20% of Indian households are now investing in stock markets, signifying a rapid rise in the number of unique investors every year. While capital gains from stocks look attractive, these gains also come with associated tax liability. If you have capital gains from stock or mutual funds, you must report them in the ITR and pay taxes accordingly. This guide will help you understand how to file ITR for capital gains and which ITR to file for capital gains.

Which ITR to File for Capital Gains?

If you have income from capital gains, it can only be reported in ITR-2 and ITR-3. Let’s understand which ITR to file for capital gains and when –

If you don’t have Income from a Business/Profession

If your overall income during the year does not include income from a business/profession, you must file ITR-2 to report capital gains.

If you have Income from a Business/Profession

If your overall income includes any income from a business/profession, then you must file ITR-3.

Types of Capital Gains From Stocks and Mutual Funds

Dividend Income From Mutual Funds

If you have any dividend income from mutual funds, you must disclose it in the ‘Schedule of Other Sources’ in the ITR under the head ‘Income from Other Sources’.

Short-Term Capital Gains

If the stocks or mutual funds are sold before holding them for less than 12 months, it is known as short-term capital gains. Such gains should be reported in ‘Schedule CG’ of the ITR form.

Long-Term Capital Gains

If the stocks or mutual funds are sold after holding them for more than 12 months, it is considered a long-term capital gain. If such gains are more than Rs. 1.25 lakhs, they should be reported in Schedule 112A of the ITR Form.

How to File ITR with Capital Gains From Stock?

If you have capital gains from stock and are confused about how to file your ITR, don’t worry! With Tax2win, you can experience seamless and hassle-free ITR filing. Whether you want to file your ITR yourself or need expert assistance, we have got you covered.

File ITR Yourself

If you have some knowledge about taxes, you can consider filing your ITR yourself with Tax2win. Our AI-enabled e-filing software automatically selects the applicable ITR based on your income source and auto-populates most of the information to avoid manual entry. Moreover, with Tax2win, you can file your ITR in less than 4 minutes. Our user-friendly interface further makes it easier to complete your ITR-filing.

Get Expert Assistance

If you find taxes confusing, don’t worry! Our CA consultants are here to help you every step of the way. Right from tax planning to tax filing and notice resolution, our experts can help you with everything related to taxes. All you have to do is hire an eCA from Tax2win, share some necessary information, and let our experts handle your taxes for you.

Disclaimer: This press release may contain forward-looking statements. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans and business plans) and may change without notice. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.

Media Contact
Company Name: Tax2win
Contact Person: Rahul
Email: Send Email
City: New Delhi
Country: India
Website: https://tax2win.in/