ITR filling for Buyback

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Biswajit Das (Querist)
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23 July 2024 I am filling out ITR 3. I have earnings from the stock market (no intraday, no F&O), and some of these are from stock buybacks. Are these earnings (buyback) mandatory to show in the ITR? If yes, how and where should I show them?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 July 2024 Yes,
Taxable part under Schedule CG
Exempted part under Schedule EI.
No need to file ITR 3 if no business income or F&O or Intraday to be reported.

Biswajit Das

Biswajit Das (Querist)
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25 July 2024 Okay, then in Schedule CG, should I exclude buyback earnings where it needs to be mentioned in Schedule EI?

For example, suppose STCG:

- Stock A: Buy value - 100; Sell value - 150 (Normal delivery order)
- Stock B: Buy value - 80; Sell value - 120 (Buyback)

Now in Schedule CG, Section 111A:

What will be the Full value of consideration and the Cost of acquisition without indexation?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 July 2024 Cost of acquisition is purchase value
Full value of consideration is Sell Value.

Biswajit Das

Biswajit Das (Querist)
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25 July 2024 Ok, I understand it, but I am confused about the buyback shares.
As you mentioned before, buyback earnings should be included in the Exempted part under Schedule EI.
So, should I add this amount under Schedule CG or exclude it?
That's why I gave an example last time with two types of sales (Delivery & Buyback).

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 July 2024 Exempted income or the transaction is not included in schedule CG..

Biswajit Das

Biswajit Das (Querist)
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25 July 2024 Ok, then is there any problem if I fill it out like this?

For example, suppose STCG:

Stock A: Buy value - 100; Sell value - 150 (Normal delivery order)
Stock B: Buy value - 80; Sell value - 120 (Buyback)

In Schedule CG, Section 111A:
Full Value of consideration - 150 & Cost of acquisition - 100,

and in Schedule EI, 3) Other exempt income - 40

FYI, I have to file ITR 3 because I have freelance income.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 July 2024 Yes, this part is correct...

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