The government has introduced the LTCG tax on equity investments for FY 2018-19 and it requires script wise details of long term capital gains in the ITR forms.
Earlier, LTCG from equity shares and equity mutual funds were not subject to the applicability of tax. However, from FY 2018-19, taxpayers are required to pay tax on LTCG @ 10 per cent tax on gains above Rs 1 lakh in a FY.
From current FY, to report the LTCG, the assessee was required to provide a separate computation of capital gains for each scrip (equity share) or units of mutual fund sold during the year and the aggregated amount should be provided.
The reporting is required to be made in Schedule 112A and 115AD(1)(iii) of long term capital gain which is to be furnished in the Income Tax Return software as per the Instructions issued by CBDT.
Due to this additional reporting in ITR, taxpayers were facing difficulty in filing ITR while collecting details of each scrip in such short period of time.
Hence, to provide relief from this difficulty, the income tax department has issued a clarification that the taxpayers have an option to fill the aggregate value of the long term capital gain or script wise details whichever is convenient for them.
This facility is now available in ITR-2, 3, 5 & 6 utilities.
This simplified process will help taxpayers to reduce the compliance burden and quick filing if Income tax returns.