Capital Gains on WebNotes

How to do tax-loss harvesting on Zerodha at year-end

Tue, 12 May 2026 00:00:00 +0000

Tax-loss harvesting is the practice of selling securities that are showing an unrealised loss before the end of the financial year to realise the loss, offset it against capital gains, and reduce the overall tax liability. Under the Income Tax Act 1961 and as amended by the Finance Act 2024, capital gains tax rates on listed equity are 20% for short-term gains (section 111A) and 12.5% on LTCG above Rs 1.25 lakh (section 112A). Harvesting losses before 31 March can meaningfully reduce the taxable gain, particularly for investors who have accumulated significant unrealised losses in a falling market.

How to download Form 26AS-matching reports on Zerodha

Tue, 12 May 2026 00:00:00 +0000

Before filing an income tax return, every investor and trader should reconcile the trading data from Zerodha Console with the Annual Information Statement (AIS) and Form 26AS on the income tax portal. The AIS aggregates income data reported by all third-party filers (stock exchanges, depositories, companies, mutual funds), while Form 26AS records TDS and advance tax payments. Filing without reconciling these sources can trigger a notice under section 143(1) for mismatch. This guide covers the complete reconciliation procedure.

How to download the capital gains statement on Zerodha

Tue, 12 May 2026 00:00:00 +0000

The capital gains statement available through Zerodha Console consolidates every equity delivery sale in a financial year, computes the holding period, and maps each gain or loss to the correct section of the Income Tax Act, 1961. The statement is the primary input for Schedule CG and Schedule 112A in ITR-2 or ITR-3. This guide walks through the download procedure, explains the key columns, and flags the Finance Act 2024 rate changes that apply from 23 July 2024.

How to download the Tax P&L statement from Zerodha Console

Tue, 12 May 2026 00:00:00 +0000

The Tax P&L statement on Zerodha Console is Zerodha’s primary tax-reporting output. It aggregates all trades executed through the Zerodha platform in a given financial year and classifies them by asset class, holding period, and applicable section of the Income Tax Act, 1961. The report is designed as a starting point for populating Schedule CG (capital gains) and the business-income schedule in your ITR-2 or ITR-3.

How to file ITR-2 with Zerodha capital gains

Tue, 12 May 2026 00:00:00 +0000

ITR-2 is the income tax return form for resident individuals and Hindu Undivided Families (HUFs) who have capital gains from equity, debt, or other securities but do not carry on any business or profession. If your Zerodha account has only equity delivery trades and no F&O activity classified as business income, ITR-2 is typically the correct form. This guide walks through the end-to-end filing process for Assessment Year 2025-26 (Financial Year 2024-25) using the capital gains report downloaded from Zerodha Console.

How to use the Quicko integration on Zerodha Console

Tue, 12 May 2026 00:00:00 +0000

Zerodha Console offers a built-in link to Quicko, a tax-filing platform that imports trading data directly from Zerodha and assists in preparing and filing ITR-2 or ITR-3. For investors and traders who find the manual method of downloading the capital gains CSV and entering data into the ITR utility tedious, the Quicko integration offers a faster alternative, particularly for returns with hundreds of scrip-level entries in Schedule 112A.

Console Tax P&L statement

Mon, 11 May 2026 00:00:00 +0000

Overview

The Console Tax P&L statement is a structured profit and loss report generated by Zerodha Console for a specified financial year. Unlike the raw Tradebook, which lists individual executions chronologically, the Tax P&L statement applies the First In, First Out (FIFO) cost-allocation method mandated by the Income Tax Act, 1961 to compute realised gains and losses at the scrip level. The output is segmented by holding period (short-term versus long-term for equity) and by income head (capital gains versus business income for F&O and intraday), making it directly usable in the appropriate schedule of the ITR.

Console Tradebook

Mon, 11 May 2026 00:00:00 +0000

Overview

The Console Tradebook is a chronological record of every order that reached an executed state in a Zerodha account during a chosen date range. It is available through Zerodha Console, the broker’s back-office and reporting portal, and can be downloaded as a CSV or Excel file. The Tradebook covers all segments, equity delivery, intraday (MIS/BO/CO), futures and options (F&O), currency derivatives, and commodities, providing a single, unified view of trading activity across exchanges.

Grandfathering rule for LTCG

Mon, 11 May 2026 00:00:00 +0000

The grandfathering rule for long-term capital gains (LTCG) is a transitional provision in Section 112A of the Income Tax Act 1961 that protects equity investors from being taxed on gains that accrued before 1 February 2018. Under the rule, the cost of acquisition for computing LTCG on listed equity shares and equity-oriented mutual funds acquired before 31 January 2018 is deemed to be the higher of the actual purchase price and the fair market value (FMV) of the asset as on 31 January 2018. This has the effect of “grandfathering” all pre-February 2018 appreciation out of the taxable base.

ITR-2 (Income Tax Return)

Mon, 11 May 2026 00:00:00 +0000

ITR-2 is the Income Tax Return form prescribed by the Central Board of Direct Taxes (CBDT) for use by individuals and Hindu Undivided Families (HUFs) who have income from sources other than profits and gains from business or profession. It is the form most commonly used by salaried employees and pensioners who also have capital gains from the sale of equity shares, equity mutual funds, property, or other assets, but who do not carry on any business activity.

Tax treatment of listing-day gains

Mon, 11 May 2026 00:00:00 +0000

Listing-day gains are profits realised by investors who sell shares allotted in an initial public offering (IPO) on the very first day those shares are admitted to trading on a recognised stock exchange. The tax treatment of such gains is governed by Section 111A of the Income Tax Act 1961, which taxes short-term capital gains (STCG) on listed equity at a flat 20% (as revised by the Finance Act 2024), provided that Securities Transaction Tax (STT) has been paid on the sale.