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Share sale under 111A in ITR 2

Subodh (40 Points)

30 August 2021

When shares sale is entered under Sec 111A the value of Consideration and Acquisition is entered. It takes the Profit or Loss as Short Term. Does not ask Long Term or Short Term.

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12 Replies

Jayendra (student) (216 Points)
Replied 30 August 2021

Depends upon validation.
some software provides this facilities to ask.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 30 August 2021

Do you know sec. 111A is applicable to Short Term Capital Gains at specific rates when shares/units transferred, with STT paid.

Read the attached file.

Attached File : 1648935 20210830133438 sec 111a.pdf downloaded: 63 times

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Subodh (40 Points)
Replied 30 August 2021

Thank you @ Dirajlalji. Yes I should enter the long term gains under Sec 112A..

Subodh (40 Points)
Replied 31 August 2021

I have capital Gains on sale of shares and redemption of mutual funds. Shares have been entered under Sec112A.

For mutual funds there are Long term Gain/Losses which I have entered under 'Sale of assets other than all the above listed items'. But there it either takes Long term or Short Term but not both. Hoe to enter Short term?

There is another heading 'Amount deemed to be Long term/Short term Capital Gains'. But it does not take a negative number denoting a short term loss.

Can some one help.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 31 August 2021

Redemption of Mutual fund EQUITY units, also qualifies for Sec. 112A....

Only non-equity mutual funds' gain/loss is assessed under ST or LT assessment on its period of holding based on 36 months criteria.

Subodh (40 Points)
Replied 31 August 2021

Thanks Dhirajlalji for your prompt reply.

I have non equity, debt Mutual Funds some of which have long term losses and some with Short term losses.

'Sale of assets other than all the above listed items' takes either Long term or Short term Not both.

The Deemed one takes only positive figure and not loss.

Read more at: https://www.caclubindia.com/forum/share-sale-under-111a-in-itr-2-579948.asp

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 31 August 2021

Are you filling ITR online?

Better go with Offline, where you get choice of "whether Short Term CG or Long Term?", in the initial stage, itself.

Subodh (40 Points)
Replied 31 August 2021

I am Offline. It asks Long term/Short term but NOT accepting both...I have some mutual Funds that are long term with indexation and some that are short term. Maybe I should download a new copy, they might have rectified it. But then I will loose whatever i have filled.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 31 August 2021

Fill the data individually. You cannot fill both ST & LT data simultaneously.

Subodh (40 Points)
Replied 31 August 2021

I am filling one at a time. Once you enter the Long term Capital Gain it does not allow going to Short term. If you fill Short Term first then it does not allow Long Term.

Subodh (40 Points)
Replied 31 August 2021

I found that once you enter the Long term, do a save. Then do a Edit and change to Short term and enter the data. Save again. The LT and St both are there. Very strange way.

Thanks for handholding.

CA.Pujah (Service) (1005 Points)
Replied 01 September 2021

111A is applicable for Shot term CG and 112A for long term capital gain, both for Equity shares/ Equity oriented MFs. So, you first need to sort your redemptions as Long term/ Short term Capital Gains (presuming all are Equity oriented).

Then fill the figures separately, one for 111A and scripwise for 112A.