Which ITR to file for Proprietorship Firm?

Just like individuals, HUFs and companies are required to file income tax, proprietorship firms are also obligated to file income tax. In India, a sole proprietorship is not taxed as a different entity, the owner of the business files the taxes for the business just like an individual return. This article will help you understand various aspects related to filing ITR for a Proprietorship Firm

What are the Tax Rates for Proprietorship Firm?

Income Tax rates for proprietor’s who are less than 60 years old

Income Range  Current Income Tax Rates New Income Tax Rates
Up to INR 2,50,000 NIL NIL
INR 2,50,001 to INR 5,00,000 5% 5%
INR 5,00,001 to INR 7,50,000 20% 10%
INR 7,50,001 to INR 10,00,000 20% 15%
INR 10,00,001 to INR 12,50,000 30% 20%
INR 12,50,001 to INR 15,00,000 30% 25%
Above INR 15,00,000 30% 30%

Income Tax Rates for proprietor’s between the age of 60 and 80 years

Income Tax Slab Old Tax Rate Health and Education Cess
Income up to INR 3 lakh Nil Nil 
Income between INR 3 lakh and INR 5 lakh 5% 4% of Income Tax
Income between INR 5 lakh and INR 10 lakh 20% 4% of Income Tax
Income that exceeds INR 10 lakh* 30% 4% of Income Tax

Income Range New Income Tax Rates
Up to INR 2,50,000 NIL
INR 2,50,001 to INR 5,00,000  5%
INR 5,00,001 to INR 7,50,000 10%
INR 7,50,001 to INR 10,00,000 15%
INR 10,00,001 to INR 12,50,000 20%
INR 12,50,001 to INR 15,00,000 25%
Above INR 15,00,000 30%

Income Tax Rates for proprietor’s more than 80 years

Income Tax Slab Old Tax Rate Health and Education Cess
Income up to INR 5 lakh Nil Nil 
Income between INR 5 lakh and INR 10 lakh 20% 4% of Income Tax
Income that exceeds INR 10 lakh* 30% 4% of Income Tax

Income Range New Income Tax Rates
Up to INR 2,50,000 NIL
INR 2,50,001 to INR 5,00,000  5%
INR 5,00,001 to INR 7,50,000 10%
INR 7,50,001 to INR 10,00,000 15%
INR 10,00,001 to INR 12,50,000 20%
INR 12,50,001 to INR 15,00,000 25%
Above INR 15,00,000 30%
  • Surcharge applicable if total income is more than INR 50 lakh and up to INR 1 crore: 10% of income tax
  • Surcharge if total income exceeds INR 1 crore: 15% of income tax

Tax Audit for Proprietorship Firm

Tax Audit will be mandatory for a proprietorship firm if they fall under the following category:

  • If the turnover of the proprietorship firm is more than INR 1 crore in an assessment year
  • In the case of a professional, if the total receipts of the proprietorship exceed INR 50 lakh
  • If the proprietorship is under any presumptive tax scheme irrespective of the annual turnover, a tax audit is mandatory.
Check Tax Audit Applicability u/s 44AB
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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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Which ITR form to File for Proprietorship Firm?

Depending on the nature of the business, a proprietorship firm can file:

  • ITR 4: If the proprietorship firm falls under the presumptive taxation scheme

What are the Due Dates to File ITR for Proprietorship Firm?

The due dates for filing return for a proprietorship firm depend on tax audit applicability:

  • 31St July: For proprietorship firm where tax audit is not necessary
  • 30th September: For proprietorship firm where tax audit is necessary
  • 30th November: For proprietorship firm who have international transactions for business purpose
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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How to file ITR for Proprietorship Firm?

Proprietors have to file their income tax returns online via the e-filing portal. One needs to register on the e-filing portal to file ITR online, if this is already done then log in by entering the PAN number to file the return. After filling in all the necessary information, make sure to e-verify the return before submitting it to make sure there are no errors.

Which ITR to file for Partnership Firm?

