Simplifying Taxes for Axis Direct Traders

Filing taxes has always been difficult for traders and investors. Well not, if you are an Axis Direct trader or investor, you are at the right place! Axis Direct has partnered with Quicko to simplify taxes for you.

After you log on to Quicko’s Tax Planner, under the Tax P&L tab, you can directly upload your Axis Direct Tax P&L Statement and get started.

Steps to Download Axis Direct Tax P&L Report

• Login to Axis Direct 
• Nevigate to Portfolio > Click on Reports > Capital gain and loss statement
• Select ‘Direct Transactions‘ & Select the year for which you want to calculate.
• Click on Go & Download the report

Choose the correct financial year and drop your Tax P&L statement to upload it on the Tax Planner App.

All your trades will be imported, categorized under the right income heads of capital gains or business income as per Income Tax Act along with turnover, P&L, LTCG, and STCG. Moreover, you can view your trades in a tradewise or scripwise manner by selecting your option to view the data. Here’s how the P&L will be classified under the income heads:

Capital Gains Head

Income Head – Capital gain covers gain or loss from the selling of Equity Shares (except intraday transactions), Mutual Funds (MF), Restricted Stock Units (RSU), Equity Traded Funds (ETFs), and Employee Stock Option Plans (ESOPs).

LTCG will be computed by applying grandfathering rule as per section 112A under the following asset types:

• Shares/ESOP/RSU
• MF/ETFs (Equity)

GrandFathering Rule for LTCG

The cost of acquisition to compute the LTCG on the sale of equity shares, equity-oriented MFs & ETFs shall be calculated by using FMV as on 31.01.2018.

Under the Equity segment – ‘Shares/ESOP/RSU’ of the Tax P&L Report, the Buy Price would be computed after considering FMV as on 31.01.2018 and the LTCG will  be calculated as a difference in sales value and buy value. While for Mutual Funds, cost is not calculated after considering FMV. However, the FMV would be separately provided for ITR reporting purposes.

Transfer Expenses under Capital gain

The transfer expenses are included in Buy Price and Sell Price under both Equity and Debt segments. 

BuyBack & Dividend Transaction

Buyback of shares and Dividend transactions would not be included under the Equity segment in the Tax P&L.

Business Income Head

• Equity Intraday:
  • Trading in the stock market on a same-day basis. Thus, it would mean buying and selling on the same day itself
• Intraday Turnover:
  • For all intraday transactions, the aggregate or absolute sum of both positive and negative differences from trades is to be considered as a turnover
• Intraday Profit/Loss:
  • Gross P&L is generally calculated by summing up sales amount reduced by buy amount
  • Net P&L = Gross P&L – Transfer expenses
  • Here, Net P&L and Gross P&L shall remain the same as transfer expenses are adjusted in buy and sale values of respective scrips or trading transactions
  • Since transfer expenses are adjusted, transfer expenses are disclosed as NIL
• Futures & Options:
  • In the Tax P&L report, F&O turnover and P&L is computed by considering the following trade segments:
    • Equity Futures & Options
    • Commodity Futures & Options 
    • Currency Futures & Options

There are two different methods to calculate turnover for Intraday and Future & Options:

1. Scripwise Method: You calculate the turnover by collating all trades on the particular script for the financial year, find the average buy/sell value, and then determine the turnover

2. Tradewise Method: You calculate the turnover by summing up the absolute value of profit and loss of every trade done during the year

You can learn more about scripwise and tradewise trading turnover calculation. 

• F&O Profit/Loss:
  • Gross P&L is generally calculated by summing up sales amount reduced by buy amount
  • Net P&L = Gross P&L – Transfer expenses
  • Here, Net P&L and Gross P&L shall remain the same as transfer expenses are adjusted in buy and sale values of respective scrips or trading transactions
  • Since, transfer expenses are adjusted, transfer expenses are disclosed as NIL

Then, proceed to the ‘Tax Planner‘ tab, where you can enter all of the important information for your case, for income situation & Advance Tax both.

Once you have filled up the necessary information on the ‘Tax Planner’ tab, navigate to ‘Tax Returns’ tab to continue  your taxes for the given assessment year. Here, review your tax planning information and click on ‘Prepare ITR‘ to prepare and file your return.

Once you have clicked on ‘Prepare ITR’, you will be redirected to the Tax Filing App on Quicko.

Know the Steps to File ITR on Quicko.

That’s it, taxes are going to be super simple for Axis Direct Traders!