Individual Tax Filing (Income from Capital Gains or Tax Relief under Section 89)
Who Should Buy
- Salaried Employees with ESOP in domestic companies
- Salaried Employees/non salaried individuals with Capital Gains from Property/Stock
- PSU Employees with salary arrears under OROP, 6th Pay Commission
How It’s Done
- Upload documents on vault
- Review Computation Sheet
- Get ITR-V after e-filing
Documents To Be Submitted
- Form 16 from your company One form 16 or Form 16 Part A (If part B is separate)
- Additional Form 16 Additional Form 16 or if you have form 16 part B
- Form 26AS Tax Credit Statement Form 26As can be downloaded from the income tax website or your netbanking account
- Aadhaar card
- Capital Gain Statement Income proof from Mutual Funds/Trading/Sale of property
- Bank statement if interest received is above Rs. 10,000/-
Any profit or gain that arises from the sale of a ‘capital asset’ is a capital gain. This gain or profit is charged to tax in the year in which the transfer of the capital asset takes place.
No capital gains is applicable when an asset is inherited because there is no ‘sale’, only a transfer. However, if this asset is sold by the person who inherits it, capital gains tax will be applicable. The Income Tax Act has specifically exempted assets received as gifts by way of an inheritance or will.
- Here are some examples of capital assets: land, building, house property, vehicles, patents, trademarks, leasehold rights, machinery, jewellery.
- This includes rights in or in relation to an Indian company, including rights of management or control or any other right.The following are not considered capital assets:
- Any stocks or consumables or raw material held for the purpose of Business or Profession
- Personal goods such as clothes, furniture held for personal use.
- Agricultural land in India in a rural area
- A capital asset held for not more than 36 months or less is a short-term capital asset. An asset that is held for more than 36 months is a long-term capital asset.
- For example, a house property held for more than 3 years is termed as a long-term capital asset, whereas equity funds are considered short-term when held for 12 months or less. Debt Funds are long-term assets when held for more than 36 months.
- It is important to find out the specific holding period applicable to your asset because it impacts how the capital gains will be calculated.
- Some assets are considered short-term capital assets when these are held for 12 months or less. This rule is applicable if the date of transfer is after 10th July 2014, irrespective of what the date of purchase is.The assets are:
- Equity or preference shares in a company listed on a recognized stock exchange in India
- Securities (like debentures, bonds, Govt securities etc) listed on a recognized stock exchange in India
- Units of UTI, whether quoted or not
- Units of equity oriented mutual fund, whether quoted or not
- Zero coupon bonds, whether quoted or not.
- When the above listed assets are held for a period of more than 12 months, they are considered long-term capital asset