As per the Income Tax Act, a partnership firm is ‘’Persons who have entered into a partnership with one another are called individually “partners” and collectively “a firm”, and the name under which their business is carried on is called the firm name.’’ Just like individuals, HUFs and companies, partnership firms are also liable to pay income tax. This article will help you understand various aspects related to filing ITR for a Partnership Firm

Tax Rates for Partnership Firm

Partnership firms are liable to pay income tax at the rate of 30% on the total annual income. Apart from this, if the total income exceeds INR 1 crore, then the firm is also liable to pay a surcharge at the rate of 12%. The partnership firm must also pay education and secondary education cess in addition to income tax and surcharge.  The education and secondary education cess is 2% and 1% respectively.

A partnership firm, registered or unregistered is also suppose to pay alternate minimum tax which cannot be less than 18.5% of the adjusted total income.

Audit Requirement for Partnership Firm

A partnership firm will require an audit if they fall under the following category:

  • Carrying out a business and if total sales exceed INR 1 crore in the previous year.
  • Carrying on a profession and gross receipts in the profession exceed INR 50 lakhs in any previous year.

Income Tax Calculation for Partnership Firm

When calculating the total taxable income, the firm must also take into account certain deductions that they can claim while filing their return:

  • Remuneration or interest paid to the partners which are not in accordance with the terms of the partnership deed
  • If remuneration paid to partners is in accordance with the terms of the partnership deed but such transactions were made or were in relation to anything that pre-dates the partnership deed.
  • Salary, bonus, commission, or remuneration paid to non-working partners.

ITR Form for a Partnership Firm

Partnership firms for filing income tax returns have to file form ITR 5. Firms can file the return via Income Tax Department’s e-filing portal. One does not need to attach any supporting documents while filing ITR but if requested by the ITD, then they have to be submitted. It is not compulsory for a partnership firm to file an income tax return online if it does not require a tax audit. Moreover while filing the return, the partners must have a class 2 digital signature for the verification process.

It is important to not that ITR 5 is for filing the return for the partnership firm only and not for the partners, they have to file ITR 3.

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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Tax Due Dates for Partnership Firm

The due dates for filing return for a proprietorship firm depend on tax audit applicability:

  • 31St July: For proprietorship firm where tax audit is not necessary
  • 30th September: For proprietorship firm where tax audit is necessary
  • 30th November: For proprietorship firm who have international transactions for business purpose

FAQs

Is a digital signature mandatory for ITR filing of partnership?

Yes, in case of online filing of ITR, the digital signature of the partners is mandatory.

Is it compulsory for a partnership firm to file ITR online?

If a tax audit is not necessary then it is not compulsory to file ITR online.

How to File ITR for Sharekhan?

A Sharekhan Trader has to file ITR based on the income they have from trading in equity, mutual funds, or derivatives. Sharekhan 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 a Sharekhan Trader and looking to file your ITR (Income Tax Return), you can also refer to the detailed process below.

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Need helping to file your ITR? Don't worry, we can help you!
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Have you invested in F&O and Intraday?
Need helping to file your ITR? Don't worry, we can help you!
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Tax P&L Statement of Sharekhan Explained

Therefore, as you can see from your image, your statement provided by the portal is not a consolidated one. Therefore, you have to download the statements for the different segments separately. Given below is the break down of the tabs mentioned from the above statement:

  • Holding Period – It is the return on an asset or portfolio over the whole period during which it was held. It is one of the simplest and most important measures of investment performance
  • Realized Gain/Loss – It refers to profit or loss on a completed trade
  • Short Term Transaction -It refers to those trading strategies in stock market or futures market in which the time duration between entry and exit is within a range of few days to few weeks
  • Long Term Transactions – Transactions involving capital assets you held more than 1 year are generally long-term
  • Speculation Transaction – It means a transaction in which a contract for the purchase or sales of any commodity including stocks and shares is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips

Which ITR Form is Applicable to Sharekhan?

To file an ITR is an annual process for Sharekhan 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 refund for the overpayment of taxes while filing their ITR. The income tax department has also notified ITR Forms based on different income situations. To know which ITR Form is applicable to you, you can 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.
Explore
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 of Filing ITR for Sharekhan

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. Therefore, 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

To add, the above due dates can be extended by the IT Department via order.

