Zerodha sends a contract note for all transactions executed on the stock exchange. Contract Note is a legal obligation of every stockbroker.
In conclusion, it is the confirmation of trade, done on a particular day on behalf of a client on a stock exchange. It is generally sent by End of day. Additionally, this document is available in a digitally signed electronic format. Moreover, to view the details of segment-wise profit and loss, the taxpayer can download the Tax P&L Statement from their Zerodha Kite portal.
Steps to Download Contract Note from Zerodha
- Visit the Zerodha Console portal.
You can access it here.
- Click on the “Login With Kite” option.
You will be re-directed to the login page. Enter the “Username” and “Password” and click on the “Login” option.
- We move to the dashboard of the Zerodha Console.
Click on the Reports from the Dashboard
- Select the appropriate options from the drop-down list.
(Refer to the image given below)
- Select the report type format
Click on the “Download” option.
Details of Contract Note for Zerodha Traders
The contract note describes the important details of a particular transaction together with the date, time, price, quantity traded, etc. It also includes a Reference Number to cross-check the details of the transaction with the stock exchanges. A valid contract note should have the following details in a structured format:
- The SEBI registration number of the Trading Member/ Sub-broker
- Details of the trades like the Order number, Trade number, Trade price, Trade execution time, Traded security & quantity, Brokerage Charged, Details of other Service Charges
- Signature of Authorized Signatory or Digital Signature in Electronic format
- Bylaws and regulations pertaining to Arbitration
Sample – Zerodha Contract Note
A contract note is a legal record of any transaction carried out on a stock exchange through a stockbroker. It is the confirmation of trade done on a particular day on behalf of a client on a stock exchange.
Tax Audit as per Income Tax Act is applicable:
1. If the Trading Turnover in a financial year is up to INR 2 Crore and net profit is less than 6% of the trading turnover.
2. If the Trading Turnover exceeds INR 2 Crore irrespective of profit or loss.
The limit of turnover to determine tax audit has been increased to Rs. 5 Cr under Budget 2020. The new limit is applicable to FY 2020-21. Read more about it here – Applicability of Tax Audit for Trading Income