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Capital gains

Tax queries 382 views 6 replies

Hi

I have Capital gains of about 10 lakhs earned by selling fully paid/bonus sharesboth ofIf Yes, which were held for over 5 years.

Please advise Is the gain tax exempt.

If Yes

Should I show this exempt income too in ITR?

If yes which ITR I should use?

Thanks and regards

Replies (6)

Since it was held for a period of 5 years, it was a long term capital asset and if STT is paid thereon then gain is exempt u/s 10(38). Exempt income is also required to be disclosed in schedule EI 

If you do not have business income, you may use ITR-2

 

 

"This Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year
2015-16 includes :-

a) Income from Salary / Pension; or
b) Income from House Property; or
c) Income from Capital Gains; or
d) Income from Other Sources (including Winning from Lottery and Income from Race Horses)."

Yes Thanks. I have done so online already.

Also I find there is a line provided in ITR 1-LINE 26-I think, which asks for income only for reporting purposes. Can we combine dividends and tax exempt capital gains and furnish here?

Mr Kumar, did u use ITR1? you were advised to use ITR 2

I used ITR 2 since i had some overseas account too to declare. But my question on line 26 of ITR 1 is to know whether capgains/dividend can be reported there.

If the exempt income  eg dividend is<5000 u can use ITR 1. But if LTCG even if exempt and <5000, u should use ITR 2(bec assesses having CG cannot use itr1)

OK understood. Thanks


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