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How to report ltcl from mf and shares in itr2

J S BHAVSAR (CONSULTING) (1288 Points)

09 August 2017

If a particular FY has only LTCL from sale of mutual funds and/or listed securities(STT paid), where should such LTCL loss be reported in ITR2?

Schedule CG ->?

Curiously in ITR2, in the Schedule CF B4 to B6 cells are hidden. Some years back they were visible.

Schedule EI does not take negative values in reporting LTCG.

So dont know where such loss can be reported and carried forward.

Kindly help.

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11 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 09 August 2017

Originally posted by : J S BHAVSAR
	If a particular FY has only LTCL from sale of mutual funds and/or listed securities(STT paid), where should such LTCL loss be reported in ITR2? Schedule CG ->? Curiously in ITR2, in the Schedule CF B4 to B6 cells are hidden. Some years back they were visible. Schedule EI does not take negative values in reporting LTCG. So dont know where such loss can be reported and carried forward. Kindly help.

My Principal did not allow such loss to adjust against any other gains or income....... leave aside to carry forward.........

Can you specify, under which section the LTCL from STT paid equity are allowed to be carried forward?

J S BHAVSAR (CONSULTING) (1288 Points)
Replied 09 August 2017

So then question is: whether LTCL from MF and Equity should get reported on ITR2 or not?

LTCG from equity funds or equity held above 1 year are being reported in Schedule EI.

What if there is a LTCL loss after sale of equity MF or listed equity after 1 or 5 years of holding? Where should such loss get reported on ITR2; I agree we cannot adjust such loss against any head in future?

Should we should report it? If not why the tax department not want to know the long term losses incurred from MFs and equity in a FY?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 09 August 2017

" So then question is: whether LTCL from MF and Equity should get reported on ITR2 or not?
My question is what is the advantage of its reporting???????

J S BHAVSAR (CONSULTING) (1288 Points)
Replied 10 August 2017

Advantage of reporting: I am reporting to the Income Tax Department that I have incurred losses too and the losses have been realised in this financial year.

And why would ITD not want to know? Are they only sitting to know my gains?

Whom do we tell our loss incurred then?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 10 August 2017

File P& L account with Balance sheet to show the capital loss, though not required.

1 Like

J S BHAVSAR (CONSULTING) (1288 Points)
Replied 10 August 2017

Thank you. So in salaried class nothing should be reported on ITR2 for LTCL from equity MF and listed securities.

And, ITR2 only for LTCG, STCG and STCL that can be CFL.

Correct?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 11 August 2017

Correct.......

J S BHAVSAR (CONSULTING) (1288 Points)
Replied 17 August 2017

Thank you Sir. When should one use the LTCG u/s 112(1) in Schedule CG section B3?

What constitutes u/s 112(1)?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 17 August 2017

112. Tax on long-term capital gains.—(1) Where the total income of an assessee includes any income, arising from the transfer of a long-term capital asset, which is charge able under the head "Capital gains", the tax payable by the assessee on the total income shall be the aggregate of,—

(a) in the case of an individual or a Hindu undivided family,-—

(i) the amount of income-tax payable on the total income as reduced by the amount of such long-term capital gains, had the total income as so reduced been his total income; and

(ii) the amount of income-tax calculated on such long-term capital gains at the rate of twenty per cent.:

Provided that where the total income as reduced by such long-term capital gains is below the maximum amount which is not chargeable to income-tax, then, such long-term capital gains shall be reduced by the amount by which the total income as so reduced falls short of the maximum amount which is not chargeable Co income-tax and the tax on the balance of such long-term capital gains shall be computed at the rate of twenty per cent,;

(b) in the case of a company,—

(i) the amount of income-tax payable on the total income as reduced by the amount of such long-term capital gains, had the total income as so reduced been its total income; and

(ii) the amount of income-tax calculated on such long-term capital gains at the rate of forty per cent.:

Provided that in relation to long-term capital gains arising to a venture capital company from the transfer of equity shares of venture capital undertakings, the provisions of sub-clause (ii ) shall have effect as if for the. words "forty per cent.", the words "twenty per cent." had been substituted;

(i) the amount of income-tax payable on the total income as reduced by the amount of long-term capital gains, had the total income as so reduced been its total income; and

(ii) the amount of income-tax calculated on such long-term capital gains at the rate of thirty per cent.