Most investors made profits in FY25-26.
But filing ITR for those profits?
That is where people are making costly mistakes.
Here is what you must know before filing returns this year. π§΅
But filing ITR for those profits?
That is where people are making costly mistakes.
Here is what you must know before filing returns this year. π§΅
Capital gains from shares and mutual funds are NOT auto-filled in your ITR.
Unlike your salary or bank interest β you have to manually enter every transaction.
The Income Tax Department does not do this for you.
Your broker's capital gains statement is your only reliable source.
Unlike your salary or bank interest β you have to manually enter every transaction.
The Income Tax Department does not do this for you.
Your broker's capital gains statement is your only reliable source.
The big rule that catches people off guard:
Debt mutual funds now have 2 different tax treatments β based on when you bought the units.
1. Units bought BEFORE 1 April 2023 and held 3+ years β Long-term, with indexation benefit
2. Units bought ON OR AFTER 1 April 2023 β Always short-term, taxed at your slab rate β no matter how long you hold
If you hold debt fund SIPs, you must separate old units from new units before reporting.
Debt mutual funds now have 2 different tax treatments β based on when you bought the units.
1. Units bought BEFORE 1 April 2023 and held 3+ years β Long-term, with indexation benefit
2. Units bought ON OR AFTER 1 April 2023 β Always short-term, taxed at your slab rate β no matter how long you hold
If you hold debt fund SIPs, you must separate old units from new units before reporting.
For equity shares and equity mutual funds, the rule is simpler this year.
1. Held more than 12 months β Long-term capital gains (LTCG), taxed at 12.5% above βΉ1.25 lakh
2. Held 12 months or less β Short-term capital gains (STCG), taxed at 20%
3. Shares bought BEFORE 31 January 2018 β Report ISIN-wise, grandfathering rules apply
Last year, you had to split equity gains into pre and post 23 July 2024.
That bifurcation is gone this year. Reporting is back to normal.
1. Held more than 12 months β Long-term capital gains (LTCG), taxed at 12.5% above βΉ1.25 lakh
2. Held 12 months or less β Short-term capital gains (STCG), taxed at 20%
3. Shares bought BEFORE 31 January 2018 β Report ISIN-wise, grandfathering rules apply
Last year, you had to split equity gains into pre and post 23 July 2024.
That bifurcation is gone this year. Reporting is back to normal.
One thing most people skip β reporting capital losses.
Even if you have no tax to pay now, you can carry forward losses for up to 8 years.
Those losses can be set off against future gains.
But only if you file your return on time.
Not reporting a loss = throwing away a future benefit.
After 12 years in markets, I wrote a stock market book in simple language β including how gains, returns, and CAGR actually work. βΉ249. Link in bio.
Even if you have no tax to pay now, you can carry forward losses for up to 8 years.
Those losses can be set off against future gains.
But only if you file your return on time.
Not reporting a loss = throwing away a future benefit.
After 12 years in markets, I wrote a stock market book in simple language β including how gains, returns, and CAGR actually work. βΉ249. Link in bio.
Did you participate in a company's buyback this year?
There is a specific step for you.
The cost of the shares bought back must be reported as a capital loss in Schedule CG.
The ITR form now has a dedicated field for this β most people miss it entirely.
There is a specific step for you.
The cost of the shares bought back must be reported as a capital loss in Schedule CG.
The ITR form now has a dedicated field for this β most people miss it entirely.
Capital gains are one of the last income heads where you still have to do the heavy lifting manually.
The tax rules have changed.
The forms have changed.
The responsibility has not.
Before filing, reconcile every transaction.
Your broker's capital gains statement, AIS, and ISIN details β these three are your starting points.
β»οΈ REPOST this so your investor friends don't file incorrectly this year.
πΆββοΈ FOLLOW @FunTechAcademy for market and tax content that actually helps.
JOIN OUR WHATSAPP GROUP & TELEGRAM β link in bio.
The tax rules have changed.
The forms have changed.
The responsibility has not.
Before filing, reconcile every transaction.
Your broker's capital gains statement, AIS, and ISIN details β these three are your starting points.
β»οΈ REPOST this so your investor friends don't file incorrectly this year.
πΆββοΈ FOLLOW @FunTechAcademy for market and tax content that actually helps.
JOIN OUR WHATSAPP GROUP & TELEGRAM β link in bio.
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