Latest news with #SureshSurana
News18
3 days ago
- Business
- News18
ITR Filing FY2024-25: Sold Mutual Funds? Know How Capital Gains Tax Will Apply
Last Updated: One of the major confusions among taxpayers is regarding the capital gains tax on mutual funds. CA explains how to report them while filing ITR FY2024-25. Tax Rate Of Capital Gains From Mutual Funds: The income tax filing season for FY2024-25 (Assessment year FY 2025-26) is currently underway. The tax department has made several changes, including pre-filled and easier compliance, to make the filing process easier. The taxation terminology still confuses common taxpayers who are looking to file their ITR without the need of CA or tax expert. One of the major confusions among taxpayers is regarding the capital gains tax on mutual funds. Due to various technicalities including short-term and long-term and equity and debt, taxpayers find themselves on the brink of a steep cliff, unable to calculate the true liabilities of the capital gains from mutual funds. Prior knowledge to understand how the capital gains work on mutual funds is much better than receiving tax notices from the tax department for erroneous or faulty filing. CA Suresh Surana explains how capital gains from mutual funds are taxed and what you need to know while filing your ITR for FY2024-25. The capital gains tax on mutual funds would depend on the nature or type of mutual fund, period of holding etc. Taxation on Equity Mutual Funds An equity mutual fund is one where at least 65% of the portfolio is invested in equity shares of domestic companies. The sale of units would be categorized into long term and short term gains depending upon the period of holding of such units. The period of holding of such units would be from the date of acquisition to the sale date. If the units of listed equity mutual funds are held for more than 12 months before the sale, the gains derived would be long-term capital gains in nature otherwise, short term capital gains. The short-term capital gains would be taxed at the rate of 15% (enhanced to 20% w.e.f. 23rd July 2024) u/s 111A of the Income Tax Act ('IT Act'). • Long-Term Capital Gains (LTCG): The long-term capital gains are taxed at 10% (enhanced to 12.5% w.e.f. 23rd July 2024) u/s 112A of the IT Act provided such long-term capital gains exceed the threshold limit of Rs. 1.25 lakh in a financial year (previously Rs. 1 lakh prior to Finance (No. 2) Act 2024). Taxation on Debt Mutual Funds Similar to the taxation of Equity Mutual funds, the taxation of Debt mutual funds also depends upon whether the units are long term or short term based on their period of holding. However, in this case, the gains are categorized as short term, if the units are sold within 36 months (24 months to be considered if sold on or after 23rd July 2024), otherwise would be categorized as long term. • Short-Term Capital Gains (STCG): Short term capital gains would be taxed at the applicable marginal slab rate of the investor. • Long-Term Capital Gains (LTCG): The Long term capital gains of debt fund are taxed at 20% with indexation (12.5% without indexation w.e.f. 23rd July 2024) u/s 112 of the Act. In case of any specified mutual funds (where not more than 35% of its total proceeds is invested in equity shares of domestic companies) acquired on or after 1st April 2023, the gains derived from the said mutual funds would be deemed to be short term capital gains u/s 50AA of the IT Act and accordingly subject to tax as per the applicable marginal slab rates applicable to the investor/ taxpayer. *Note: W.e.f. 1st April 2025, 'Specified Mutual Fund" shall mean a mutual fund: (a) a Mutual Fund by whatever name called, which invests more than 65% of its total proceeds in debt and money market instruments; or (b) a fund which invests 65% or more of its total proceeds in units of a fund referred to in sub-clause (a) view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
4 days ago
- Business
- News18
ITR Filing 2025: 6 Key Reporting Changes In ITR -2 Form That Taxpayers Must Know
Last Updated: ITR Filing FY2025-26: The tax department linked the changes in the utilities forms for FY2024-25 as a major reason for the delay in the release of these utilities. ITR Filing FY2025-26: The income tax department has released the Excel-based utilities for ITR forms 2 and 3 after a delay, allowing eligible taxpayers to complete their tax duties before the deadline. The utilities for forms 1 and 4 were already released a month and a half ago. With this, all major utilities from forms 1, 2, 3 and 4 are now working on the income tax portal. The income tax department has already extended the deadline for tax filing for FY2024-25 (assessment year FY2025-26) to September 15, 2025 from July 31, 2025. The tax department linked the changes in the utilities forms for FY2024-25 as a major reason for the delay in the release of these utilities, leading to the extension of the deadline for this filing year. There are some major changes in ITR-2 form, which is applicable for those who earn a salary or have non-business or professional income as well as those with crypto, capital gains and other types of income. Let's see what are these six changes in the reporting process for the ITR-2 form. CA Suresh Surana explains to the Economic Times the six prominent changes in reporting mechanism in ITR-2 excel utility. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Economic Times
5 days ago
- Business
- Economic Times
Six changes in ITR-2 Excel Utility that all taxpayers should know before ITR filing for AY 2025-26
