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_Help 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.
