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ITR Filing For FY 2019-20 Gets Tedious: Here's Why

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While filing taxes for the FY 2019-20 (Assessment Year 2020-21), taxpayers are required to give details of each of the sale transaction if they sold shares or redeemed their mutual fund investment in the previous fiscal year when reporting their capital gains or losses. In all such instances the information to be reported includes ISIN or international securities identification number, mutual fund or scrip name, quantity, purchase and sale price as well as fair market value or FMV at the end of January 2018.

ITR Filing For FY 2019-20 Gets Tedious: Here's Why
 

For the Assessment year 2020-21, taxpayers need to mandatorily fill Schedule 112A that was introduced in AY 2019-20. But then taxpayers were given the option to provide aggregate capital gains or loss from listed shares and equity mutual funds. "Schedule 112A was introduced in AY 2019-20 as an optional schedule. Taxpayers had the alternative to fill consolidated data of capital gains or losses from listed equity shares and equity-oriented mutual funds. However, for the AY 2020-21, it is compulsory to fill schedule 112A to provide details of each transaction of sale or redemption," said Archit Gupta, founder and CEO, Cleartax.

Idea behind the Required Disclosures in ITR

In the past few years there have been new investors in both mutual fund and stocks and such that the gains from these avenues don't go unreported, taxman has mandated the reporting of each of the sale transaction. Also, the move will enable the tax department to get hold of taxpayers who don't disclose such transactions by verifying details that it gets from various sources such as from TCS or TDS statements as well as specified financial transaction statements among others and compare it with the data provided by taxpayers in their ITRs.

What Taxpayers Need To Do?

So, while you need to be accurate with your reporting, you can take help from the capital gains reports given out by the brokerages that give transaction wise details including the purchase price as well as the date. Also fund transfer agencies provide both short term and long term capital gains statement for the complete financial year that will come in handy for the taxpayer.

 

And in case you are investing in mutual funds directly, you will need to fetch details from the statements provided by those fund houses separately.

GoodReturns.in

Read more about: itr itr filing mutual funds shares
Story first published: Saturday, September 26, 2020, 12:13 [IST]
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