ITR for Capital Gain on Sale of Shares/Mutual Funds

Capital Gain is the profit realized from the sale of a capital asset, such as a stock, bond or property.

Capital Loss is the loss realized from the sale of a capital asset, such as a stock, bond or property.

A capital asset is a property or an investment that an individual or business entity owns and holds for the purpose of generating income or capital appreciation. Capital assets can include stocks, bonds, property, jewelry, collectibles, and other investment vehicles.

Long-term capital gains are gains on assets held for more than 12 months. Short-term capital gains are gains on assets held for 12 months or less.

Individuals, Hindu Undivided Families (HUFs), Firms, Association of Persons (AOPs), Body of Individuals (BOIs), Companies, and other entities who have sold a capital asset and realized a capital gain are required to file an Income Tax Return (ITR) to report the capital gain.

For a salaried individual, the due date for filing Income Tax Return (ITR) is usually July 31st of each financial year. For a Business or Profession carried by Individual/ HUF / Partnership Firms/ LLPs (whose books of accounts are not reuired to be Audited), the due date for filing Income Tax Return (ITR) is usually July 31st of each financial year. For a Business or Profession carried by Individual/ HUF / Partnership Firms/ LLPs/ (whose books of accounts are required to be Audited), the due date for filing Income Tax Return (ITR) is usually October 31st of each financial year. For a Business or Profession carried by Companies, the due date for filing Income Tax Return (ITR) is usually October 31st of each financial year, irrespective of its books of accounts are required to be Audited or not. Note: It is important to note that the due date may be extended by the tax authorities under certain circumstances.

Yes, if you have a capital loss , you still need to file an Income Tax Return (ITR) on or before due dates. Capital Losses be carried forward and set off against future Capital Gain.If return is filed after due date, carry forward benefit will not be available.

If an individual does not file their Income Tax Return (ITR) after realizing a capital gain, they may face the following consequences: 1) Penalty up to INR 5,000 under section 271F of the Income Tax Act. 2) Interest on Unpaid Taxes: If there is a tax liability, the individual may be charged interest on the unpaid taxes, calculated from the due date till the date of payment. 3) Disqualification from Tax Benefits: Failing to file an ITR can result in disqualification from claiming tax benefits and exemptions. 4) Legal Action: In severe cases, non-filing of ITR can result in legal action by the Income Tax Department.

Yes, you can claim tax refunds if you have paid more tax than your liability by filing an income tax return (ITR).

Yes, capital losses can offset capital gains.This means that if an individual/ HUF or other entities has realized a capital loss from selling one asset, they can use that loss to offset a capital gain from selling another asset, reducing the overall tax owed on the capital gains.

For Individual or HUF: If total income upto Rs. 2,50,000: Nil If total income between Rs. 2,50,000 & Rs. 5Lakhs: Rs. 1,000 If total income above Rs. 5 Lakhs: Rs. 5,000For Companies/LLP/Firm: If total income upto Rs. 5 Lakhs: Rs. 1,000 If total income above Rs. 5 Lakhs: Rs. 5,000