How do I account for Securities Transaction Tax (STT) in Tally?

STT is not allowed as a business expense for retail investors under Section 36(1)(xv) of the Income Tax Act. It should be added to the cost of acquisition when buying shares or deducted from the sale consideration when calculating Short-Term or Long-Term Capital Gains (STCG/LTCG).

What ledger groups are used for stock trading accounts in Tally?

Stocks held for long-term investments should be grouped under 'Investments'. If you are a professional trader doing intraday or F&O, you should group your stock purchases under 'Stock-in-Hand' (Current Assets) or create an expense ledger under 'Purchase Accounts'.

Can I directly sync my Groww trade book to Tally Prime?

Groww does not have a direct API to push trades to Tally Prime. Traders must manually post vouchers from their trade book excel reports or use invoice/document capture tools to map their supporting bank statement payout transactions.

How to Post Groww Share Market Entries in TallyPrime

Groww has become one of India's largest discount brokers, facilitating millions of daily trades in equity shares, mutual funds, and F&O contracts. However, tracking these trades in your corporate or personal books of accounts poses significant bookkeeping challenges.

Every trade generates contract notes containing GST on brokerages, SEBI turnover fees, exchange transaction charges, stamp duty, and Securities Transaction Tax (STT). Reconciling these fees against bank statement transfers requires a clear double-entry bookkeeping framework.

Tally Ledgers Setup for Share Market Trades

To record Groww transactions cleanly, set up the following ledger hierarchy in TallyPrime:

Groww Brokerage Account: Create a ledger named Groww Ledger under Sundry Debtors or Current Assets. This tracks the fund balance held with the broker.
Investment Ledgers: Create individual investment accounts under the Investments group (e.g., Reliance Industries Shares, HDFC Mutual Fund A/c).
Direct / Indirect Expenses:
- Brokerage & Transaction Fees (Indirect Expenses)
- Securities Transaction Tax (STT) (Indirect Expenses / Capitalized directly to shares)
Capital Gains Accounts:
- Short-Term Capital Gains (STCG) u/s 111A (Direct/Indirect Incomes)
- Long-Term Capital Gains (LTCG) u/s 112A (Direct/Indirect Incomes)

Accounting for Equity Purchases (Journal Voucher - F7)

When you buy shares on Groww, you debit the investment assets and broker expense accounts, and credit the broker ledger.

Debit: Share Investment (e.g., Tata Motors) -- [Buy Value + Stamp Duty + STT]

Debit: Brokerage Charges (Indirect Expenses) -- [Brokerage Fee]

Debit: CGST & SGST / IGST -- [GST on Brokerage]

Credit: Groww Ledger (Broker Balance) -- [Total Debited from Groww Wallet]

Note: For retail investors, STT is added directly to the cost of acquisition of the shares instead of being charged as a separate deductible expense.

Accounting for Equity Sales & Capital Gains

When you sell shares, record the receipt of funds in the Groww ledger, clear the original asset value, and book the short-term or long-term profit/loss.

Case A: Selling with Profit (Short-Term Capital Gains)

Debit: Groww Ledger (Broker Balance) -- [Net Sale Value Received]

Debit: Brokerage Charges -- [Sell Brokerage Fee]

Credit: Share Investment (Tata Motors) -- [Original Cost Value]

Credit: Short-Term Capital Gains u/s 111A -- [Profit Amount]

Case B: Selling with Loss

Debit: Groww Ledger (Broker Balance) -- [Net Sale Value Received]

Debit: Short-Term Capital Loss u/s 111A -- [Loss Amount]

Credit: Share Investment (Tata Motors) -- [Original Cost Value]

Reconciling Groww Wallet Deposits and Withdrawals

To trade, you must transfer funds from your bank account to the Groww wallet, and vice versa. These transfers are recorded in Tally Prime using the Contra (F4) or Payment/Receipt (F5/F6) vouchers.

Transaction Type	Tally Voucher Type	Account Debited	Account Credited
Add Funds to Groww	Contra / Payment	Groww Ledger	Bank Account
Withdraw to Bank	Contra / Receipt	Bank Account	Groww Ledger

Automating Payout Bank Reconciliation

Reconciling your bank statements for dozens of wallet deposits, withdrawals, and direct brokerage payouts manually can be incredibly tedious. This is where TrulyInvoice provides a significant efficiency boost.

TrulyInvoice automatically reads your bank statements and invoices, extracts transaction details, and syncs them directly into Tally Prime for plans starting at ₹399/month.