ET Online ITR filing for AY 2025-26: Six prominent changes in ITR-2 Excel Utility that all taxpayers including salaried individuals should note The income tax department has released the Excel based utilities of most of the income tax return (ITR) forms like ITR-1, ITR-2, ITR-3, and others. However, this year (AY 2025-26), there are six significant changes in the reporting requirements for ITR-2. This form is applicable to those taxpayers who earn a salary or have non-business or professional income, as well as those with crypto, capital gains, and other types of income. Keep reading to learn more about the six changes in the reporting process for the ITR-2 form. What are the changes in the reporting process for ITR-2? The Excel-based income tax return (ITR) utilities for ITR-2 and ITR-3 were released on July 11, 2025. Here, we have listed the changes in the reporting process for ITR-2 Excel utility. The online utility (e-filing ITR portal) is yet to be Accountant Suresh Surana explains the six prominent changes in reporting mechanism in ITR-2 excel utility: Reporting of Capital Loss on Share Buyback: A new row has been added to Schedule CG – A(A) to enable the reporting of capital losses arising from payments made by a company to its shareholders for the buyback of its own shares, in accordance with Section 68 of the Companies Act, 2013. Consequently, such capital losses are now permitted, provided the corresponding dividend income is disclosed under 'Income from Other Sources'. ITR-2 excel utility Source: ITR-2 excel utility Disclosure of Dividend Income Under Section 2(22)(f): A new row has been added in Form ITR-2 to specifically capture dividend income arising under Section 2(22)(f), i.e., proceeds received by shareholders from the buyback of shares. Also read: Making these common mistakes with ITR-2 and ITR-3 while using excel based utilities? Here's how you can fix it Bifurcation of Acquisition and Improvement Costs for Real Estate Transfers: In the ITR-2 Form, resident individuals will now need to provide separate details for the cost of acquisition and cost of improvement in respect of transfers of land and buildings executed before and after 23rd July 2024 and on or after it. This change facilitates the application of indexation benefits for such transactions. ITR-2 excel utility Source: ITR-2 excel utility Enhanced Asset and Liability reporting threshold: Taxpayers whose total income exceeds Rs 1 crore are now required to report all assets and liabilities as on the last day of the financial year. Previously, this applied to individuals whose income exceeded Rs 50 lakh. Also read: ITR-2 and ITR-3 excel utility released by Income Tax Department; Taxpayers with capital gains, crypto, other incomes can now file ITR Introduction of separate columns for capital gains reporting based on date of realization: Due to the recent changes brought about by the Finance Act 2024, effective from July 23, 2024, capital gains tax rates have changed. To help with accurate reporting and compliance, separate columns have been added to distinguish between capital gains made before and on or after July 23, 2024. This distinction is important because gains from transactions executed before this date will still be taxed at the old rates, while gains realized on or after this date will follow the revised tax rates. TDS Schedule Update: A new column has been added to Schedule TDS in Form ITR-2 for specifying the relevant Section code under which tax has been deducted at source for the assessee. Chartered Accountant Ashish Niraj, Partner, A S N & Company says: "Now, various details are required for claiming Interest on loan on House Property in the old regime in ITR 2. Previously, in the old ITR 2, only the amount was required. Similarly, various details are required for HRA now. Previously, only the amount was asked for. In Capital Gains, as rates have changed post July 23, 2024 there are two different columns. Various Details required for claiming Interest on loan on House Property in the old regime in ITR 2. Before this, under the old ITR 2, only amount was needed."Chartered Accountant Gaurav Aggarwal, Key Managerial Person (KMP), Taxcare platform, says: The Income Tax Department has introduced several important updates in the ITR-2 utility for AY 2025–26. Some of these changes are: Schedule 80C – mandatory documentation Taxpayers must now provide amount eligible for deduction under Section 80C. Similarly policy number or Document Identification Number (DIN) must be mentioned. This ensures that claims under 80C are substantiated with traceable proof. Schedule HP – disclosure for interest deduction u/s 24(b) To claim interest on home loan (u/s 24(b)), one must now enter details of the loan taken in Table 24(b). This includes lender details and loan details like Loan Account number, Sanction Date, Sanctioned Amount etc. Schedule OS – dividend disclosure for buy-back claims If a taxpayer claims buy-back loss in Schedule CG, the corresponding dividend details must be filled in Schedule OS →Sl. No. 1a(iii). N.R. 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India Today
5 days ago
- Business
- India Today
Filing ITR-2 or ITR-3? Check these common mistakes and tips to avoid them
