Reporting capital gains on equity and debt MFs? Here’s a step-by-step guide
Documents and holding duration
Since capital gains are not auto-populated, taxpayers should first gather all documents required to report the gains accurately. For listed shares and mutual funds, the broker’s or registrar’s capital gains statement should form the basis of reporting, as it captures the purchase cost, sale consideration and holding period for each transaction.
For listed shares acquired before 31 January 2018, you also need the fair market value (FMV) as on that date, wherever applicable, under the grandfathering provisions. Gautam Nayak, partner at CNK & Associates LLP, said taxpayers claiming this benefit should report the ISIN (International Securities Identification Number) of the security in the tax return. “It can be found in demat statement or in a consolidated account statement (CAS) from RTAs listing the ISIN for every fund scheme,” he added.
