If you have made capital gains from salary income, business, or Futures and Options (F&O) trading in India, and you want to file an Income Tax Return (ITR), follow these detailed steps to file capital gains in your ITR:
You need to determine the type of capital gains you have made - short-term capital gains (STCG) and long-term capital gains (LTCG).
You need to calculate the capital gains you made. To calculate the STCG, you need to deduct the cost of acquisition, expenses incurred for trading, and any losses from the sale price of the F&O contracts. For LTCG, you need to deduct the indexed cost of acquisition, expenses incurred for trading, and any losses from the sale price of the F&O contracts.
You need to report the capital gains made under all the heads in the appropriate ITR form. If you have only made capital gains from F&O trading, you can use ITR-3 or ITR-4 forms. ITR-3 is for individuals and Hindu Undivided Families (HUFs) with income from business or profession, and ITR-4 is for individuals and HUFs with income from a presumptive business.
Fill out the ITR form with the required details. In the Schedule CG (Capital Gains) section of the ITR form, provide the details of the F&O contracts sold during the financial year. You need to provide details such as the name of the company or index, the number of contracts sold, the date of purchase and sale, the sale price, the cost of acquisition, the expenses incurred for trading, and the net gains or losses.
Calculate the tax payable on the capital gains trading based on your income tax slab. You can claim deductions on expenses incurred for trading and carry forward any losses from previous years. Pay the tax due before filing the ITR.
File the ITR online through the income tax e-filing website. Attach the necessary documents such as Form 16, capital gains statement, and bank statements. Once the ITR is successfully filed, you will receive an acknowledgement from the income tax department.