Tax Audit Applicability for Sharekhan

Stock Traders trade in shares, securities, commodities and currency through online trading platforms. Additionally, 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.
Explore
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.
Explore

The limit for turnover under Sec 44AB is Rs. 1 Cr. Under Budget 2020, the turnover limit under Sec 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 for Sharkehan

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 also 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.

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FAQs

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

You can download the Tax P&L Statement from the Sharekhan portal by navigating to Scrip Summary > Equity Scrip Summary (or any other Scrip Summary) section 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. Hence, it is not considered for income tax purposes. Trading Turnover or Business Turnover is the absolute profit; that is the 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. Therefore, in the case of Capital Gains Income, file ITR-2, and in the case of Business Income, file ITR-3.

How to File ITR for Upstox?

A Upstox Trader has to file ITR based on the income they have from trading in equity, mutual funds, or derivatives. Upstox 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 a Upstox Trader and looking to file your ITR (Income Tax Return), you can refer to the detailed process below.

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Need helping to file your ITR? Don't worry, we can help you!
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Have you invested in F&O and Intraday?
Need helping to file your ITR? Don't worry, we can help you!
[Rated 4.8 stars by customers like you]

Upstox Tax P&L Statement Tabs Explained

Therefore, as you can see from your image, your Tax P&L Statement contains the following columns:

  • Scrip Code/Scrip Name – It is a term used in the stock market where companies can sometimes pay dividends in the form of additional shares/stock rather than in money. It is also a written document that acknowledges the debt
  • The Buy/Sell/Balance sections contain details of the quantity, average and the amount
  • Close Rate – The exchange rate for two currencies at the end of a period of time, such as a trading day or month
  • Close Stock – Closing stock is the amount of inventory that business still has on hand at the end of a reporting period. This includes raw materials, work-in-process, and finished goods inventory. 
  • Net P/l, +P/-L – It refers to the values calculated from the realized and unrealized P&L section
  • Realized P&L – It refers to profit or loss on a completed trade
  • Unrealized P&L – It is the current profit or loss of an open position

Which ITR Form is Applicable for Upstox?

To file an ITR is an annual process, for Upstox 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 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.
Explore
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.
Explore

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 Upstox

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

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.
Explore
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.
Explore

The limit for turnover under Sec 44AB is Rs. 1 Cr. Under Budget 2020, the turnover limit under Sec 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.

Import Your Trades
File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

Import Your Trades

File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

FAQs

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

You can download the Tax P&L Statement from the Upstox BO portal by navigating to Bill > Proft/Loss section from the dashboard. Apply the appropriate filters to download the specific statement you wish to download.

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.

How to File ITR for Motilal Oswal?

A Motilal Oswal Trader has to file ITR based on the income they have from trading in equity, mutual funds, or derivatives. Motilal Oswal 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 a Motilal Oswal Trader and looking to file your ITR (Income Tax Return), you can refer to the detailed process below.

Have you invested in F&O and Intraday?
Need helping to file your ITR? Don't worry, we can help you!
[Rated 4.8 stars by customers like you]
Have you invested in F&O and Intraday?
Need helping to file your ITR? Don't worry, we can help you!
[Rated 4.8 stars by customers like you]

Tax P&L Statement Tabs Explained

You can view the profit and loss statements from the Motilal Oswal portal. Motilal Oswal doesn’t provide a consolidated tax profit and loss statement. Therefore, you have to toggle through their tabs as shown in the above image to view the statements from the different segments. Given below is the breakdown of the profit and loss statement tabs:

  • Average Sell Rate – The average selling price of goods or commodities is the average price at which a particular product or commodity is sold across channels or markets
  • Total Sell Value – The total amount of sales in a given period. Total sales revenue can be represented in several ways, but it is typically formulated as total number of units sold times price per unit 
  • Average Buy Rate – The average buying price of goods or commodities is the average price at which a particular product or commodity is bought across channels or markets
  • Realized Gains/Loss – Realized profit is the profit that comes from a completed trade; in other words, a trade that has been exited. Realized profit is usually already deposited into the trader’s trading account and can be withdrawn from their trading account to a bank account
  • Securities Transaction Tax (STT) – It is a tax payable in India on the value of securities (excluding commodities and currency) transacted through a recognized stock exchange

Which ITR Form is Applicable For Motilal Oswal traders?

