To make reporting of Long Term Capital Gains (LTCG) from equities and equities mutual funds easier for taxpayers while filing income tax returns, the Central Board of Direct Taxes (CBDT) notified that taxpayers can either provide scrip-wise details or give self-calculated aggregate value under respective heads.
The clarification comes in the wake of confusion created amongst taxpayers while filing the ITR forms notified this financial year by the CBDT.
The CBDT while clarifying said, “Schedule 112A and 115AD(1)(iii) of long term capital gain are provided in the Income Tax Return software as per the Instructions to the Notified ITR form and based on taxpayer feedback. Taxpayers have an option to either enter the Scrip wise details of long term capital gains in Schedule 112A and 115AD(1)(iii) so that the correct values are populated in the CG Schedule or enter the self-calculated aggregate value of long term capital gains directly under respective items in schedule CG in terms with Sec 112A or 115AD(1)(iii) without entering scrip wise details. Taxpayers may exercise either option based on their convenience. This facility is now available in ITR-2, 3, 5 & 6 utilities (sic).”
Earlier, the reporting of LTCG involved both the steps of giving scrip-wise details as well providing the aggregate value. With the latest CBDT move, a taxpayer gets an option to either provide scrip-based details or self-calculated aggregate value of LTCG.
LTCG tax on equity investments was re-introduced from the FY 2018-19. LTCG from equity above Rs. 100,000 in a financial year are taxable at a rate of 10% with applicable cess.
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