I am a new trader on your platform. Your integration with tradingview platform made me try your platform. However, having used platforms like Zerodha and Fyers, I am very disappointed with your backoffice with the PNL statement and tax reports. Without proper accounting you cannot invite serious traders on your platform.
Below are my concerns:
In PNL report, buy date and exit date are missing, cannot be used for cross verification with contract notes for auditing.
In PNL report in the charges sheet, Stamp duty is missing.
In tax PNL again buy date and sell dates are missing.
Values in PNL report and tax report do not match, because in one report they are gross values, and in other they are net values (including charges). In tax report it is mentioned that buy value and sell value includes charges. But I am not able to work out the charges included. If charges are included in the buy and sell values in tax report, then the turnover computation is wrong as per taxation practice, because they are not gross values.
The reports would be clear if you could implement the following things:
Addition of buy and sell dates, and stamp duty in PNL report.
Provision of gross values (similar to PNL report) along with buy and sell dates in the tax report.
Provision of all charges (also separately for each segment) in the tax report, so that gross profits/losses and expenses (i.e charges) can be used for tax filing without discrepancy.
Audit requirements for trading as business is minimum 2 cr
Means your profts should be more than 1 cr
All contacts come with buy and sell date with time stamp so no issues in self Audit also
@Shivakumar Whether audit is required or not is secondary. What I am pointing out is ease of use and correctness of the reports, be it for self accounting or auditing. Agree that buy and sell dates are available in contract notes. But is it practical to sit and add up values from the contract notes to get the yearly values? Wouldn’t it be practical if the tax reports include buy/sell dates and gross values as in contract notes, so that you randomly pick few dates and verify with the corresponding contract notes to determine the correctness of the tax pnl report?
Hi @Brian, Thanks for the detailed note. I usually don’t check with competition what they are offering for any products - in this case just to be sure, I did.
PNL reports on Dhan have improved significantly based on the feedback that we get from our users and many of the community members here. Date and time is missing not provided in the reports presented by one of the leading brokers you have mentioned - its format is similar to Dhan, maybe labels are different. Charges are presented on consolidated basis for the same period at the start - again I checked with other broker mentioned here - its the same as well.
For specific issues related to stamp-duty and matching between tax & p&L report, request you to drop us a line on help@dhan.co and our team at @Dhan_Cares will assist with same.
Both Zerodha and Fyers provide tradewise exit details showing dates.
Zerodha provides segement-wise, scripwise aggregates (like Dhan is providing now) in the tax report. Here date cannot be mentioned because of aggregation. But they have a sheet called tradewise exits in the same report where it includes dates. Please see the screenshot below. Most importantly the buy and sell values are exclusive of any charges (i.e gross) and hence they match in both aggregation sheet and trade-wise sheet. Also the charges are separately mentioned for each segment. This makes their report wholesome.
Fyers also provides the dates by aggregating the scrips traded daywise. Even here the buy and sell values are exclusive of charges. They also provide all the charges in detail for any period and any segment in their portal, thus making their reports complete.
Here is Fyers tax report sample screenshot:
All that Dhan has to do is provide buy and sell values exclusive of charges along with date and then provide the list of charges for each segment for the same period in your tax report. Then your PNL reports and tax reports would match. Currently in tax report the buy and sell values cannot be worked out regarding which charges are included and which not.
I will email the discrepancies to your team separately.
Why does the figures in tax pnl & Pnl report don"t match??
The charges are not available in Tax pnl report.
The charges available in normal pnl report are a combination of both equity cash transaction charges & derivative trading charges
Purchase date and sale date are required for the purpose of tax filing and it is very disappointing that Dhan has not added these even after more than one year of requesting it.
Hi @nirajk42 we have currently revamped the derivatives report (which can be download in P&L Reports). For equity. we are sharing the Capital Gain report netted off for the charges. Please share your UCC over DM incase you need any reports from the backend.
Ive downloaded both PNL report and Tax Report. The experience is still not satisfactory. Can you look at the below issues and consider them resolving if you agree these are issues
For taxation purposes, one needs P&L and Expenses both. Currently these are in 2 different reports. Cant they be in one consolidated report to make the lives of traders easier? I cant think of a valid reason to have 2 reports and information dispersed between the two. May be your backend data structure is organized in this way. It is still not a valid reason. May be Im missing something. Im sure there would be a rationale. Pls help me understand for having 2 reports especially with tax report being incomplete. For any trader, having a consolidated tax report with all the required details in it is a must. Rest other reports are for self analysis and there can be varied opinions on them on what should or should not be part of it. But tax report fields are standard and must include them in one place in order to call it a tax report. Fields like Long term income, short term income. speculative income, charges/expenses etc
In TAX report, F&O tab, intraday transactions are filed in SPECULATIVE column. As far as I know, speculative income for tax filing purposes means intraday only for stocks and not intraday for F&O because these are derivatives and income from these go into business income while filing tax. Why create unnecessary confusion by putting speculation in F&O sheet? Again correct me if im wrong in my understanding about speculative income.