With the excel utilities for ITR-1, ITR-2, ITR-3 and ITR-4 now released, it's vital for taxpayers to file correctly and on time. But using these excel utilities can get tricky if you're not careful. One wrong entry and you could mess up your entire tax calculation, and nobody wants a notice from the tax department, right?Take for example a recent case. A taxpayer who sold shares found that while his Long-Term Capital Gains (LTCG) showed up correctly in Schedule 112A, the main Capital Gains section showed zero tax payable. If he had filed it like that, he would have surely got a tax notice later for wrong tax DO THESE ERRORS HAPPEN?Tax experts say these issues mostly come up if you don't fill every part of the excel utility correctly. Mihir Tanna, Associate Director at S.K Patodia LLP while speaking to The Economic Times, said that people often forget to fill the last row in the Capital Gains schedule, which is row F. 'You must mention the quarter-wise details and click on 'Validate' at the top of the sheet. Without this, your capital gains and taxes may not show up correctly,' he explains. Chartered Accountant Suresh Surana added that the excel utility only shows the correct tax once you have resolved all errors. 'Unless you validate all parts and click on 'Compute Tax', the figures may appear blank or wrong. Once you upload it on the portal, the correct tax will show if all your details are right,' he said to MISTAKES YOU MUST AVOIDSo what else should you watch out for while using the excel ITR utility? Experts shared a few easy but important tips:Use the pre-filled data: CA Gaurav Aggarwal pointed out that many taxpayers lose time by entering every detail manually. He suggested logging in to the income tax portal, downloading the pre-filled JSON file, and importing it into the Excel utility to reduce simple errors, mentioned the macros in Excel: Without this, the ITR excel utility simply wouldn't work. Also, shortcuts like Ctrl+C and Ctrl+V won't work here. You have to use the F2 key to edit or every section: Each schedule (like salary, capital gains, deductions) has its own 'Validate' button. Use it. Once you check each part, then click on 'Calculate Tax'. This makes sure the entire return has no keep a copy: It is advisable to keep a backup. A single error can sometimes damage the entire Excel file, forcing taxpayers to begin again. Keeping a copy of the file or JSON midway ensures that if anything goes wrong, the work isn't taxes can feel confusing, but if you follow these simple steps, you'll avoid many headaches later. Take your time, double-check your details, and don't rush to hit that 'Submit' button. After all, nobody wants to waste time fixing tax notices later!- Ends
Time of India
5 days ago
- Business
- Time of India
Six changes in ITR-2 Excel Utility that all taxpayers should know before ITR filing for AY 2025-26
What are the changes in the reporting process for ITR-2? ET Online ITR-2 excel utility ET Online ITR-2 excel utility The income tax department has released the Excel based utilities of most of the income tax return (ITR) forms like ITR-1, ITR-2, ITR-3, and others. However, this year (AY 2025-26), there are six significant changes in the reporting requirements for ITR-2. This form is applicable to those taxpayers who earn a salary or have non-business or professional income, as well as those with crypto, capital gains, and other types of reading to learn more about the six changes in the reporting process for the ITR-2 Excel-based income tax return (ITR) utilities for ITR-2 and ITR-3 were released on July 11, 2025. Here, we have listed the changes in the reporting process for ITR-2 Excel utility. The online utility (e-filing ITR portal) is yet to be Accountant Suresh Surana explains the six prominent changes in reporting mechanism in ITR-2 excel utility:A new row has been added to Schedule CG – A(A) to enable the reporting of capital losses arising from payments made by a company to its shareholders for the buyback of its own shares, in accordance with Section 68 of the Companies Act, 2013. Consequently, such capital losses are now permitted, provided the corresponding dividend income is disclosed under 'Income from Other Sources'.Source: ITR-2 excel utilityA new row has been added in Form ITR-2 to specifically capture dividend income arising under Section 2(22)(f), i.e., proceeds received by shareholders from the buyback of read: Making these common mistakes with ITR-2 and ITR-3 while using excel based utilities? Here's how you can fix it In the ITR-2 Form, resident individuals will now need to provide separate details for the cost of acquisition and cost of improvement in respect of transfers of land and buildings executed before and after 23rd July 2024 and on or after it. This change facilitates the application of indexation benefits for such ITR-2 excel utilityTaxpayers whose total income exceeds Rs 1 crore are now required to report all assets and liabilities as on the last day of the financial year. Previously, this applied to individuals whose income exceeded Rs 50 read: ITR-2 and ITR-3 excel utility released by Income Tax Department; Taxpayers with capital gains, crypto, other incomes can now file ITR Due to the recent changes brought about by the Finance Act 2024, effective from July 23, 2024, capital gains tax rates have changed. To help with accurate reporting and compliance, separate columns have been added to distinguish between capital gains made before and on or after July 23, 2024. This distinction is important because gains from transactions executed before this date will still be taxed at the old rates, while gains realized on or after this date will follow the revised tax rates.A new column has been added to Schedule TDS in Form ITR-2 for specifying the relevant Section code under which tax has been deducted at source for the ITR 2 excel utility
