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.
Zerodha
Trader
Zerodha
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
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FAQs
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
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?