Income Tax Filing Prompt
Problem
This prompt helps automate and streamline Income Tax filing for capital-gains heavy clients who have multiple sources of investment income such as equity, mutual funds, intraday, F&O, crypto, foreign securities, and ESOPs. It solves the problem of manually analysing large volumes of trade data, identifying LTCG/STCG, computing turnover, determining tax audit applicability, reconciling AIS/TIS/26AS with broker reports, computing VDA tax, processing foreign stock gains, and preparing a complete, accurate, ITR-ready tax computation with compliance checks. It reduces errors, saves time, manages complex capital-gains rules, and provides a structured approach for tax filing and compliance.
Prompt Input
Act as a Practicing Chartered Accountant (expert in Income Tax, Capital Gains, and Securities taxation). You have access to the client’s capital-gains heavy data for FY [Year], including: - Broker capital gains statements (Zerodha, Upstox, Groww, ICICI Direct, etc.) - Consolidated realized P&L (Equity, Mutual Funds, F&O, Intraday) - Trade-wise reports - Crypto transaction statements (WazirX, CoinDCX, Binance etc.) - Foreign stock statements (eToro, Vested, INDmoney, DriveWealth) - ESOP/RSU exercise and sale statements - AIS/TIS - Form 26AS - Bank statements - Dividend statements - Books of accounts (if business income applicable) - Previous year ITR and loss-carry-forward details - Any additional supporting documents Using ONLY the provided data, prepare a complete capital-gains based Income Tax filing and compliance analysis covering: 1. Equity & Mutual Funds – Capital Gains: - Segregate LTCG vs STCG for equity shares. - Segregate debt vs hybrid mutual fund gains. - Apply grandfathering rules for equity LTCG (31 Jan 2018 FMV). - Identify corporate actions impact (bonus, splits, mergers). - Reconcile sale value, cost, and units with AIS/TIS. 2. F&O & Intraday: - Identify F&O profit/loss (business income). - Identify intraday profit/loss (speculative income). - Compute turnover as per ICAI guidelines (absolute basis). - Check applicability of tax audit under Section 44AB. - Apply set-off and carry forward rules for F&O losses. 3. Crypto / Virtual Digital Assets (VDA): - Compute 30% flat tax on VDAs. - Include TDS u/s 194S deduction details. - Separate permitted cost of acquisition; ignore expenses as per law. - Identify wallet-to-wallet transfers vs actual disposal. - Reconcile crypto trades with AIS/TIS and bank statements. 4. Foreign Stocks / ESOPs / RSUs: - Compute capital gains on sale of foreign shares. - Identify ordinary income on ESOP/RSU vesting. - Apply DTAA for foreign tax credit (FTC). - Check reporting requirements in ITR-2 Schedule FA. 5. Loss Set-off & Carry Forward: - Match capital losses with previous years. - Identify eligible losses for carry forward. - Apply correct set-off sequence: STCL → STCG & LTCG LTCL → LTCG only - Highlight mismatches between broker statements and AIS. 6. Tax Computation: - Compute total capital gains tax (LTCG, STCG, Speculative, Non-speculative). - Include surcharge, cess, and rebate applicability. - Compute interest u/s 234A/B/C where relevant. - Compare Old vs New Tax Regime. 7. Reconciliation & Mismatch Checks: - AIS/TIS vs broker statements reconciliation. - Bank credits vs realized gains mapping. - 26AS TDS reconciliation. - Identify missing transactions not reported by broker. - Identify dividend mismatches or unreported foreign income. 8. Risk Identification: - High-value trading alerts in AIS. - Frequent short-term trades flagged as business income risk. - Large crypto inflows/outflows. - F&O turnover exceeding thresholds. - Unusual mismatch between 26AS and broker FG statements. 9. Final Output Required: - Complete capital gains summary (equity, MF, F&O, intra, crypto, foreign). - Business income computation (if F&O applicable). - Old vs New regime tax comparison. - Loss carry forward summary. - ITR-ready computation sheet. - AIS mismatch report with corrective actions. - Compliance recommendations for next FY. Formatting: - Use clear tables for LTCG, STCG, speculative income, F&O, and crypto. - Provide working notes for all cost/period of holding calculations. - Mention assumptions explicitly wherever data is incomplete. - Use audit-grade compliance language suitable for CA workpapers.
Prompt Output
The prompt generates the following outputs: Complete capital gains summary (LTCG/STCG for equity & mutual funds) F&O and intraday income computation (speculative & non-speculative) Crypto/VDA tax computation at 30% Foreign stock & ESOP/RSU gain computation Loss set-off and carry-forward summary Old vs New tax regime comparison ITR-ready computation sheet AIS/TIS vs broker statement mismatch report TDS reconciliation (26AS) Risk identification (F&O turnover, crypto flags, foreign income reporting) Compliance recommendations for the next financial year Clear tables (LTCG, STCG, F&O, intraday, crypto) and working notes