can help build trust with the government and financial institutions. This can be beneficial in the long run, especially if you are looking to apply for loans or other financial services.
4. Plan for the Future: By keeping accurate records of your capital gains and losses, you can also plan for the future and make informed investment decisions. This can help you maximize your returns and achieve your financial goals.

Conclusion  

In conclusion, downloading the Zerodha Capital Gains Statement and accurately reporting your capital gains or losses while filing your income tax returns is a crucial step in your financial journey.

By following the simple steps mentioned in this article, you can ensure that the process is hassle-free and that you reap the benefits of doing so.

Remember to verify the data, keep a backup, and file your returns on time to avoid any penalties and build trust with the government and financial institutions.