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Show Capital gains while filing IT returns.

Gaurav (IT Professional) (64 Points)

12 July 2010

Hi Members,

I have a few queries regarding capital gain (arising from Long term share holding).

From what I have understood after going through various topics in this forum, Capital gains arising from selling long term share holdings (i.e. more than 12 months) are not taxable provided STT (Securities Transaction Tax) is deducted.

I did such selling in year 2009 (month Mar & Apr), however, I did not consider showing the capital gains for Mar 2009 in my Tax filing last year (AY 2009-2010). My questions as below:

1) Is it possible to show the capital gains for Mar 2009 along with this years (AY 2010-2011) return ?

2) If Yes, how ?

Regards,

Gaurav

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7 Replies

Amir (Learner) (4016 Points)
Replied 12 July 2010

Dear Sir,

In general, Income cannot be taxed in a year other than to which it pertains.

So, Shares sold in March 2009 has to be accounted for in the return for FY 2008-09. If the same has not been considered as in ur case then the return can be revised till 31.03.2011 (provided it was filed within due date) - any tax found payable shall be paid along with interest.

However, u have mentioned that those shares were older than 1 year in that case they become exempt u/s 10(38) so no need to worry if they are exempt - its not such a big thing and u can take a breath of comfort.

Gaurav (IT Professional) (64 Points)
Replied 12 July 2010

Originally posted by : Amir
	Dear Sir, In general, Income cannot be taxed in a year other than to which it pertains. So, Shares sold in March 2009 has to be accounted for in the return for FY 2008-09. If the same has not been considered as in ur case then the return can be revised till 31.03.2011 (provided it was filed within due date) - any tax found payable shall be paid along with interest. However, u have mentioned that those shares were older than 1 year in that case they become exempt u/s 10(38) so no need to worry if they are exempt - its not such a big thing and u can take a breath of comfort.

Thanks a lot Amir for your explanation, I have another follow-up question,

Q: When you say the return can be revised, do I need to file a separate return to revise the missed capital gain for Fy 2008-09 OR is there a provision to include it along with returns for FY 2009-2010 ?

Amir (Learner) (4016 Points)
Replied 12 July 2010

Sir, This revised return will be a separate return from that of FY 2009-10.

Gaurav (IT Professional) (64 Points)
Replied 12 July 2010

Hi Amir,

Thanks again, one more query:

Q: Should I use ITR-2 (for capital gains) to file the revised return for FY 2008-2009 ? Or if there is some other form ?

Amir (Learner) (4016 Points)
Replied 12 July 2010

Yes Sir, I believe ITR-2 will do...:)

Dheeraj (Learner) (1100 Points)
Replied 12 July 2010

Yes the same form will be used

& at first page choose option Revised in place of Orignal

& file the return in same manner(with correct figures) as before

srinivas (accountant) (49 Points)
Replied 26 July 2013

Sir,

My client was sale a property for the financia year 2011-2012 and he was not filed it return on that period now he was filing and how to show the saled property on it return...

pleas suggest and give one example..

Thanking you.