I earned some long-term capital gains (LTCG) from selling shares this year. How do I report these gains correctly while filing my Income Tax Return in India?
When you have long-term capital gains (LTCG) from selling shares, it’s important to report them properly in your ITR so the Income Tax Department has a clear record and you avoid any mismatch with your broker or Form 26AS. Here’s how you can do it step by step:
1. Identify Your ITR Form:
If you only have salary, one house property, and capital gains, you should use ITR-2.
If you also have business or professional income, then you’ll need ITR-3.
2. Report Under Schedule CG (Capital Gains):
In the ITR form, go to “Schedule CG”.
Select “Long-term capital gains on sale of equity shares/units of equity-oriented mutual funds where STT is paid” if your shares are listed.
Enter details such as:
• Sale value
• Purchase cost (with indexation, if applicable)
• Date of purchase and sale
• ISIN/code if required
3. Taxability of LTCG:
Gains up to ₹1 lakh in a financial year are exempt.
Any amount above ₹1 lakh is taxed at 10% (without indexation).
4. Cross-check with Form 26AS / AIS:
Always reconcile your share transactions with Form 26AS or Annual Information Statement (AIS) to ensure no mismatch.
For official guidance, you can check here: