Quick Summary
There was a report in certain section of media that stock traders/day traders are required to furnish scrip wise details in the return of income for AY 2020-21. The gain from share trading in case of stock traders or day traders is generally categorised as short-term capital gains or business income. This is because their holding period of shares/units in most of the cases is less than one year which is a prerequisite for the gains to be categorised as long-term capital gains. As there is no req
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FAQ :
No, scrip-wise reporting is not required for day trading or short-term capital gains arising from share transactions in the income tax return for AY 2020-21.
Scrip-wise reporting is only required for long-term capital gains on listed shares or specified units that are eligible for the grandfathering benefit introduced by the Finance Act, 2018.
It is needed to correctly compute the long-term capital gains by comparing various values like cost, sale price, and market price as on 31.01.2018 for each specific share or unit.
The Finance Act, 2018 allowed exemption for gains made on listed shares/units up to 31.01.2018 by introducing a grandfathering mechanism for computing long-term capital gains.
For gains not eligible for grandfathering, the absence of scrip-wise reporting aims to prevent unnecessary audits and potential grievances by allowing authorities to easily cross-verify claims electronically.
No, the requirement to provide scrip-wise information for reporting capital gains is not unique to India. For example, taxpayers in the USA are required to fill in scrip-wise details in Schedule-D of Form 1040.
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