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ITR FOR CAPITAL GAIN

ITR for Capital Gain

Every individual needs to file their taxes in the specified IT return form. Taxpayers need to file ITR for capital gain by submitting ITR Form 2 to the Income Tax Department. However, if your total income for a financial year includes income generated from business or profession, you will be required to file ITR-3 as the income tax return for capital gains. If your income source is salary, sale of foreign assets or property, etc., you are eligible to file ITR-2. Read on to learn how to file the capital gain ITR form.

Any profit or gain that arises from the sale of a ‘capital asset’ is known as ‘income from capital gains’. Such capital gains are taxable in the year in which the transfer of the capital asset takes place. This is called capital gains tax. There are two types of Capital Gains: short-term capital gains (STCG) and long-term capital gains(LTCG).

There are two types of Capital Gains: short-term capital gains (STCG) and long-term capital gains(LTCG). Investment in a house property is one of the most sought out investments primarily because you get to own a house. While others may invest with the intention of earning a profit upon selling the property in the future.

SERVICES INCLUDE

In the case where a resident individual earns capital gains or losses during a financial year, it can only be reported in Form ITR-2 and ITR-3. .

Any salaried person who falls within the taxable salary range is eligible to file returns in ITR-1 and such taxpayers will also have to choose ITR-2 to report the capital gains.

A taxpayer will be needed to file Form ITR 3 if he makes income from business or any profession. However, the ITR-2 Form will be filed by a taxpayer (Individual and Hindu Undivided Families) if he makes income from sources other than profession or business.

Resident individuals generating income from the assets, capital gains, jobs, or any other sources, and also making profit or loss from purchasing and sales of goods, can file Form ITR 2.

Documents Required For Filing Capital Gain ITR Form:

For Sale of Immovable Property :

Sales and purchase deeds, improvement cost details, transfer expenses showing the sale value, purchase value and any cost of improvement.

Full Address of the Property.

Details of the buyer, like PAN and Aadhaar.

Necessary supporting document if you claiming exemption u/s 54 or 54EC.

For Sale of Mutual funds or Equity shares:

For the Sale of Mutual funds, you can generate consolidated capital gain statements from CAMs and Kfintech..

For the Sale of Equity shares, you can check with your broker for a capital gain statement or Tax P&L.

For any other types of capital, you must have a document showing the sale consideration and the purchase cost details as required.

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