Should you disclose Long Term Capital Gain/Loss on Shares in your Income Tax Return?

While short term capital gains from equity shares are taxed @ 15%, long term capital gains are fully exempt from tax. And therefore long term capital loss on equity shares is treated as a dead loss – it cannot be set off against any gain. It is redundant from the taxation standpoint.

But should one disclose long term loss & gain on shares in the Income Tax Return? The answer is YES. It is highly advisable to disclose both long term gain and long term loss on equity shares in your income tax return lest the Assessing Officer has questions regarding the source of your receipts. Needless to say, maintaining proper records relating to your sale purchase of equity shares is a must too.

This article may be helpful to you if you have been dealing in shares and not sure whether you should pay tax – read here.

Need help with calculating your gain loss on share trading? Reach out to us and our CAs will assist you.

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