Compliance Portal: Tax liability for Commodity transaction

A taxpayer can receive a notice/query from the ITD regarding their commodity transactions. Thus, taxpayers who receive an SMS or any communication via call or email from ITD are likely to face some verification issues in their ITRs. Hence, taxpayers can receive the SMS for three reasons:

  1. Not filed ITR or even if the ITR is not filed in an AY where there is a potential tax liability pending.
  2. Details provided by the taxpayer and information received by the ITD don’t match for that particular assessment year.
  3. Significant transactions get reported to the Income Tax department during a financial year which is considered abnormal or out of line with the profile of the taxpayer.
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Commodity transactions are similar to Securities transactions. Transactions that get settled in an alternate method than by actual agreed upon delivery are treated as Speculative transactions. Speculative transactions are exempted from tax. however, some Speculative transactions an eligible in respect of trading in commodity derivatives carried out in a recognized association, which is chargeable to commodities transaction tax is not considered a speculative transaction.

Business Income u/s 28 to 43C and Income from capital gains u/s 45 to 55A can be levied on commodity transactions.

Taxpayers who have received any such verification issue needs to submit a response on those issues raised. Additionally, this response has to be submitted online by logging into the compliance portal.

Verification issue in the computation of Commodity transactions’ tax liability

Code Description Response
A1 Total receipts as per taxpayer pertaining to the above information Amount
A2 Less: Amount relating to another year/PAN  PAN year-wise list
A3 Less: Amount covered in other information Amount
A4 Less: Exemption/Deduction/Expenditure/ Set off of Loss Exemption/Deduction wise list
A5 Income/Gains/Loss (A1-A2-A3-A4) Computed

A1- Total receipts:

The gross value of transactions in commodities should certainly be included and a final amount needs to be mentioned.

A2- Amount relating to other year or PAN:

 If part of the receipts relates to someone else’s PAN or is considered for some other year then the List of details of such receipts are to be mentioned as per the table below:

A3- Amount repeatedly covered:

 If any amount is mistakenly covered twice then it should be mentioned under the Remarks section of the previous table. Hence, this will nullify the repeated Income/Gains/Loss covered.

A4- Exemption/Deduction/Expenditure/Set off of loss:

This section has to include gross salary and a list of all the available allowances which are exempt. Therefore, the taxpayer needs to select the correct category from the drop-down list as under:

  • Cost of acquisition u/s 48.
  • Expenditure incurred wholly and exclusively in connection with transfer u/s 48.
  • Deductions from capital gains u/s 54EC/54EE/54F.
  • Set off of Loss.
  • Others.

The details are to be submitted as per the table mentioned below:

A5- Income/Gain/Loss:

This section includes the self-computation of commodity transactions chargeable to tax A5=(A1-(A2+A3+A4)). If your income computation exceeds the minimum of 2.5 lakh then you should file your ITR.

FAQs

How will the taxpayer come to know about pending e-verification?

If there are any e-Verification issues it will certainly be pushed to the compliance portal for e-verification. Additionally, Email and SMS will be sent to the taxpayer informing about the issue raised. Then, the taxpayers need to respond to those issues raised.

Is it necessary to Compliance Portal? What happens if I don’t log in?

Yes, it is certainly advisable to log in to the compliance portal. However, if a taxpayer doesn’t login he/she will not be able to respond to the issues raised.

What is an additional query request?

Upon examining the online response submitted by the taxpayer, ITD can raise an additional query request to seek further information/clarification from the taxpayer. And thereafter, the taxpayer needs to respond to the additional query request as well.

Download Tax Profit and Loss report from HDFC Securities

HDFC Securities allows you to download your Profit and Loss Report online. It is the same as a Tax P&L report, and it is an essential document to calculate taxes on trading income. Traders have a “Trading Statement” that consists of a list of transactions undertaken by the person in various segments during a specific period. It consists of details such as:

  1. Date
  2. Time
  3. Script Name
  4. Purchase price
  5. Sale price
  6. Segment
  7. Quantity, etc.

These details then help determine the Income Tax on Trading.

