A Tax Computation Statement is a vital document that details the tax outcomes of transactions in capital markets conducted through financial intermediaries like Geojit during a specific financial year. This statement helps clients understand the tax impact of their trading activities, highlighting both profits and losses to ensure compliance with tax laws. It serves as a crucial tool for tax planning and filing, offering detailed insights into how various transactions influence tax liabilities.

The Tax Computation Statement aims to provide a comprehensive overview of trading activities, covering both short-term and long-term transactions, ensuring all necessary tax-related data is accurately compiled. By reviewing this statement, clients gain a clear understanding of their capital gains or losses, which is essential for precise reporting to tax authorities and managing tax obligations effectively.

Accessing Your Tax Computation Statement:
To view and download your Tax Computation Statement, utilize the MyGeojit platform, which offers a user-friendly interface for accessing financial statements and other key documents. The process is simple, and the statement can be obtained by following these steps:

1. Log in to MyGeojit: Start by logging into your MyGeojit account with your credentials for secure access.
2. Navigate to Statements: Select the "Statements" option from the main menu, which usually includes different types of financial statements and reports regarding your account.
3. Choose Capital Gains Statements: In the "Statements" section, locate "Capital Gains Statements" and select it to request your Tax Computation Statement.
4. Select the Desired Fiscal Year: Choose the fiscal year for which you need the Tax Computation Statement to ensure accurate tax reporting.
5. Read and Accept the Terms and Conditions: Before submitting your request, review and accept the terms and conditions associated with the Tax Computation Statement.
6. Submit and Receive Your Statement: Submit your request, and the statement will be sent to your registered email address within an hour on working days. Check your email for the document and any additional instructions or information.

Contents of the Tax Computation Statement:
The exported folder with your Tax Computation Statement typically contains three essential files:

• P&L Calculation File: Provides a detailed breakdown of profits and/or losses from sale transactions, including both short-term and long-term trades for the selected financial year.
• STT-10DB Form: Reports the Securities Transaction Tax (STT) deducted during the financial year. Note that STT charged is not considered an expense in the capital gain statement.
• Buy Not Found File: Lists transactions lacking a corresponding buy trade record. Such transactions are excluded from tax calculation and require manual updates on MyGeojit.

Important Points to Note:
When using your Tax Computation Statement, consider the following:

• Password Protection: Statements are password-protected to ensure the security and confidentiality of your financial information.
• New Format for FY 2022-2023: Starting from FY 2022-2023, the format will change. Previous years’ statements remain in the old format. The new format includes a generated Excel file with multiple sheets providing specific details.
• Acquisition Cost of Bonus Shares: In the new format, the acquisition cost of bonus shares is considered zero, affecting their cost reporting for tax purposes.
• Futures and Options Sheets: Include turnover information and separate P&L calculations for futures and options, important for understanding the financial impact and complying with tax audit requirements.

Following these guidelines and understanding your Tax Computation Statement ensures accurate tax reporting and effective management of your financial obligations, making it an integral part of the tax preparation process.