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:
How to Register and Login to Axis Direct?
Axis Direct Trading Account can be opened easily online by following these steps:
- Visit the Axis Direct website
You can access it here.
- Click on Open a new Account
Fill in your personal details such as:
-Mobile number
-Email id
-Name
-City - Click on Get OTP on mobile
As seen below:
- Fill your basic details
Click on Proceed to personal details.
- Fill in your personal details
Enter your PAN and Date Of Birth
- Click on Proceed
Add your address and ‘Confirm‘
- Next, fill Your Details in Personal Details
- You need to add a few more additional details
Add the details and click on ‘Proceed to Bank Details‘
- Fill in your Bank Details
-Bank name
-Bank account number
-IFSC Code
-Confirm bank account number
Click on ‘Proceed‘
- Choose an Axis Direct plan
As per your requirement, select the necessary segments that you want to trade-in
- . Click on Make Payment
- Choose the payment method
And make the payment
- Upload all the required documents.
E-sign using Aadhaar. Enter your Aadhaar number and click on send OTP.
- Enter your OTP
Click on verify OTP
- A Power of Attorney (POA) Document will be sent to your email address
Click on Finish
- Sign your POA documents
Courier it to the respective address
- Your Demat account will be activated after you send your POA documents
The process is complete
How to download Tax Profit and Loss Report?
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.
- Log into your Axis Direct Account
- Next, select ‘Portfolio‘ from your dashboard, under Equity and Derivatives
- Select ‘Portfolio‘ again once the Portfolio Summary site opens
- Now, select ‘Reports‘ and choose ‘P&L statement‘
- Select necessary filters and click on ‘Go‘
- Then, scroll down and click on the PDF or Excel button to download the P&L statement
- Finally, the statement will be downloaded to your device
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How to download Ledger for Axis Direct traders?
Axis Direct sends a contract note for all transactions executed on the stock exchange to the respective trader. However, you can download it from their portal as well.
- Visit the Axis Direct portal and login to your account
- Next, click on ‘My Reports‘ from the top ribbon
- Then, click on ‘Ledger’ from the drop-down list
- Enter the from and to dates in respective boxes and click on the ‘View Report‘ option
- Finally, click on the ‘Contract Note Number‘ to view the report
Trader
FAQs
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.
This statement is used to calculate your Tax liability. Therefore, it is needed to file ITR 3.
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.
Hey @TeamQuicko
Thanks for the blog! Just one quick question - Why do we have to report a quarterly breakdown of Dividend Income under IFOS?
Thank you!
Hey @TanyaChopra
This quarterly breakdown of Dividend Income under IFOS will help to calculate and determine penalty u/s 234C for the delay in payment of Advance Tax.
Hope this helps!
I had received dividend recently but I had noticed that TDS had been deducted. any idea as to why has it happened and is there a way I can claim this TDS?
Hey @HarshitShah
After the introduction of Budget 2020, dividend income is now taxable in the hands of the shareholder; and is also subject to TDS at 10% in excess of INR 5000 u/s 194 & 194K. Foreign Dividend is taxable at slab rates. TDS is not applicable to such dividends. The taxpayer should report such income under the head IFOS in the ITR filed on the Income Tax Website.
Hope this helps!
Hey @HarishMehta
Yes, dividend income is now taxable from FY 2021-22 onwards and it has to be reported under the head of IFOS.
You can read more about it here:
Hi @Maulik_Padh,
You need to pay Income tax on the net taxable income, i.e. after subtracting deductions, expenses, etc.
If the net taxable income is negative i.e. if there is loss, you can carry it forward when filing the ITR
Here are some of the articles which might help
Hi @ameyj
The amount of TDS deducted shall reflect in your Form 26AS only and it will also reflect the name of the deductor.
Using the name of the deductor you can find out on which share you have received the dividend and you can also cross-check the same in your bank statement.
Yes, you are right, TDS is to be deducted when the dividend paid exceeds 5000 INR in a financial year. However, the 5,000 INR limit pertains to all the dividends an individual gets in a year, or the total dividend per shareholder that a company pays out in a year, is left to interpretation, and hence registrars and share transfer agents (RTA) are not taking any chances and are deducting TDS even on small amounts.
Hope this helps
Hi @ameyj
You can submit a grievance on Income Tax Portal mentioning the issue and also attach the 26AS.
The other option is to leave it as it is and clarify it when the tax department sends the notice.
Hi @TeamQuicko
Consider that I have 10 shares each of 10 different Indian companies. Each of the 10 companies are declaring a dividend of INR 100 before the FY ends. Now I will be recieving 1000 as dividend from each company, thereby a total of 10,000.
The 5,000 dividend limit, is it applicable to each company / total dividend recieved by me in a year. If it is applicable to each company, then I would not attract TDS of 10% for dividend.
Also pl clarify, how would the company B know that I have got shares of Company A,C,D,E so on…
@Saad_C @Laxmi_Navlani @Divya_Singhvi @Kaushal_Soni @AkashJhaveri can you help with this?