Major Change in Schedule CG (Capital Gain) for returns of Assessment Year (AY) 2020-2021

Long term Capital Gain on Listed Securities on which STT has been paid was exempt under section 10 (38) of Income Tax Act (Up to Assessment Year 2018-2019)

W.E.F. Assessment Year 2019-2020, Long term Capital Gain on Listed Securities on which STT has been paid is taxable @10%.

Now we will check the details which were required in Assessment year 2019-20 for entering the details for Above mentioned Transactions, earlier we have to make our own computation and enter consolidated details in respective fields in Schedule CG.

Detailed transaction in Schedule 112A or Schedule 115AD(1)(b)(iii ) proviso were optional in Assessment year 2019-20.

Detailed transaction in Schedule 112A

Detailed transaction in Schedule 112A Image 2

In the current Assessment Year 2020-21, requirement related to above mentioned transactions has been changed significantly.

Now we have to enter each Shares detail in Schedule 112A or Schedule 115AD(1)(b)(iii ) proviso and from their these details will come Automatically in Schedule CG (Long Term Capital Gain) Point no. 5 or 8.

Shares detail in Schedule 112A

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19 Comments

  1. vijay says:

    There are serious complications in merger and acquisition cases for calculating LTCG. Gruh Finance shares were bought before 31 Jan 2018. Gruh has merged into Bandhan Bank on 17 Oct 2019 (ratio 1000 Gruh to 568 Bandhan). FMV of Gruh on 31 Jan available 2018 but Bandhan listed on March 27 2018. Transaction level LTCG calculation for Sale of Bandhan shares will need reworking cost price for equivalent number of Gruh shares for each transaction and number of transactions can run into 1000s. How does one go about this ?

  2. Ashok Rastogi says:

    I offered my listed shares on Jan2020 (acquired in 2007) through buyback option to company. The same exists has mention in 26AS form. I want to show income/gain but in form for 112A,111 and EI income there is no proper place. Kindly suggest where it an be shown.

  3. Vishwas Dabholkar says:

    I have similar problem as stated by Shri Herambh.Looking forward to your guidance on how to claim Rs. One Lakh exemption in ITR2. Thanks for your advise.

  4. Heramb says:

    Thanks for this thread. I am facing the same issue. I purchased shares before 2018 Jan and sold it aftr a year there by leading to ltcg. When I fill in the details in schedule 112a. It calculates the ltcg which is less than 1 lakh and is exempt. But somehow the schedule CG doesn’t allow the exemption of 1 lakhs and my entire amnt is considered taxable for calculations..What is the resolution for this.? Do I have to use ITR1 in that case given I dnt have a provision to report my ltcg less than 1 lakh in ITR2?.. Since if I report the details I nowehere see the sheet has embedded formula to exempt upto 1lakh ltcg. Or am I missing out something.. Can someone pls guide the way out

    Regards

  5. KAMLESH JAIN says:

    AT THE TIME OF COMPUTATION YOU COULD SEE THAT IF INCOME FROM CAPITAL GAIN IS BELOW 1 LAC THEN TAX IS NOT CALCULATED..IN COMPUTATION POINT NUMBER 15 TAXABLE FIGURE IS WITHOUT LONG TERM CAPITAL GAIN.IN POINT NUMBER 17 IT CONTAIN LTCG FIGURES FOR AMT CALCULATION

  6. ARVIND GUPTA says:

    issue about exemption of long term capital gain is very much confusing. how to claim exemption of rs.100000/-. portal is charging tax on whole of LTCG. can some one clarify?

  7. NIDHI says:

    there is no field for claiming exemption of Rs. 1 lac. So i guess the schedule of 112a is to be filled only if ltcg exceeds rs. 1lac. else show in exempt income.

  8. Chinmay Mulay says:

    Thanks for the vital information.
    I would like to clarify that Schedule 112A needs to be filled up only for those securities which were purchased prior to 1st Feb 2018.
    Long term capital gains on any securities purchased after this date would be governed by Section 112 and not 112A.
    Thanks. Stay safe.

  9. Krishnakumar says:

    Initially in AY2019-20 return format also Schedule 112A was kept compulsory. After a lot of hue and cry, it was made optional. It is practically very time consuming and laborious to fill up details of capital gains of each scrip of shares / unit of mutual funds including ISIN which is almost impossible. While the stated objective is to make filing return simple and easy, the forms are made as complex and difficult as possible in reality.

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