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The P&L statement, the AIS, and the process of reconciling them
Published by The Retail Trader · JUL 29, 2026 · Features
Reporting gains at the end of the year becomes easy if your records for the whole year are in order. Two documents are enough for that, and they need to be reconciled with each other.
The first source is your broker's capital gains statement, which gives the gain on each trade and a breakup by holding period.
The second source is the tax department's own consolidated statement, where your transactions have already been reported.
Mismatches often come from these causes:
• More than one broker or demat account, with one of them forgotten.
• Different treatment of the cost of acquisition after a corporate action.
• Mutual fund transactions that do not appear in the broker statement.
• Old holdings for which there is no record of the cost basis.
Downloading the broker P&L statement every year and keeping it in one folder takes two minutes. It helps most for people who switch brokers, because once the old account is closed, getting that statement becomes very difficult.
This article is for educational purposes only. It is not a buy or sell recommendation, not a claim of guaranteed returns, and not advice. Rules, rates and mechanics change from time to time at the exchanges, SEBI and the RBI, so verify every number yourself with your broker or an official source.