To understand your trading activity and for its income tax compliance, you need documents like Tax P&L, Contract Note, Ledger / Account Statement. However, before you get any of these documents you need to create your Axis Direct Account and log in.
This article will guide you through the following:
A Tax Profit & Loss Report is essential to calculate taxes on trading income. This report has details such as Date, Time, Script Name, Purchase price, Sale price, Segment and Quantity that help determine the Income Tax on Trading.
No. The Contract Turnover is the sum of the purchase value and sales value. It is not considered for income tax purposes. However, the Trading Turnover or Business Turnover is the absolute profit i.e. sum of positive and negative differences. Hence, this turnover is considered to determine the applicability of the tax audit and the applicable ITR form. Therefore, Trading Turnover is different from Contract Turnover.
How does the Tax profit and Loss Statement help me?
This statement is used to calculate your Tax liability. Therefore, it is needed to file ITR 3.
What is the difference between Trading and Demat account?
A Demat account holds securities and certificates of stocks, shares, etc electronically while a Trading account lets you buy or sell those securities in the stock market.