Clarification needed on Liquidbees taxation

There are a lot of posts with completely different query about Liquidbees Taxation. Since I’m not in a position to perceive, creating this new put up.

The dividend obtained is captured in AIS assertion as DIVIDEND revenue, whereas in Zerodha TAX PL, its additionally captured in STCG. so whereas submitting ITR deal with this case. please assist.

For Instance : I purchased 1000 shares of LIQUIDBEES on 1st jan 2023 with a purchase worth of Rs.1000.On 28-03-2023 , I offered the identical with promote worth of Rs.999.99, however the portions are 1006.

In between the dividend obtained is added to the models . whole dividend added in amount are 6.890.

in AIS the dividend revenue is captured as 6890 + tax deducted and in Zerodha Tax PL , below STCG – 6890 as Revenue.

Above are pattern numbers.

Please make clear declare this whereas submitting ITR. Do I must take away STCG revenue of LIQUIDBEES ?

Hello @nmuthu

If you obtain a unit of Liquid BEES within the type of a dividend, it’s taxed below Earnings from different sources. If you promote these models, the quantity on which tax is already paid as a dividend is handled as the price of acquisition, and good points are then taxed below Earnings from Capital good points. We don’t need to pay tax on the identical revenue doubly.

Hope this helps.

i’m novice for monetary phrases. if doable might you please share with some instance the way it works and the way we have to declare the identical in ITR.

I’m following Zerodha Tax P&L. below this that is handled as STCG, whereas in AIS its captured as dividend revenue.

till the FY in context, Debt stcg is taken into account as revenue that shall be added to different revenue and taxed at common slabs as a substitute of particular slab like 10%, 15%, 20% and many others and no indexation benefitSo dividend from Fairness shares or LB dividend in that sense is similar similar to curiosity from FD.

When your FD matures, we dont tax the principal, nor the curiosity. The FD possibly rolling over longer tenure however banks report yearly curiosity paid out anyway and TDS it too, which we think about as revenue rec’d for that FY.

Within the case of LB,for 1000 models, price of acquisition is 10L@inr 1000/-Now, you bought 7 models, so price of acquisition = 0

However the dividend in money phrases has been paid as 7000 and tds at 10% is 700, so you bought 6300 in a/c.

You add 7000 to your revenue and do your taxes.

Now, for 1007 models your price of acq has turn into 10,07,000/-Even with FIFO methodology, first 1000 models price at 1000, and subsequent 7 models are actually purchased at 7000.

so subsequent time you promote 1000 at 1000, efficient achieve is 0 so no tax when promoting.Once more, when 7 are offered, price of acq is 1000, offered at 1000 so web achieve is 0.

briefly, while you promote models, you dont want to fret about taxation sooner or later interval.

n you promote models, you dont want to fret about taxation sooner or later perio

Thank You Chirag. yeah perceive now.

So all we have to think about is the Dividends which we obtained and documented in AIS.I’m not certain is there any hole in zerodha’s Tax P&L for LIQUIDBEES, which they’re bringing it below STCG when there isn’t a good points. will followup with them. Thank You.

I’m not certain is there any hole in zerodha’s Tax P&L for LIQUIDBEES, which they’re bringing it below STCG when there isn’t a good points. will followup with them. Thank You.

So zerodha tax PL is exhibiting price of acquisition has 0 for the models obtained within the type of dividend?No. This may’t be proper. Then there may be double taxation.Since I’ve by no means offered liquidbees, I by no means bought such a case.@ShubhS9 are you able to please affirm as to the way it’s proven in tax PL in console?

I’m not certain is there any hole in zerodha’s Tax P&L for LIQUIDBEES, which they’re bringing it below STCG when there isn’t a good points. will followup with them. Thank You.

Verify correctly, there is not going to be the dividend being reported and the fee is marked up.Infact every promote at inr. 0.01 can add some loss that can also be proven.

@Jason_Castelino I dont assume so, my trx’s each STCG/LTCG are calculated okay. I dont find out about his case.For all trades, web achieve is approx 0. After we purchase excessive/promote low by 1-2p lfor the fill, that loss additionally accumulates.

@ShubhS9 There’s one downside although, tax PNL sheet 2021-22 STCG(and LTCG) have particular person breakdown of the taxes in EQ sheet whereas 22-23 the whole lot is 0.@Jason_Castelino Do you see this?

Do you see this?

Unsure what you’re referring to. Are you saying there was commerce clever prices and taxes break up? From what I bear in mind, they by no means offered it that means.

Sure, in tax pnl, below Fairness sheet.

You may see closed trades, and all of the breakup within the excel sheet. Values are all 0,however when you obtain FY2021-22, they’re there. GST / stamp obligation / STT in STCG part

I assume No. below “Fairness” – Brief Time period Trades in TAX P&L, for LIQUIDBEES, the Realized P&L is exhibiting Dividend as Realized Revenue in STCG.

Even checked it in “Tradewise Exits from 2022-04-01” first tab within the TAX P&L, the dividends Purchase worth is 0 and promote worth is at dividend amount obtained quantity which then exhibiting as a realized revenue.

Unsure If I’m lacking something.

my understanding is that, if that is so Zerodha shouldn’t report this dividend achieve as a Realised revenue in STCG or LTCG . I’ve raised one other question to zerodha to examine any hole in TAX P&L for LIQUIDBEES. as soon as I get a response, will replace right here.

@ShubhS9 are you able to please affirm as to the way it’s proven in tax PL in console?

Will get again to you on this, Jason.

@ShubhS9 There’s one downside although, tax PNL sheet 2021-22 STCG(and LTCG) have particular person breakdown of the taxes in EQ sheet whereas 22-23 the whole lot is 0.@Jason_Castelino Do you see this?

Unsure what you’re referring to. Are you saying there was commerce clever prices and taxes break up? From what I bear in mind, they by no means offered it that means.

We’re engaged on including the fees. For now, when you want the small print of scripwise prices, you possibly can create a ticket at assist.zerodha.com.

ere is double taxa

Because the LIQUIDBEES are handled as Fairness in Zerodha Tax P&L, we have to take away/appropriate the entry manually in TAX P&L. so that it’s going to not get added to STCG or LTCG. in any other case we are going to find yourself in double taxation.

Acquired a affirmation from Zerodha in under thread :

So, in TAX P&L if its handled as fairness, then whereas submitting the ITR, we have to take away that realized revenue from STCG part proper. might you please affirm.

Thank You.

Hello @ShubhS9 , might you please replace on this. Once more identical situation this yr as nicely. I’ve created a assist ticket as nicely to supply appropriate assertion. Your assistance is appreciated to file ITR.

Hello @nmuthu, are you able to DM me your ticket quantity? Will get this checked.

Thank You. simply shared the ticket particulars.

I’ve the identical downside. @ShubhS9 Are you able to examine it. I’ll DM tkt quantity