In PNL report, under Equity Segment, securities are showing that are not sold means still in demat. Now I dont mind seeing securities that Im holding and not sold but If they are not yet sold, first of all they dont qualify to be in PNL report because profit/loss is not realized yet. There could be unrealized profit/loss for which you have a column but it is populated with 0s. So again Im confused what is it that you are trying to do here?
Another component required for tax filing is dividends. On webapp there is a section to show dividends received. If you already have dividend information handy can this be added to the tax report?
I can still make do with 2 reports and none of these issues are burning ones to fix but after trading experience, the tax filing experience falls apart and that is a crucial part of any traders journey
I downloaded TAX_PNL_REPORT.xls today and it is a massive improvement over the one in Jan month. This is a significant uptick. Now I can see short term, long term income neatly presented in separate sections. Same with equity and f&o tabs. I call this job well done and this definitely makes the life of tax filers easier. Thanks for doing this.
There are a minor glitches here and there.- like there is a Freeholding section which Im assuming is current holdings with unrealized pnl. But surprisingly, this list is displaying stocks that Ive exited long time back.
Also the summary values displayed PNL_Report.xls dont match with the total values in TAX_PNL_Report.xls. I wonder why there cant be a summary displayed on top in TAX_PNL_Report.xls itself but there might be some reason I believe to put this in separate file. I can live with it and Im sure you will fix these minor issues here and there before 31 Mar.
Also appreciate if you could please look at a way to display dividend information quarter wise.
@dhingrab, Thanks for your feedback. We’re currently conducting a thorough review of the data, which may result in intermittent issues for some customers for a couple of days. However, rest assured that after this recon, the data will be accurate and robust.
I am unable 2 understand how to report the 'capital gains for ITR. I have already downloaded the ‘PROFIT AND LOSS statement’ and ‘Tax report’ from dhan platform – as I did not see any drop down called – capital gains statement.
But there is no buy and sell date in any worksheet of any of these reports
PLEASE kindly stepwise tell me here – what to do in these reports – to calculate and report the capital gains - for filing the ITR
Its URGENT please, as ITR filing close date is approaching
else I will have to quit Dhan from now onwards – as this is causing much trouble
With my limited knowledge, I can tell you how I did my tax filing:
Go to ‘your Profile’.
Download the Tax Report for your required financial year.
In the Tax Report, there will be 5 sheets. Choose Tradewise Report (AGTS).
That page will list all your trades for the selected period.
It will list both buy and sell separately in different lines.
Sort the data based on Script Name.
If you haven’t bought and sold on the same date, either the buy quantity or sell quantity will be 0.
If the sell quantity is zero in a line, understand that it’s a buy order.
In the next line, there will be sell order details.
Manually create a new Excel sheet to combine data based on Script Name with Buy Details and Sell Details for sending to your auditor.
Note There might be some issues with this approach:
If you buy 10 shares of Tata Motors on January 1, then 10 more on February 1, the Tax Report shows 2 different entries. But if you sell 20 shares on March 1, for example, it will show only 1 entry, which will make it difficult to know the actual profit for the first bought 10 shares and the second bought 10 shares.
Calculations of charges will be difficult.
Missing DP charges details.
Going through the Dhan forum, I saw that this concern has been raised even a few years back, but no update yet. That’s why I do this manually instead of waiting for an update from the Dhan team. Hope this will be helpful.
Why do you need buy sell date? In these 2 reports P&L and tax report you will find the entries for short term capital gains and long term capital gains. For both you need to report only below data in ITR
Total buy value - under short term gain calculate sum of total buy if it’s not already there. Similarly calculate total for sell.
Do the same for long term
You can also enter expenses for each excluding STT charges
I don’t see the use of tradewise report because dhan already provides all the information required to be filled in ITR in these 2 xls
Or best way is to use a platform like Quicko or cleartax and connect broker dhan. Both of them can pull capital gains from tradewise report. You get the calculated ltcg stcg values from there.