To file an ITR is an annual process for Motilal Oswal trader. 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 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.
Explore
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.
Explore

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 Motilal Oswal traders

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

Stock Traders trade in shares, securities, commodities and currency through online trading platforms. For Income tax on tradingEquity Intraday, Equity F&O, Commodity Trading and Currency Trading are 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.
Explore
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.
Explore

The limit for turnover under Section 44AB is Rs. 1 Cr. Under Budget 2020, the turnover limit under Sec 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.

Import Your Trades
File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

Import Your Trades

File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

FAQs

How to download the Tax P&L Statement from the Motilal Oswal portal?

You can download the Tax P&L Statement from the Motilal Oswal portal by clicking on the MO Genie option and selecting the Profit and Loss Statement option.

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.

How to File ITR for Kotak Securities?

A Kotak Securities Trader has to file ITR based on the income they have from trading in equity, mutual funds, or derivatives. Kotak Securities 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 a Kotak Securities Trader and looking to file your ITR (Income Tax Return), you can refer to the detailed process below.

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Tax Compliance for Kotak Securities 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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Tax Compliance for Kotak Securities Trader
Are you an Equity, Intraday, F&O or Commodities Trader? Upload your Tax P&L and file Tax Return online.
[Rated 4.8 stars by customers like you]
Promo Code
Kotak

Tax P&L Report Tabs Explained

The above image is of the Kotak Equity segment statement. Kotak doesn’t provide a consolidated Tax P&L Statement. Hence, you have to download all the segments separately. The tabs included in the Tax P&L Statements are mentioned below:

  • Cost Basis – It is the original value of an asset for tax purposes, usually the purchase price, adjusted for stock splits, dividends and return of capital distributions
  •  Proceeds – Cash received from the sale of goods or services and can be discussed as gross or net
  • Square Off – It is a trading style used by investors/traders mostly in day trading, in which a trader buys or sells a particular quantity of an asset and later in the day reverses the transaction, in the hope of earning a profit

Which ITR Form is Applicable for Kotak Securities?

To file ITR is an annual process for Kotak Securities 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 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.
Explore
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.
Explore

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 Kotak Securities

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

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.
Explore
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.
Explore

The limit for turnover under Sec 44AB is Rs. 1 Cr. Under Budget 2020, the turnover limit under Sec 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 income tax on trading 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.

Have you invested in F&O and Intraday?
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FAQs

How to download the Tax P&L Statement from Kotak Securities?

You can download the Tax P&L Statement from the Kotak Securities by navigating to Reports > Trades section from the dashboard. Apply the appropriate filters to download the specific statement you wish to download.

Is Trading Turnover the same as 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.

Income Tax e-Filing Portal : Change ITR Form Details

As it usually takes a month from the date of filing for the Income Tax Department (ITD) to process tax returns. The taxpayers who have filed their Income Tax Return (ITR) for the Financial Year 2018-2019 onwards can update or change certain details in their ITR form. These updates can be made prior to the processing of the return. The user can change details of:

  1. Bank Account Details
  2. Address Details and,
  3. E-Mail ID/Mobile Number Details
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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Steps To Change ITR Form Details

  1. Go to Income Tax e-Filing Portal

    Log in using valid credentials.

  2. Click on My Account

    Go to Service Request

  3. Select “New Request” from the drop-down list.

    Select “Change ITR Form Particulars” from the drop-down list.

  4. Click on submit

    Enter the acknowledgment number

  5. Enter the correct details in the respective field

    Bank Account Details, Address Details or E-Mail ID/Mobile Number and click on submit.

  6. A success message will be displayed on the screen.

    The process is finished.

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FAQs

Can I make changes in filed ITR?

Yes. A taxpayer can make changes to filed ITR before it gets processed by the CPC Bangalore. You can make changes online from Income Tax E-filing Portal or by filing Revise ITR.

Is it possible to make changes in Income using above facility?

No. You can only make changes to primary information using change in ITR Form Particulars function.