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Steps to download Profit and Loss Report from HDFC Securities

  1. Log in to your HDFC Securities platform

    You can do it from here

  2. Click on Portfolio

    Next, choose Profit and Loss statement

  3. Select the Financial year, asset type and other necessary filters

    Click on Submit

  4. Click on the PDF button on the top right

    Now, your statement downloads

  5. The PDF will be downloaded on your PC

    Finally, this is what it will look like:

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FAQs

Is tax audit compulsory for F&O loss?

Tax Audit is required when the turnover of a taxpayer exceeds Rs. 1 cr in a particular Financial year. Additionally, it is also applicable if the net profit from such transactions is less than 6% / 8% of the turnover. Additionally, a tax Audit report can only be filed by a CA.

Is Trading Turnover same as Contract Turnover?

No. 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. 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.

How to download Ledger from HDFC Securities?

To download Ledger from HDFC Securities, Go to My reports > Ledger. You can view and download your ledger from there.

Download Tax Profit and Loss report from Axis Direct

Axis Direct allows you to download your Profit and Loss Report online. It is the same as a Tax P&L report, and it is an essential document to calculate taxes on trading income. Traders have a “Trading Statement” that consists of a list of transactions undertaken by the person in various segments during a specific period. It consists of details such as:

  1. Date
  2. Time
  3. Script Name
  4. Purchase price
  5. Sale price
  6. Segment
  7. Quantity, etc.

These details then help determine the Income Tax on Trading.

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Steps to download Profit and Loss Report from Axis Direct

  1. Log into your Axis Direct account

    You can do it here.

  2. Select Portfolio

    From your dashboard, under equity and derivatives

  3. Select Portfolio again

    Once the Portfolio site opens

  4. Select Reports

    Choose P&L statement

  5. Select necessary filters

    Click on Go

  6. Scroll down and click on the PDF or Excel button

    This is to to download the P&L statement

  7. The statement will be downloaded on your PC

    You can view it from there.

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FAQs

Is tax audit compulsory for F&O loss?

Tax Audit is required when the turnover of a taxpayer exceeds Rs. 1 cr in a particular Financial year. It is also applicable if the net profit from such transactions is less than 6% / 8% of the turnover. Additionally, a tax Audit report can only be filed by a CA.

Is Trading Turnover same as Contract Turnover?

No. 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. Therefore, Trading Turnover is different from Contract Turnover.

How to download Ledger from Axis Direct?

To download Ledger from Axis Direct, Go to My reports > Ledger. You can view and download your ledger from there.

Download ledger from 5Paisa

5Paisa allows you to download your Tradebook or Ledger. When a trader makes a transaction in the stock market, all the transaction details are actively recorded in the Tradebook or Ledger. This applies to all the segments i.e Equity, Futures, Options, etc. Trading ledger is also known as a trade book. Ledgers are used to prepare your Profit & Loss statement for income tax on trading of a particular Financial Year.

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Steps to download the Ledger/Tradebook from 5Paisa

  1. Log in to your 5 Paisa account

    Add your user name and password here.

  2. Click on your Profile logo

    From the dasboard

  3. Go to My reports

    From the List

  4. Select Ledger

    From the options

  5. Select the necessary filters

    Then click on Go

  6. Once you have been redirected

    You can now view your Ledger entries in detail

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FAQs

Is tax audit compulsory for F&O loss?

Tax Audit is required when the turnover of a taxpayer exceeds Rs. 1 cr in a particular Financial year or if the net profit from such transactions is less than 6% / 8% of the turnover. A tax Audit report can only be filed by a CA.

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

When an order is placed in the stock market, the details of the order, quantity of the order, price of the order and its unique order number is recorded in the order book. While when an order is executed in the stock market, its execution status and trade number get recorded in the trade book.
Most of the time, orders get executed immediately, therefore, order book and trade book reflects the same.

How to download Tax P&L from 5Paisa?

In order to download Tax P&L from 5Paisa, Log in to the portal. Go to My reports > Portfolio > My portfolio reports > Profit and loss. Once the report is visible download it by clicking on the Excel button.

