How to File ITR for ICICI Direct?

An ICICI Direct Trader has to file ITR based on the income they have from trading in equity, mutual funds, or derivatives. ICICI Direct provides a Tax P&L Report to all its traders aggregating the trading transactions done during the financial year. Using the Tax P&L Report, the trader can determine which ITR Form to file and also determine the applicability of the Tax Audit. If you are an ICICI Direct Trader and looking to file your ITR (Income Tax Return), you can refer to the detailed process below.

Tax P&L Statement Tabs Explained

ICICI Direct does not provide a consolidated Tax P&L Statement. Hence, you will have to manually download the tax statements for different segments. However, the information mentioned in these statements are explained below:

  • Trade Date – The date on which the trade was made
  • Exchange – An exchange gain or loss is caused by a change in the exchange rate used such as when an invoice is entered in at one rate and paid at another, this will generate an exchange gain or loss
  • Credit/Debit – Debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is positioned to the left in an accounting entry. Credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account
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Which ITR Form is Applicable for ICICI Direct?

To file ITR is an annual process for ICICI Direct traders. Based on the income situation, the taxpayer needs to file the prescribed ITR Form. The taxpayer should report incomes, calculate and pay taxes, claim TDS Credits, and request a refund for the overpayment of taxes while filing their ITR. The income tax department has notified ITR Forms based on different income situations. To know which ITR Form is applicable to you, use the below calculator. 

Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
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Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
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Taxpayers having income from trading need to file ITR-2 or ITR-3 based on the nature of income from trading. In the case of Capital Gains Income, file ITR-2 and in case of Business Income, file ITR-3.

Due Date for Filing ITR for ICICI Direct

Income Tax Return(ITR) filing is done after the completion of a financial year. Due dates for ITR filing are as per section 139 of the income tax act. Due dates for different category of taxpayers are as follows:

Category

Due Date

Individuals to whom audit is not applicable

31st July of the Assessment Year

Companies

30th September of the Assessment Year

Individuals to whom audit is applicable

30th September of the Assessment Year

Individuals/ HUF who are partners in a firm and firm’s accounts are subject to audit

30th September of the Assessment Year

The above due dates can be extended by the IT Department via order.

Tax Audit Applicability for ITR filing of ICICI Direct

Stock Traders trade in shares, securities, commodities and currency through online trading platforms. Income from trading in Equity Intraday, Equity F&O, Commodity Trading and Currency Trading is considered as a Business Income. Thus, it is important to determine the applicability of Tax Audit as per the provisions of Income Tax Act.

Check Tax Audit Applicability u/s 44AB
Check Income Tax Audit applicability u/s 44AB to file Tax Audit Report Form 3CB - 3CD with your Income Tax Return.
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Check Tax Audit Applicability u/s 44AB
Check Income Tax Audit applicability u/s 44AB to file Tax Audit Report Form 3CB - 3CD with your Income Tax Return.
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The limit for turnover under Section 44AB is Rs. 1 Cr. Under Budget 2020, the turnover limit under Section 44AB has been increased from Rs. 1 Cr to Rs. 5 Cr if the following conditions are satisfied:

  1. Cash Payments do not exceed 5% of the Total Payments in the financial year
    AND
  2. Cash Receipts do not exceed 5% of the Total Receipts in the financial year

Calculation of Trading Turnover

Any person having income from trading in shares and securities should report it as income from business and profession. To determine the applicability of Tax Audit as per the Income Tax Act, we should calculate Trading Turnover for such income. It is important to note that tax liability does not depend on Turnover. The trading turnover should be calculated only when the share trading income is considered as a business income and not when it is considered as capital gains income.

FAQs

How to download the Tax P&L Statement from the ICICI direct portal?

You can download the Tax P&L Statement from the ICICI Direct portal after logging into the portal and navigating through My Account > Statements > Consolidated Portfolio Statement from the dashboard.

Is Trading Turnover the same as Contract Turnover?

No. Trading Turnover is different than Contract Turnover.
Contract Turnover is the sum of the purchase value and sales value. It is not considered for income tax purposes. Trading Turnover or Business Turnover is the absolute profit i.e. sum of positive and negative differences. This turnover is considered to determine the applicability of the tax audit and the applicable ITR form.

I am a trader. Which ITR Form do I need to file for my Income Tax Return?

Taxpayers having income from trading need to file ITR-2 or ITR-3 based on the nature of income from trading. In the case of Capital Gains Income, file ITR-2 and in case of Business Income, file ITR-3.

Open a trading account online on ICICI Direct

You can open a trading account online on ICICI Direct. Recently, stock markets are transformed from an open outcry system to an Electronic system. Trading accounts acts as an investment account that holds your cash or securities electronically and also lets you buy or sell those securities in the stock market. Stock Traders trade many instruments, for example, shares, securities, commodities, and currency through online trading platforms. For Income tax on trading, Equity Intraday, Equity F&O, Commodity Trading, and Currency Trading are considered as a Business Income.

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Steps to open a trading account online on ICICI Direct

  1. Visit the ICICI Direct website.

    Navigate to the website and fill your PAN, Date of Birth and Name on. Click on Next.