How to file ITR Online?

A taxpayer can file ITR online using any of the following options:
1. Visiting Income Tax E-filing Portal,
2. Using ITR Utility issued by the IT Department,
3. Using Online Platforms like Quicko.

How to download ITR V Acknowledgement Form online? Send ITR V to CPC, Bangalore

What is ITR V Acknowledgement Form?

ITR V Acknowledgement Form means Income Tax Return Verification Form. It is also known as ITR V (Acknowledgement). When a taxpayer files the ITR (Income tax return), they receive ITR V on their registered e-Mail ID from the Income Tax Department (ITD). The taxpayers also have the option to download the ITR V Acknowledgement Form from the Income Tax e-Filing website. The process of ITR filing is not complete unless the ITR is verified by the taxpayer. You can either e-Verify Income Tax return or send ITR V to CPC Bangalore.

ITR-V is password protected for security reasons. The password is your PAN in lower case followed by your Date of birth. For Example:
PAN: ABCPP1234A
DOB: 01/01/1990
Password: abcpp1234a01011990
Tip
ITR-V is password protected for security reasons. The password is your PAN in lower case followed by your Date of birth. For Example:
PAN: ABCPP1234A
DOB: 01/01/1990
Password: abcpp1234a01011990

A taxpayer can access details of all his ITR filings by logging into Income Tax e-Filing Portal. Income Tax e-Filing Portal has all the details of a particular PAN holder.

ITR e-Verification
An expert assisted Income Tax Return(ITR) e-verification for Individuals and HUFs.
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ITR e-Verification
An expert assisted Income Tax Return(ITR) e-verification for Individuals and HUFs.
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Sample ITR V Form

Track Your ITR Status
Check your Income Tax Return Status using the PAN and Acknowledgment number - which is allocated by the Income Tax Department after filing your ITR.
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Track Your ITR Status
Check your Income Tax Return Status using the PAN and Acknowledgment number - which is allocated by the Income Tax Department after filing your ITR.
Explore

Steps to Download ITR V (Acknowledgement)

  1. Go to Income Tax e-Filing platform

    Log in using valid credentials on the e-Filing portal.

  2. View Filed Returns

    Click on e-File > Income Tax Returns > View Filed Returns

  3. Download Receipt

    Click on the option to download receipt which is the acknowledgement form.

Track Your ITR Status
Check your Income Tax Return Status using the PAN and Acknowledgment number - which is allocated by the Income Tax Department after filing your ITR.
Explore
Track Your ITR Status
Check your Income Tax Return Status using the PAN and Acknowledgment number - which is allocated by the Income Tax Department after filing your ITR.
Explore

Steps to send ITR V to Income Tax Department, CPC Bangalore

  • Print the ITR-V document
    • Take a print out of ITR-V. Print out should be only in black ink. Make sure that the printed copy is readable. Please use the InkJet/ Laser Printer to print the ITR-V. The use of a dot matrix printer should be avoided. Do not print any watermarks on printed ITR-V
  • Sign the document
    • Sign the ITR-V. Use blue ink pen for signature. Photocopy of the signature will not be accepted. Signature of a taxpayer should not be on Barcode. Barcode and numbers below barcode should be clearly visible in ITR-V
  • Take precautions
    • Do not write anything on the back of the paper. Additionally, use A4 size paper. For Original and Revised Returns ITR-V, do not print them back to back. Moreover, do not staple the forms
  • Deliver the document
    • Enclose your ITR-V in a white A4 size envelope and send the envelope either through speed post or ordinary post. Do not send it via registered post. No need to submit any supporting documents or annexures along with ITR-V
  • Delivery address
    • Send the envelope to the following address within 120 days from the date of filing of ITR: Centralized Processing Centre, Income Tax Department, Bengaluru 560100

Once ITR-V will reach the CPC Bangalore, you will receive an email confirmation of the same. Your ITR will be processed by the IT department once it is verified.