Download Tax Profit and Loss report from 5Paisa

5Paisa allows you to download your Profit and Loss Report online. It is the same as a Tax P&L report, and it is an essential document to calculate taxes on trading income. Traders have a “Trading Statement” that consists of a list of transactions undertaken by the person in various segments during a specific period. It consists of details such as:

  1. Date
  2. Time
  3. Script Name
  4. Purchase price
  5. Sale price
  6. Segment
  7. Quantity, etc.

These details then help calculate income tax on trading activity.

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Steps to download Profit and Loss Report from 5Paisa

  1. Log in to your 5Paisa account

    Enter your username and password

  2. Click on your Profile logo

    On the Dashboard

  3. Go to My reports

    From the options Tab

  4. Choose Portfolio

    From the Reports’ options’

  5. Select the necessary filters

    Finally, Click on Go

  6. Click on the PDF or Excel button

    Now you can download your Profit and Loss report from 5Paisa

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[Rated 4.8 stars by customers like you]

FAQs

Is tax audit compulsory for F&O loss?

Tax Audit is required when the turnover of a taxpayer exceeds Rs. 1 cr in a particular Financial year. It is also applicable if the net profit from such transactions is less than 6% / 8% of the turnover. Additionally, a tax Audit report can only be filed by a CA.

Is Trading Turnover same as Contract Turnover?

No. 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. Therefore, Trading Turnover is different from Contract Turnover.

How to download Ledger from 5Paisa?

To download Ledger from 5Paisa, Go to My reports > Ledger. You can view and download your ledger from there.

Open a trading account online on 5Paisa

You can open a trading account online on 5Paisa. Stocks 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 in 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 5Paisa account

  1. Visit the 5Paisa website

    You can do it from here.

  2. Fill in Basic details

    -PAN Card
    -Date of Birth
    -Contact details: Mobile Number and Email Id
    -Bank details
    Click on Proceed.

  3. Fill in your personal details

    -Gender
    -Martial status
    -Name
    -Mother’s name
    -Father’s name
    -Educational qualification
    -Occupation

  4. Fill in your FATCA details

    -Nationality
    -Country of Birth
    -Source of Income
    Select the two tick boxes and click on Proceed

  5. Fill in your Address

    Click on Proceed

  6. Upload documents

    -PAN Card
    -Signature
    -Photo
    -Address Proof
    -Financial Proof
    Click on Proceed.

  7. Select a Plan as per your requirement

    Check the tick box and click on Proceed

  8. An In Person Verification is required for account opening.

    Click on Send me the link. Record a 6-second video and Click on Submit

  9. Lastly, your name and E-sign gateway will be auto-filled for you

    Click on Submit

  10. E-sign using Aadhaar

    Enter your Aadhaar number and click on send OTP

  11. Enter your OTP

    Click on verify OTP

  12. Your account opening process is now complete

    You will be able to trade shortly

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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 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.

Open a trading account online on HDFC Securities

You can open a trading account on HDFC Securities completely online. 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 on HDFC Securities

  1. Visit the HDFC Securities website.

    On the website, fill in details like:
    Name
    Email
    Mobile number
    City

  2. You will receive an OTP on that number

    Enter the OTP. Click on Open my Account.

  3. A sales representative will shortly contact you for further process.

    As seen below:

  4. The sales representative will require documents during the in person visit.

    These documents are:
    -Self-attested PAN card copy
    -Self-attested Aadhaar copy
    -Canceled cheque of the bank account you wish to link
    -Passport size photo
    -Residential address proof
    -Account holder’s signatures are also necessary

  5. Your account will become active once the documents get verified.

    This may take 5-7 working days

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Want to invest in Equity?
Need help filing your ITR? Don't worry, we can help you!
[Rated 4.8 stars by customers like you]

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.

Open a trading account online on Motilal Oswal

You can open a trading account online on Motilal Oswal. 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.

