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LTCG on Equity Mutual Fund

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Rakesh

Manager

57 Points Posted on 30 September 2020

I have Long Term capital Gain for sell of Mutual Fund unit that includes ELSS (after 07 year) and Equity fund (after 1 year). As i understand LTCG on MF is exempted if it is less than Rs.1.0 lac.

Do i need to include this Mutual fund details in ITR-2 or can i directly skip this details from ITR as this is tax exempted. I am salaried and for salary TDS is deducted by my Company.

If i have to show it in ITR-2 in which section of CG sheet i need to include and how the exemption will be considered for <1.0 lac capital gain during tax calculation.

Also i have sold some debt mutual fund in less than 1 year and the amount i gained filing in 'CG' sheet in 5 (ii) directly, is it correct.

Please help

Replies (2)

Quick Summary

This discussion clarifies how to report Long Term Capital Gains (LTCG) from equity mutual funds, including ELSS, in your Income Tax Return (ITR-2). Even if your LTCG is below the ₹1 lakh exemption threshold, you must declare it in Schedule 112A of ITR-2. Short Term Capital Gains (STCG) from debt mutual funds sold within a year should be reported in the STCG section of Schedule CG and will be taxed as per your income slab.

J S BHAVSAR

CONSULTING

1015 Points Posted on 02 October 2020

Applicable form for your case is ITR2 only.

No matter what is LTCG and if less than 1 lakh or more than 1 Lakh. The LTCG details of Buy Sell must reflect in Schedule 112A of ITR2.

Debt fund was sold less than 1 year, so it should be entered in Schedule CG in Section STCG and the gains here directly get added to the Income and tax payable as per slab.