The due date to e-Verify the returned filed in the previous Assessment Years - 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20 has been extended to the 30th September 2020
Tip
The due date to e-Verify the returned filed in the previous Assessment Years - 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20 has been extended to the 30th September 2020

Delay in Verification of ITR

There are cases where there is genuine hardship a taxpayer faces due to which they could not e-verify the return. The taxpayer can file a condonation delay request on the Income Tax e-Filing portal. However, such relief is given to taxpayers based on certain criteria.

  1. There is a genuine hardship on merits
  2. The claim is genuine and correct
  3. Income for the particular ITR filed is not assessable in the hands of any other person

FAQs

What is the password to open ITR-V?

ITR-V is a password-protected document. The password is your PAN in lower case followed by your Date of Birth in DD/MM/YYYY format.

Do I need to send ITR-V to Income Tax Department?

Once ITR is filed by you, you need to verify ITR. You can verify your ITR online through e-verification or you can send it to the Income Tax Department.

Where do I have to send ITR-V?

You can verify your return in an offline manner. In that case, you have to send a signed copy of ITR-V to Centralized Processing Centre, Income Tax Department, Bengaluru – 560500. You can send ITR-V within 120 days from the date of filing return. You can send ITR-V by normal post or speed post (Not by courier or Registered post).

Can I download acknowledgment of previous years? 

Yes, you can download ITR-V of all the previous years for which you have e-Filed your Income Tax Return (ITR). You can not download the acknowledgment of the year for which you have not e-Filed your ITR.

Who can view filed forms?

Anyone who is registered on the e-Filing portal can view the forms filed by them or on behalf of them by their authorized representative.

How to View or Upload Income Tax Forms?

What are Income Tax Forms that a Registered User can View?

The service to view filed forms is available to all registered users of the e-Filing portal post login. These users can view all the previously filed income tax forms. Additionally, it allows you to:

What are the Income Tax Forms that a User can Upload?

Furthermore, the taxpayers can also upload the income tax forms on the e-filing portal. Post login, the users will be able to:

  • File all Income Tax Statutory Forms online or offline (the online mode is preferrable)
  • Verify the Income Tax  Statutory Forms

Steps to View Filed Forms

  1. Login to the account

    The user must login to their account using their user ID and password.

  2. View Filed Forms

    Click on e-file > Income Tax Forms > View Filed Forms from the dashboard.

  3. Search for the appropriate form

    In case you have several forms, on the View Filed Forms page, enter form name or form number and the search bar. You will be able to view all the forms filed by you or by the CA with the form status as accepted or rejected or verified by the CA.

  4. Download Filed Form

    For the selected form, the Assessment Year in which the form was filed is displayed with a download option. Click Download to begin downloading the form / receipt / attachments submitted along with form.

The taxpayers can download filed ITR Forms for the following reasons:

  • For obtaining a loan from banks
  • For Trading in the derivatives segment of the capital markets, brokers would require the previous ITR forms
  • While Making an application for Visa

What are the Steps to Upload Income Tax Forms

  • Login to the e-Filing portal and click on e-File > Income Tax Forms > File Income Tax Forms
  • Select the required form to upload from the relevant categories presented on the File Income Tax Forms page
  • The form will be displayed after clicking on the relevant tile. Fill in the relevant details and click on continue
  • Fill in all the relevant details and double-check the data entered by previewing it. Next, click on “Proceed to e-Verify

You will receive a success message on your screen after the completion of the e-verification process. You will also receive a Transaction ID and Acknowledgement Receipt Number.

FAQs

What are the different e-Verification options available for me?

The following e-Verification options are available. You may choose the one which is more convenient to you:
– Aadhaar OTP
– Bank Account EVC / Demat Account
– DSC
For certain forms, e-Verification can be done only using DSC.

Can someone else upload the forms on my behalf?

Yes, in certain cases, the taxpayer can choose and authorize another person to upload forms on his or her behalf. More information on who can be represented can be found in the Authorize and Register as Representative user manual. 

How can a CA view form 15CA / 15CB filed earlier?

Users with CA login or TAN login can view Form 15CA / 15CB through the View Filed Forms service on the e-Filing portal.

How can I edit my filed form?

You can not edit the form once it is filed. However, you may file a fresh form if the time limit for the same has not expired as per the Income Tax Act / Rules, and the form filed earlier will be considered void.