Income Tax Return filing:- Income tax department makes disclosing LTCG from stocks, equity & mutual funds simpler.

CBDT has now clarified that you only need to disclose the net consolidated amount of LTCG from different equity-oriented investments in the ITR. This change will simplify the tax-filing process if you have earned LTCG amounting to more than 1 lakh from equity investments in financial year 2018-19.


LTCG on equity

The Finance Bill 2018 reintroduced tax on LTCG made from listed shares and equity-oriented mutual funds.

Effective 1 April 2018, LTCG arising from the sale of these instruments that are held for more than 12 months are taxable at the rate of 10% (excluding surcharge and cess),

if such LTCG exceeds 1 lakh in the given FY, provided securities transaction tax (STT) has been paid both at the time of purchase and the sale of the shares or mutual funds.

Disclosing LTCG in ITR

Those who made LTCG from equity investments during FY 18-19 will be disclosing the gains for the first time in their tax returns to be filed by July this year.

According to CBDT, assessees need to compute separately LTCG arising from the sale of equity shares or units of equity-oriented mutual funds or units of business trusts, on which STT has been paid, but mention the aggregate amount in the ITR.


Where to disclose

ITR-2 and ITR-3 forms have been amended and updated to accommodate the changes, according to CBDT.

You need to disclose the aggregate LTCG or LTCL in the specified columns and spaces provided in these ITR forms.

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