Reporting STCG on non equity oriented MF

To report the sale of a non-equity Nasdaq MF (acquired post-April 2023) in ITR-2, go to Schedule CG $\rightarrow$ Short-Term Capital Gains $\rightarrow$ Section 50AA (Specified Mutual Fund). Input the sale amount as the consideration value and the purchase amount as the cost of acquisition. The system will automatically compute the Short-Term Capital Loss, which can then be used to offset other capital gains or be carried forward for up to 8 years.

Oswal Nasdaq 100 FOF is a non-equity oriented fund (it invests in an overseas ETF, so it does not meet the 65% direct Indian equity threshold). Since it was purchased in 2024 and sold in 2025, held for less than 24 months, it qualifies as a SHORT-TERM capital loss.

In ITR-2, Schedule CG, go to Part B (Short-Term Capital Gains) and select B3: Capital gains on assets other than those in B1 (equity or equity MF) and B2 (special rate assets).

Fill in the columns:
- Full value of consideration: the redemption amount received
- Cost of acquisition: the original purchase amount
- Cost of improvement: 0
- Expenditure on transfer: 0 (unless you paid an exit load)

The system auto-calculates the loss as a negative figure. This short-term capital loss can be set off against any capital gain in the same year. If not fully utilized, it carries forward for UP TO 8 YEARS. File by July 31, 2026 to preserve the carry-forward.

This [capital gains guide for AY 2026-27](https://taxgarden.in/blog/capital-gains-tax-india-ltcg-stcg-ay-2026-27) covers the full Schedule CG structure for ITR-2 including the non-equity MF reporting path.