Income From Capital Gains

Did not sell any assets?

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Did you sell any asset (shares, property, house, land, building, etc) between the period of April 1, 2019 to March 31, 2020?

Note: Intra-day trading and F&O trading is considered as business income. Go to Business & Profession page and enter the data in the relevant fields.

Add capital gains data from Mutual Funds / Equity Shares by uploading ZERODHA, CAMS and KARVY reports.

For people with lot of share trading activity

Click here to read on what to do when you have a lot of share trading activity

If you have a lot of share trading activity (e.g. if you are a day trader with lots of activity or if you trade regularly in Futures and Options), the Income Tax Department classifies this as a Business Activity. In that case, you need to file an ITR-3 and show the Profit / Loss from the share trading under the head "Income from Business and Profession". Click here to buy the ClearTax Business Plan in case you want an tax expert to help prepare and e-file your Income Tax Return.

If you have share trading activity and you want to declare that under the head "Income from Capital Gain", you can specify just the aggregate Capital Gain / Loss value of the whole financial year. We have described the steps below.

Share trading falls in 4 separate categories:

  • Long Term STT Paid
  • Short Term STT Paid
  • Long Term STT not paid
  • Short Term STT not paid

STT paid and Not-STT paid have different taxation rate, so you have to handle each case separately.

For example: Lets say you have Short Term STT paid share sale, then you need to create one entry in Short Term STT Paid Shares:

  • If you have Net Capital Gain in the financial year in Short Term STT Paid, then just specify the profit in the Sale Price and Zero in the purchase price.
  • If you have Net Capital Loss, then just specify Zero in Sale Price and the amount of Loss as the purchase price. We will automatically make this a loss, as sale price is lower than the purchase price.

In total, you may have to make 4 such entries to cover all the cases listed above. Please contact us if you have any questions.

Need any expert assistance? Cleartax provides customized plans for our users who have capital gains from sale of stocks, mutual funds and property.