Income Tax Dept simplifies disclosure of LTCG from Stocks, Equity Mutual Funds Simpler, Updates ITR-5

Income Tax Budget

The Income Tax department has updated the ITR-5 in order to simplify the disclosure of Long-term capital gain from stocks, mutual funds. The Finance Bill 2018 reintroduced tax on LTCG made from listed shares and equity-oriented mutual fund.

Earlier this month, the Central Board of Direct Taxes (CBDT) had relaxed the rules on how to disclose long-term capitals gains (LTCG) from equity-oriented investments while filing income-tax returns (ITR) for assessment year 2019-20 (AY20). For this, the CBDT has now, updated the ITR-5 which is available for e-filing.

“In case of long term capital gains (LTCG) arising on sale of equity shares or unit of equity oriented fund or unit of business trust on which STT is paid, separate computation of capital gains should be made for each scrip or units of mutual fund sold during the year and aggregated amount should be provided in item No. B5(ITR 5) (in case of residents) or item No. B8(ITR5) (in case of non-residents). The Utility has been updated. Please download the latest utility available under Downloads,” the income tax department said in a statement.

Until now, taxpayers had to disclose LTCG on each equity investment separately in the ITR returns.

However, the Board had said that the taxpayers only need to disclose the net consolidated amount of LTCG from different equity-oriented investments in the ITR. This change will simplify the tax-filing process if you have earned LTCG amounting to more than Rs. 1 lakh from the equity investments in financial year 2018-19 (FY19).