Want to invest in Equity?
Need help filing your ITR? Don't worry, we can help you!
[Rated 4.8 stars by customers like you]
Want to invest in Equity?
Need help filing your ITR? Don't worry, we can help you!
[Rated 4.8 stars by customers like you]

Steps to open a trading account online on Motilal Oswal

  1. Visit the Motilal Oswal website

    You can also do it from here.

  2. Fill in your details

    The details are:
    -Name
    -Mobile number
    -City
    Click on Let’s begin.

  3. A pop up will come asking you for your email address

    Submit your Email address for further communication. Click on Submit.

  4. Choose a Plan for as per your requirement

    Check the tick box. Click on Next.

  5. Pay the account plan charges

    Through your preferred payment mode

  6. After that, you will be required to upload your documents

    This includes:
    -One recent passport size photo
    -Cancelled cheque/ bank statement/ passbook
    -Driver’s licence/ electricity bill (not older than 2 months)
    -PAN Card

  7. Hence, the process is now complete.

    A sales representative will contact you for account activation after verifying your documents.

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Import Your Trades

File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

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.

Open a trading account online on Sharekhan

You can open a Sharekhan account completely online. 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 is considered as a Business Income.

Want to invest in Equity?
Need help filing your ITR? Don't worry, we can help you!
[Rated 4.8 stars by customers like you]
Want to invest in Equity?
Need help filing your ITR? Don't worry, we can help you!
[Rated 4.8 stars by customers like you]

Steps to open a trading account online on Sharekhan

  1. Visit the Sharekhan website

    Click on Open an account. You can access it here.

  2. Click on Open trading account

    As seen below:

  3. After that, fill in your details

    Including:
    -Name
    -Email id
    -Mobile number
    -Location
    -Pincode

  4. Next, click on Open trading account

    As seen below:

  5. Online process of account opening is completed

    Finally, the process is offline from here.

  6. A sales representative will shortly contact you

    After that, will require documents such as:
    -Self-attested PAN
    -Self-attested Aadhaar
    -Passport size photo
    -Canceled cheque or bank passbook to link with your account

  7. Finally, once your documents get processed, your account will get activated.

    You will receive a notification for the same.

Import Your Trades
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Import Your Trades

File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

FAQs

What is the difference between Trading and Demat account?

A Demat account holds securities and certificates of stocks, shares, etc. electronically while the 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. Additionally, you can 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.

Download Ledger from Kotak Securities

Kotak Securities allows you to download your Tradebook/Ledger from their trading portal. A Ledger/Tradebook contains all the transactions made in the stock market from a trading account. Therefore, this applies to all the segments i.e Equity, Futures, Options, etc. Trading ledger is the same as a Tradebook. One also uses Ledgers to prepare a Profit & Loss statement for Income tax on trading of a particular Financial Year.

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Steps to download the Ledger from Kotak Securities

  1. Log in to your Kotak Securities portal

    You can do it from here.

  2. Go to Services

    Next, click on Account services

  3. Click on View my ledger

    From the Options

  4. Select the necessary filters and Click on Go

    Click on NSE for details

  5. You can now view your Ledger Entries

    From here.

Invested in Intraday?
Need to file your ITR? Let us help you out!
[Rated 4.8 stars by customers like you]
Invested in Intraday?
Need to file your ITR? Let us help you out!
[Rated 4.8 stars by customers like you]

FAQs

Is tax audit compulsory for F&O loss?

Tax Audit is applicable if the turnover of a taxpayer exceeds Rs. 1 cr in a particular Financial year. It is also applicable if the net profit is less than 6%/8% of the turnover. Filing Tax Audit report is compulsory in order to file ITR. The tax Audit report can only be filed by a CA.

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

When an order is placed in the stock market, the details of the order, quantity of the order, price of the order and its unique order number is recorded in the order book. While when an order is executed in the stock market, its execution status and trade number get recorded in the trade book.
Most of the time, orders get executed immediately, therefore, order book and trade book reflects the same.

How to download Tax P&L from Kotak securities?

In order to download Tax P&L from Kotak securities, Log in to the portal. Go to Bill > Profit & Loss. Click on go and then download.