Generating reports for taxation

In order to make life simple for our customers when it comes time to file income tax returns, Upstox provides reports for both the previous and current financials years in terms of how much profit and loss the customers incurred. The reports help our customers compute their tax liabilities, and if need be, the adjustments required for carry forward profit/losses. We make it easy by providing two options for downloading reports: in Microsoft Excel format or in PDF format. Here are the easy steps you need to follow to generate your taxation reports!

Taxation: Reports Generation


  1. Login to Keystone
  2. Click on Bill – Profit and Loss P&L_1.jpg
  3. Select Start Date and End Date P&L_2.jpg
  4. Click on Go P&L_3.jpg

Great! Now what?

Now that you have downloaded your reports, you will be able to see many things such as a specific year’s speculative Profit/Loss.

Terms to Know

Speculative Income

Any income that is generated through intra-day trading is considered speculative income, and therefore is taxed as speculative income. Speculation losses can only be set off against speculative gains, and non speculation losses can only be set off against short or long term capital gains. Any income generated through stock derivatives is not specified as speculative trading. Therefore, profit generated from a non-speculative business is taxable as business income, not speculative income.

Short Term and Long Term Capital Gain (Cash Market)

A share if sold within 1 year of buying will be taxed as Short Term Capital Gain. If you sell a share after holding it for more than a year, it will be treated as a Long Term Capital Gain. For example if you bought 100 shares of Company “X” on 15th March 2008 and sold them on 1st March 2009 the period of your holding is less than 1 year and hence it would qualify for Short Term Capital Gain. If you sell these shares after 15th March 2009, i.e., after holding it for more than one year, it will qualify as a Long Term Capital Gain. You are liable to pay taxes on Net Short Term Capital Gains. This means that If you have earned Rs. 5,000 on trading in Company “X” and booked a loss of Rs. 3,000 on sales of shares of company “Y” (both should qualify as short term capital transaction), then your tax liability would be calculated on Rs. 2,000 i.e., 15% of Rs. 2,000. In other words, Short Term Capital Gain can be offset by Short Term Capital Loss. However , you cannot offset a Short Term Capital Gain with Long Term Capital Loss. Bonus Shares should be considered at Nil Cost of acquisition while calculating the gains. The period of holding should be computed from date of issue of Bonus shares. You can claim cost of acquiring shares such as Brokerage charges, Demat charges while calculating capital gains.

Short Term and Long Term Capital Gain (Futures and Options)

The most common issue that arises in taxation of derivatives transactions is that of whether derivatives transactions are always to be regarded as business transactions. It is true that in most cases, derivatives transactions would be regarded as business transactions on account of the following factors:

  1. The purpose behind entering into most derivatives transactions is to profit from short-term fluctuations in market prices.
  2. The period of any derivatives transaction cannot exceed 3 months, and such transactions are invariably short-term transactions.
  3. Often, the sheer volume of trades in derivatives transactions entered into by a person on an ongoing basis indicates that it amounts to a business.
  4. Many people who trade in derivatives may be associated with the stock market in some way or the other – they may be stock brokers or their employees, or regular day traders. For such people, derivatives’ trading is an extension of their normal business activities.

So Income from Derivatives income is considered as a Short Term Capital Gain — people can adjust their Short Term Capital Loss against Short Term Capital Gain and pay the tax on the netted income.

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