You all must have heard about the infamous Section 112A and the excruciating amount of details traders need to provide during trade-wise reporting. So, while filing for capital gains with ITR 2 and ITR 3, you have to provide the following details of share sold during FY 2019-20:
1. ISIN (aka International Securities Identification Number)
2. Name of the share/unit
3. Number of shares
4. Sales-price per share/Unit
5. Cost of Acquisition
6. FMV as on 31/01/2018
7. Expenditure related to transfer
Out of all the above details, ISIN was most difficult to procure as brokerages and investment platforms wouldn’t provide their customers with the same. Yes, it was such a hassle that traders were pulling their hair out.
Now, there might be a chance that the Income Tax Department heard the cries. It came up with a major relief a few days ago – you no longer need to lookup for ISIN. Instead, the trader can use an ‘INNOTAVAILAB’ as ISIN. This can be used in place of the older/original ISIN! This will greatly reduce the stress in trade-wise reporting. Taxpayers now have to worry about one less detail in cases where the data is huge and time is less.
Hi @Niraj
LTCG has to be reported under Section 112A. ISIN details should be added for all trades entered under the Section 112A. To know more about Section 112A- Trade wise details of LTCG refer to this article.
I sold 1 company’s shares in March 2020. Some of those shares were short term (less than 1 yr) and some were long term (more than 1 yr). In this case how to add these details in section 112A?
In the utility, while filling trade details in schedule 112A of ITR-2, if the trade value is LTCL the last column is showing only zero and not as loss. How do I enter long term capital loss arising from equity shares or mutual funds in ITR-2 ?
Hey Harsh,
Income on sale of the shares that are held for less than a year is Short Term Capital Gain. You can calculate STCG as the difference of Sales Value and Buy Value of such units held for less than a year. Income on sale of the shares that are held for more than a year is Long Term Capital Gain. Such details should be entered in Schedule 112A. Enter number of units, sell value per unit, total cost of acquisition (buy value per unit * long term units) and FMV per unit. LTCG would be calculated as per the grandfathering rule.
Hey Hiral,
n the last column of Schedule 112A, the gain or loss is reflected as zero when the cost of acquisition is derived from the sales price. Here is an example to help you understand better:
Units = 10
Sales Price per unit = 50
FMV per unit = 60
Purchase Price per unit = 40
Cost of Acquistion as per grandfathering rule = 50*10 = 500
Thus, LTCG = Sales Value - Cost of Acquisition = 500 - 500 = 0
If there is a Long Term Capital Loss, it would be reflected as a negative value in Schedule 112A and total loss would be reflected in Schedule CYLA. Here is an example:
Units = 10
Sales Price per unit = 50
FMV per unit = 70
Purchase Price per unit = 60
Cost of Acquistion as per grandfathering rule = 60*10 = 600
Thus, LTCG = Sales Value - Cost of Acquisition = 500 - 600 = -100
Hope this helps
You can also import your trades onto Quicko and we will set off losses and Capital Gains/Losses for you.