Why does my tax statement and P&L statement for a financial year show different figures?
The figures in your tax statements and P&L statements are calculated differently.
- The Tax Statement includes details of transactions made over financial years. When the Tax Statement for a financial year is generated, sale transactions during that year are matched with corresponding purchases (across financial years) and profits and/or losses are calculated based on the FIFO principle. For example, you sell shares (that were purchased in FY 2010-11) in FY 2021-22. Based on the FIFO principle, taxes for FY 2021-22 are calculated based on your purchase cost in FY 2010-11. For tax purposes, your statements can be accessed on MyGeojit under Statements > Capital Gains Statements.
- The P&L Statement is generated based on the selected date range. So if you select the date range to be June 2020 to December 2020, the statement will include details of all transactions carried out during this period. It does not fetch data of transactions outside this range while computing the P&L. Hence, if the purchase date is not within the range, the statement will not be able to capture such positions. To avoid this, we recommend that you select the year of opening your account as the start date while generating your P&L statement. Your P&L Statement is made available on MyGeojit under Statements > P&L Transaction.
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