Capital Gains Reporting Equity and Debt Investments in ITR

1. Equity Capital Gains

Long-Term Capital Gains (LTCG) : 

For listed equity shares and equity-oriented mutual funds, LTCG is generally reported in three places:

A. Schedule 112A

• Report scrip-wise details
• ISIN, name of security, sale value, purchase value, FMV, and gain details

B. Schedule CG – Part B(I), Item 4

• Capital gains under Section 112A
• Auto-populated from Schedule 112A

C. Schedule CG – Part F

• Quarterly breakup of gains
• Used for advance tax and rate calculation purposes
• Helps the utility verify tax liability during different quarters

Short-Term Capital Gains (STCG):

For equity shares and equity-oriented mutual funds covered under Section 111A: Report in: Schedule CG – Part A(I), Item 3. Only consolidated figures are required here.

2. Debt Mutual Fund Capital Gains

Long-Term Capital Gains (LTCG)

Applicable where debt mutual fund units were purchased before 1 April 2023 and sold after completing the applicable long-term holding period (three years under earlier provisions). Report in: Schedule CG – Part B(I), Item 9

Short-Term Capital Gains (STCG)

Report as STCG when

Category 1

• • Debt fund units purchased before 1 April 2023
  • Sold within three years

Category 2

• • Debt fund units purchased on or after 1 April 2023
  • Taxed as short-term capital gains irrespective of holding period due to amended provisions

Report in : Schedule CG – Part A(I), Item 6

While equity LTCG reporting requires detailed disclosure through Schedule 112A, equity STCG and debt fund gains are reported directly in Schedule CG. Taxpayers should reconcile broker statements, capital gains reports, AIS, and mutual fund statements before filing the return to avoid mismatches and notices.

Reporting Equity Long-Term Capital Gains (LTCG) in ITR-2 / ITR-3

How LTCG and STCG from equity shares and equity-oriented mutual funds should be reported in the Income Tax Return 

Long-Term Capital Gains (LTCG) on Equity

For equity shares and equity mutual funds taxable U/s 112A, LTCG must be reported in three places which are here under :

1. Schedule 112A: This is the most important schedule. It requires ISIN of the security, Name of the company/mutual fund, Date of purchase, Date of sale, Sale consideration, Cost of acquisition and Fair Market Value (FMV) as on 31 January 2018 (where applicable). For investments purchased before 31 January 2018, scrip-wise reporting is required because the grandfathering provisions apply.
2. Schedule CG – Part B(I) : The capital gain calculated in Schedule 112A automatically flows into Schedule CG (Capital Gains) – Part B(I) then Verify that Sale value, Cost, Exempt portion, Taxable LTCG have been correctly populated.
3. Schedule CG – Part F : This schedule requires a quarter-wise break-up of capital gains. Periods covered are:

Quarter	Period
I	Up to 15 June
II	16 June – 15 September
III	16 September – 15 December
IV	16 December – 15 March
V	16 March – 31 March

This disclosure is important because the income tax utility calculates Advance tax liability, Interest U/ss 234B and 234C based on the quarter in which the gain arose.

Short-Term Capital Gains (STCG) on Equity :

• For equity STCG covered U/s 111A: Report under: Schedule CG – Part A(I). Only consolidated figures are generally required. No detailed scrip-wise reporting similar to Schedule 112A is required.

Reporting Shares Bought Before and After 31 January 2018 :

Highlights two situations:

• Shares/MFs Bought Before 31 January 2018: Grandfathering provisions apply. Need Actual purchase cost, FMV as on 31 January 2018, Sale consideration. The Income Tax utility calculates deemed acquisition cost.
• Shares/MFs Bought After 31 January 2018: Grandfathering provisions do not apply. Cost of acquisition is simply the actual purchase cost.

Bifurcation Before and After 23 July 2024

Highlights a separate bifurcation of gains arising from assets sold Before 23 July 2024, On or after 23 July 2024. This segregation is required under the latest ITR utility because different tax provisions/rates may apply.

Quick Reporting in ITR Guide to Capital Gains

Compliance Points for ITR Guide to Capital Gains

• Download the Capital Gains Statement from your broker or mutual fund platform.
• Reconcile gains with AIS and Form 26AS.
• Report exempt LTCG threshold benefits correctly.
• Provide Schedule 112A details for every equity transaction eligible under Section 112A.
• Include quarterly breakup in Schedule CG Part F where required.
• Verify carry-forward and set-off of capital losses before filing.
• Equity LTCG must be reported in Schedule 112A, Schedule CG Part B(I), and Schedule CG Part F.
• STCG U/s 111A is reported in Schedule CG Part A(I).
• Investments purchased before 31 January 2018 require grandfathering calculations.
• Report SIP purchases separately in Schedule 112A.
• Provide quarter-wise capital gain details in Schedule CG Part F.
• Reconcile with AIS, Broker Capital Gain Statement, Contract Notes, Demat Statement, before filing the ITR.
• Verify auto-populated values in Schedule CG after filling Schedule 112A.