Entering indian stock LTCG into ITR2 form

I was filling the income tax form ITR2 and need to fill the LTCG (long term capital gain) details there. It was not clear where (which schedule(s)) and what to put there. After little bit of googling and flipping through the ITR2 schedules, I arrived at this procedure to fill the indian stock LTCG details there.

Before I go into procedure – some background. At the onset, Instruction manual and ITR2 forms are available for download here. Instruction manual is helpful at times if you are layman, or a salaried employee trying to efile your tax returns yourselves. What you may find intimidating — is the references to sections and sub-sections and if you try to read some of those sections — for example, section 111a or 112.  You may likely find them complex to parse and time consuming to digest. Title from schedule CG – Item B – LTCG

From asset in the case of others where proviso under section 112(1) is not applicable

For a layman, this is a straight bouncer. Income tax dept. is trying every year to make it easy to fill the form for citizens. Probably, they will give better text which non-CAs (chartered accountants) can parse and not feel intimidated. I attempted to read through section 112 when trying to fill this section; I soon realized, it is not going to be easy.

Instruction manual likely needs more of How to sections. For example – How to enter short term/long term gains from indian stocks? Sure a technical manual for the professionals (read chartered accountants) is also needed.

I found this link which gave me lead into this work. (Update: I found another link which re-enforced that LTCG from indian stocks needs to be only entered in schedule EI)

The procedure:

  1. LTCG from indian stocks needs to be entered into schedule EI, not schedule CG-OS.
  2. Dividend income from indian stocks also needs to be entered into schedule EI, not schedule CG-OS.
  3. Purchase price needs to be indexed before computing the profit or loss.
  4. You need purchase price of your stocks for the computation. [I assume here that purchase date is older than a year (since LTCG)].
  5. icicidirect helped for (4)  – since they provided out of the box – an excel with profit and loss computation for the transactions. Otherwise, you will need to build an excel that may look something like this.
Stock Symbol Qty Sale Date Sale Rate Sale Value Purchase Date Purchase Rate
> 1 Year   Profit/Loss (Sold after 1 year of Holding)
abc 30 12-Apr-12 234.95 6988.14 2-Dec-10 170.1
Purchase Value Indexed purchase value Profit/Loss(-) without indexing profit/loss(-) with indexing 2010-11 CII 2012-13 CII*
5145.9 6166.39 1842.24 821.75 711 852

*CII stands for cost inflation index. A table is available in the instruction manual for this.

Hope this helps. It took me couple of hours to get to this. If you are professional CA, and find something wrong with the procedure – do drop a comment. I tried to keep it accurate to the extent I could understand.

Update: I shared ITR-2 filing for FY2013-14 (aka AY2014-15) here.

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2 Responses to Entering indian stock LTCG into ITR2 form

  1. Col Rakesh Pedram says:

    This was super useful. I wasted couple of hours and I couldnt get it. Thanks buddy

  2. Pingback: Filing your ITR for FY2013-14 (aka AY2014-15) | About Things

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