Your Queries – Income Tax: Give scrip-wise details in ITR to calculate long term capital gain

The resultant capital gain shall be brought to tax accordingly.

By Chirag Nangia 

I had purchased shares of one firm in 2016 and again in 2018. Now I have sold both on March 31, 2021. If I take the grandfathered price of shares held in 2016 separately with some shares of the same company purchased after 2018 and calculate long term gain/ loss, the result is long-term capital loss. If I do not consider grandfather-ed price of shares held in 2016 and calculate with shares purchased after 2018, then the result is long term gain. Can I still use the grandfathered price of date 31/3/18 or not for calculation?
—Vikas
Vide Budget 2018, long term capital gain on sale of equity shares and units of mutual fund was made taxable and it was stipulated that such gains, in excess of Rs 1 lakh would be taxed at the rate of 10%. However, in order to protect the investor interests, gains up to 31 January 2018 were grandfathered. So, grandfathering provisions apply to all the shares acquired before January 31, 2018.

For equity shares and equity mutual funds purchased on or before 31st January 2018, the Cost of Acquisition shall be higher of—(i) the cost of acquisition of such asset; and (ii) lower of—(A) fair market value of such asset; and (B) sale consideration of such asset.

The Income Tax Return form requires the taxpayers to provide scrip-wise details in schedule 112A with respect to LTCG arising from the sale of shares or units. You shall therefore have to make separate disclosure for shares/ units purchased in 2016 and 2018 and sold in 2021. The resultant capital gain shall be brought to tax accordingly.

I purchased a residential plot in 2013 and sold it in 2020. How much do I have to invest in another residence to save capital gain tax?
—Shashi J Gupta
Any gain on sale of a plot of land can be claimed as exempt under Section 54F, if net consideration is invested in purchase of one residential house property. To claim such an exemption, the new house property has to be purchased within one year before or two years after the date of transfer of capital asset or constructed within a period of three years after the date of transfer. Exemption is not permitted if you own more than one house on the date of transfer of the plot, or if you purchase/ construct another within one/ three years from transfer of original asset.

The writer is director, Nangia Andersen India. Send your queries to fepersonalfinance@expressindia.com