This blog delineates the steps which you can follow to easily extract the net taxable income/loss for any financial year from your Delta Exchange India account.

Steps

1. Go to Trxn. Logs (Transaction Logs)

2. Select “Asset History” from the horizontal menu if it is not selected. 

3. Mark the following check boxes in “Transaction Type” dropdown:

   1. Cashflow

   2. Liquidation Fees

   3. Trading Fees

   4. Deposit Fees

   5. Withdrawal Fees 

   6. Others (only Funding field is required from “Others”, refer Point 9 below.

4. Under the Time period dropdown select “Custom (max span 90 days)” and select the 1st 90 days of the Financial year whose tax needs to be computed. 

5. Click “Download” to get the CSV data file.

6. Repeat the above 3 times, selecting subsequent 90 days each time & downloading the file until the full duration of the financial year is covered. 

7. Now you may have up to 4 CSV files, one for each quarter. Open these CSV files using any spreadsheet software (e.g. MS Excel, Google Sheets).

8. Collate data from these 4 CSV files into a single spreadsheet in such a way that you get the running history of all your asset history transactions in the financial year in a single worksheet. Lets call it ‘Full FY Spreadsheet’

9. Apply filter on the column of Transaction Type and remove anything other than cashflow, commission, liquidation fees, trading fees, deposit fees, withdrawal fees & funding. 

10. Sum the data in following columns in the ‘Full FY Spreadsheet’

    1. Amount (this will give net realized profit/loss)

    2. GST

11. The Total Net Realized Profit/ loss in INR = 85 * (Sum of Amount column + Sum of GST column)

Recall that on Delta Exchange India, while your balances always remain in INR, the transactions are shown in USD by converting INR numbers to USD using a fixed exchange rate of 85. That is why we need to multiply the Amount and GST numbers by 85. 

Important points

• Why do we need to consider only 6 types of transactions for computing total net realized profit/ loss? This is because only these 6 types of transactions have an impact on your profit/ loss

• It is also important to understand the ‘Cashflow’ transactions. In the case of futures trading, cashflow happens whenever you close a position. That means for futures, cashflow is same as realised profit/ loss. However, in the case of options, premium is exchanged between long and short positions. This means a cashflow takes place whenever you open an options position or close it. The realised profit/ loss is the net cashflow that takes place in that trade. 

• The implication of the above point is that if you have open options positions at the closing of a financial year, you will need to make adjustments for them in computing the total realised profit/ loss. You would do this by removing the cashflow transactions that happened when you opened those positions. 

Disclaimer

This article is meant to help you extract data for the purpose of tax filing. For advice & consultation on the best way to file the tax arising from trading income please seek guidance from professional tax experts.