This year I made some profit from selling shares within a year, which I understand is treated as Short-Term Capital Gains. Can you please guide me on how to show STCG correctly in ITR-2 while filing my Income Tax Return in India?
Since you earned profit from selling shares within a year, it will be treated as Short-Term Capital Gains (STCG). You need to report this income correctly while filing your ITR-2. Here’s how you can do it step by step:
1. Login to the Income Tax e-filing portal using your PAN and password.
2. Select ITR-2 for filing, as this form is meant for individuals with capital gains.
3. Go to the ‘Capital Gains’ schedule in the form.
4. Under the section for Short-Term Capital Gains (STCG), choose the relevant category:
• Section 111A → for shares or equity mutual funds sold on which STT (Securities Transaction Tax) is paid. These are taxed at 15%.
• Other STCG → for gains from debt funds, bonds, or other assets where STT is not paid. These are taxed as per your income slab.
5. Enter the details of each transaction, such as date of purchase, date of sale, cost of acquisition, sale value, and expenses (like brokerage). The system will calculate the STCG automatically.
6. If you have STCG losses, you should still report them so that they can be carried forward to future years (if ITR is filed within the due date).
7. After completing the form, verify all details and submit your return.
• For example, if you bought shares worth ₹1,00,000 and sold them within 6 months for ₹1,30,000, the profit of ₹30,000 will be shown as STCG under Section 111A and taxed at 15%.
You can read more about reporting capital gains on the official Income Tax portal here: