If there is a discrepancy compared to the information provided by the taxpayer, any form of tax evasion can be detected. The aim is to ensure that the taxpayer reveals the benefits of these new investors in mutual funds and equities.
If mutual funds and stocks are sold at a loss or profit, the information must be included in the income tax return. The details of the transaction should be shown on the return form when filing the return for the financial year 2019-20.
The International Securities Identification Number (ICN), name, number of shares or mutual fund, sale price and purchase price are required. Details of capital gains or losses are required under Section 112A. You will need to show the details of each transaction.
Gains up to Rs 1 lakh from equities and mutual funds are tax free. Capital gains above Rs 1 lakh are taxable at 15 per cent. This is in line with the long-term capital gains tax. If the purchase and sale have taken place within a year, the short-term capital gain is liable to be taxed according to each person’s tax slab.
Capital gains are available on sale of shares and mutual funds purchased before January 31, 2018. If you want to receive this in the future, you need to show the details of the previous investment and the value as on January 31 on the return.
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By this I mean
Through this scheme, the Income Tax Department aims to identify taxpayers who do not disclose their transactions.
Along with the information provided by the taxpayer, the Income Tax Department will check the tax received from various sources, tax collected at source and statements related to financial transactions.
If there is a discrepancy compared to the information provided by the taxpayer, any form of tax evasion can be detected. The aim is to ensure that the taxpayer reveals the benefits of these new investors in mutual funds and equities.
Details received from mutual fund companies or stock broking houses cannot be uploaded in the same format. The details of each transaction must be included.
What taxpayers should do
Mutual fund investment portals and brokerage houses provide detailed statements of short- and long-term capital gains for the financial year. It provides transaction details according to the dates of purchase and sale and cost. Direct investors should check the statement issued by the fund houses and include it in the return.
The last date for filing income tax returns for the financial year 2019-20 is November 30.