  2. Fill in your details.

    Including:
    -Email id
    -Mobile no.
    -Pincode

  3. OTP Verification.

    Enter the OTP that you receive on your registered mobile number.

  4. Set a New Password.

    Enter a new password.

  5. Link your bank account.

    If you have an ICICI bank account just enter the account number. Click on Next.

  6. In case you don’t have an ICICI Bank account. Click on Continue.

    Give access of DigiLocker to ICICI direct by logging into your DigiLocker account.

  7. Complete your DigiLocker Verification.

    Press Continue once you finish the verification.

  8. Upload PAN and photo.

    Fill in your personal and financial details.

  9. Next you need to do an In-Person Verification (IPV) on webcam.

    E-sign using Aadhaar. After that enter your Aadhaar number.

  10. ICICI Direct Trading Account Login

    After 24 hours. you can log in to your account.

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FAQs

What is the difference between Trading and Demat account?

Demat account hold securities and certificates of stocks, shares etc electronically while Trading account lets you buy or sell those securities in the stock market.

Can I have 2 trading accounts?

Yes. An Individual can have as many trading accounts as they want. You can also link the same bank account with different trading accounts. However, you can’t have multiple accounts linked with the same broker.

What is 3 in 1 account?

3 in 1 account refers to as an Individual opening a Bank account, Demat account and Trading account simultaneously with the same bank.

ICICI Direct: Download Holding Statement for Traders

ICICI Direct allows you to download your holding statement in order to understand your investment transactions. Holding Statement includes the contents of an investment portfolio held by an individual or entity, such as a mutual fund or a pension fund. Portfolio holdings include investment products like stocks, bonds and mutual funds, options, futures, exchange-traded funds (ETFs), etc.

You can download these statements from the brokerage platform in the same way as you download Contract Notes from ICICI securities and Tax P&L Statements from ICICI Securities. These are used to calculate Income tax on trading activity.

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Are you an Equity, Intraday, F&O or Commodities Trader? Upload your Tax P&L and file Tax Return online
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Tax Compliance for ICICI Direct Trader
Are you an Equity, Intraday, F&O or Commodities Trader? Upload your Tax P&L and file Tax Return online.
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Steps to Download Holding Statement from ICICI Direct Account

  1. Visit the ICICI Direct portal

    Firstly, log in to your account.

  2. Next, click on the “Customer Service” option

    Click on this from the Dashboard

  3. Click on the Statements Statements option

    Choosethe Transaction Statements option from the drop down

  4. Select the appropriate option from the “Statement Type

    Drop-down list and click on the “View” option

Invested in Intraday?
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FAQs

Is tax audit compulsory for F&O loss?

If the T/O exceeds Rs. 1 cr in a particular FY then Tax Audit is required. However, if the net profit from such transactions is less than 6%/8% of the turnover. therefore, filing a Tax Audit report is compulsory in order to file ITR. Only a CA can file the tax audit report.

What is the difference between the order book and trade book?

The details of the order (executed in the stock market) including quantity, price, and unique order number are in the order book. Additionally, even the execution status and its trade number are in the trade book.
Most of the time, the execution of the order is instantaneous, therefore, order book and trade book reflects the same.

Is Trading Turnover the same as Contract Turnover?

No. Trading Turnover is different than Contract Turnover. Contract Turnover is the sum of the purchase value and sales value. It is not considered for income tax purposes. Trading Turnover or Business Turnover is the absolute profit i.e. sum of positive and negative differences. This turnover is considered to determine the applicability of the tax audit and the applicable ITR form.

Download Contract Note for ICICI Direct Traders

ICICI Direct 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 ICICI Securities portal.

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Are you an Equity, Intraday, F&O or Commodities Trader? Upload your Tax P&L and file Tax Return online
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Steps to Download Contract Note for ICICI Direct

  1. Visit the ICICI Direct portal

    Click on the “Login” option

  2. Enter the required details

    User ID
    Password
    Date of Birth or PAN
    StartIn – choose from the drop-down list

  3. Click on the “Login Now” option

    After having added all the details

  4. Once you log in, select the “Customer Service

    Select this option from the dashboard.

  5. Click on the “Statements” option from the left side

    Next, select the “Digital Contract Notes” option.

  6. Enter the following details to receive a refined result:

    From Date
    To Date
    Market Type
    Document Format

  7. Next, you will receive a list of all the Contract Notes.

    You can also click on the “Contract Note No.” option to download the file in the PDF Format.

A Sample of the ICICI Direct CNC:

Invested in F&O or Intraday?
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Need to file your ITR? Let us help you out!
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FAQs

Will I continue to receive physical contract notes?

ICICI Direct would send a consolidated physical statement for the transactions done during the quarter. This statement would be designed in a very user-friendly format and will be sent to you physically, once in a quarter.

Do I pay anything for the Digital Signed Contract Notes?

No. You do not have to pay anything for the Digital Signed Contract Notes.

For what duration would the Digital Signature Certificate be available on the website?

You can view the Digital Signature Certificate on the website upto seven years.

Is tax audit compulsory for F&O loss?

Tax Audit as per Income Tax Act is applicable:
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
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