Scrip-wise info in ITR must only for those seeking LTCG exemption: CBDT

The earnings tax department has clarified that scrip-smart particulars of sale and order of shares

The earnings tax department has clarified that scrip-smart particulars of sale and order of shares are required to be filled in the earnings tax returns for 2020-21 assessment 12 months (AY) only by these who opted for exemption of long time period money gains tax.

It totally denied experiences that inventory or day traders are required to furnish scrip smart particulars in the return of earnings for the assessment 12 months (AY) 2020-21.

The exemption cited above was permitted less than the grandfathering clause of the Finance Act, 2018 to the gains made on outlined shares up to January 31 2018. Grandfathering refers to an exemption that will allow persons or entities to carry on with pursuits or functions that ended up authorised ahead of the implementation of new guidelines.

The Spending budget for 2018-19 had imposed a tax of ten per cent on long time period money gains exceeding Rs one lakh.

The Central Board of Immediate Taxes (CBDT) clarified that the scrip-smart particulars in the return of earnings for the assessment 12 months 2020-21 is required to be filled up only for the reporting of the long-time period money gains for these shares/units which are qualified for the reward of grandfathering.

As the grandfathering is to be permitted by evaluating distinctive values (such as price tag, sale selling price and market place selling price as on 31.01.2018) for every single share/device, there is a require to seize the scrip smart particulars for computing money gains of these shares/units, it mentioned.

Devoid of this reporting requirement, there might be circumstances where taxpayers might not assert or wrongly assert the reward of grandfathering thanks to deficiency of knowledge of the provisions.

Also, if the above calculation is not made scrip smart and taxpayer is permitted to enter the overall figures only, there will be no way for the earnings tax authorities to examine the correctness of the assert and thus quite a few returns will call for to be audited, which might direct to unnecessary grievances/rectifications at a later on phase, CBDT mentioned.

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