Which ITR form should I file for capital gains - ITR-2 or ITR-3?

ITR-2 is mandatory if you have capital gains and no business income. This covers most individual investors with equity, mutual funds, property, crypto, and ESOP exits. ITR-3 is required if you have business or professional income alongside capital gains - F-and-O trading, intraday equity, proprietary business, or partnership share. ITR-1 is not allowed if your LTCG under Section 112A exceeds Rs 1.25 lakh or you have any other capital gains.

What are the new STCG and LTCG rates from 23 July 2024?

STCG on listed equity, equity mutual funds, and business trust units (Section 111A): 20 percent. LTCG on the same assets (Section 112A): 12.5 percent on gains exceeding Rs 1.25 lakh per FY. LTCG on other assets including property, gold, unlisted shares (Section 112): 12.5 percent without indexation. Plus 4 percent cess. Surcharge capped at 15 percent. Budget 2025 and Budget 2026 made no changes.

How does pre-2018 equity grandfathering work under Section 112A?

For listed equity shares and equity-oriented mutual fund units acquired before 1 February 2018, the cost of acquisition is the higher of actual purchase price or fair market value on 31 January 2018, capped at the actual sale price. This protects gains accrued before 1 February 2018 from Section 112A LTCG tax. The grandfathering operates per acquisition lot, not per ISIN. Equity ledgers must be rebuilt lot-by-lot using broker contract notes.

Can I still use indexation for property sale after 23 July 2024?

Yes, but only if you are a resident individual or HUF and the property was acquired before 23 July 2024. You can choose between 12.5 percent without indexation or 20 percent with indexation using CII 363 for FY 2025-26, whichever produces lower tax. For properties acquired on or after 23 July 2024, only 12.5 percent without indexation applies. NRIs cannot use indexation.

How are mutual fund redemptions taxed - equity vs debt?

Equity-oriented MF (65 percent or more in equity): same as listed equity - Section 111A 20 percent STCG and Section 112A 12.5 percent LTCG above Rs 1.25 lakh. Hybrid MF (35 to 65 percent equity): 24-month holding period; STCG at slab; LTCG at Section 112 12.5 percent. Debt MF acquired on or after 1 April 2023: always slab rate under Section 50AA. Debt MF acquired before 1 April 2023: 36-month holding for LTCG at Section 112 12.5 percent.

How is crypto taxed under Section 115BBH and Section 194S?

All gains from transfer of virtual digital assets are taxed at flat 30 percent under Section 115BBH plus cess plus surcharge. No holding period distinction. Only cost of acquisition is deductible. No loss set-off intra-VDA or against other heads. No carry forward of losses. Section 194S deducts 1 percent TDS on transfers - Rs 50,000 threshold for specified persons; Rs 10,000 for others. Schedule VDA in ITR-2 or ITR-3 must be filed.

How is ESOP capital gain calculated after the perquisite tax?

ESOP is taxed in two stages. At exercise, perquisite under Section 17(2)(vi) equals FMV on exercise date minus exercise price, taxed as salary at slab. Employer deducts TDS under Section 192. At sale, capital gain equals sale price minus FMV on exercise date. Holding period runs from date of allotment, not exercise. Listed shares: 12 months for LTCG. Unlisted: 24 months for LTCG. Section 80-IAC startup employees can defer perquisite tax up to 5 years.

What is the Section 54EC Rs 50 lakh bond limit and 6-month window?

Section 54EC allows exemption of LTCG on land and buildings if invested in NHAI, REC, PFC, or IRFC bonds within 6 months of transfer. Cap is Rs 50 lakh per FY combined across two FYs straddling the 6-month window. Lock-in is 5 years. Bond interest is taxable at around 5.25 percent per annum. For very large gains, Section 54 residential property and Section 54F can be combined.

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Capital Gains ITR Filing for HNI Investors

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Documents: Broker tax P-and-L, MF redemption statement, sale deed, Schedule VDA reconciliation, Form 16 with ESOP perquisite

Fees: Starting Rs 1,499 for single-asset capital gains; Rs 9,999 for HNI multi-asset portfolios with reinvestment planning

Eligibility: ITR-2 mandatory for capital gains above Rs 1.25 lakh; ITR-3 if any business income (F-and-O, intraday, or proprietary trading)

Timeline: 7 to 14 working days; due 31 July 2026 for AY 2026-27 (FY 2025-26 income)

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Hear how teams across industries use Patron to save time, cut costs, & stay in control.

“

My flat was bought in 2010 for Rs 70 lakh and sold for Rs 2.4 crore. Patron computed both methods - 12.5 percent without indexation gave Rs 21.25 lakh tax; 20 percent with indexation gave Rs 13.4 lakh. We saved Rs 7.85 lakh by choosing the right option and parked the unused gain in CGAS before 31 July. Section 54 exemption preserved.

Anjali R

Senior Product Manager, Pune

★★★★★

2 months ago

“

My ESOP exit was a mess - 1,200 unlisted shares from a Bengaluru startup, allotted across 4 years, exercised at different FMVs, sold via secondary tender at Rs 4,800 per share. The Patron team rebuilt my entire ESOP ledger, validated my Section 80-IAC startup deferral status, separated perquisite from capital gains. Total tax saved: Rs 14 lakh.

Karthik V

SaaS Founder, Bengaluru

★★★★★

3 months ago

“

I had 8 years of equity portfolio with shares purchased before and after 1 February 2018. Patron rebuilt my equity ledger lot-by-lot using broker contract notes and 31 January 2018 NSE adjusted close prices. Section 112A grandfathering shifted nearly Rs 18 lakh of pre-2018 gains out of taxable LTCG. Filed without a single Section 143(1) intimation issue.

Rohit S

Equity Investor, Mumbai

★★★★★

1 month ago

“

Traded Bitcoin and Ethereum on three exchanges. Section 194S TDS in Form 26AS was Rs 4.7 lakh higher than my own crypto P-and-L. Patron reconciled every CSV export, wallet transfer, and TDS entry. Schedule VDA built correctly. No Section 139(9) defective return. Section 115BBH 30% computed cleanly.

Priya G

Crypto Investor, Delhi

★★★★★

4 months ago

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Capital Gains ITR Overview

📌 TL;DR - ITR for Capital Gains Services at a Glance

Capital gains in India for FY 2025-26 are taxed at 20% STCG (Section 111A) and 12.5% LTCG (Section 112A above Rs 1.25 lakh) on listed equity and equity mutual funds. Other LTCG falls under Section 112 at 12.5% without indexation. Property sellers (resident individual or HUF) acquired before 23 July 2024 can choose 12.5% without indexation OR 20% with indexation. Crypto VDA is 30% under Section 115BBH. ITR-2 is mandatory.

Capital gains taxation in India was rewritten in a single Union Budget. The Finance (No. 2) Act 2024 raised equity STCG from 15 to 20 percent under Section 111A, raised equity LTCG from 10 to 12.5 percent under Section 112A with the exemption climbing from Rs 1 lakh to Rs 1.25 lakh, removed indexation under Section 48 for most assets and introduced a uniform 12.5 percent rate under Section 112, and gave resident individuals and HUFs a one-time grandfathering choice on land or buildings acquired before 23 July 2024.

Crypto retained its standalone Section 115BBH 30 percent regime with 1 percent TDS under Section 194S. ESOP exits stayed two-stage with perquisite at exercise and capital gain on sale. AY 2026-27 is the first full ITR cycle under this rewritten regime. Tax Year 2026-27 onwards moves to the Income Tax Act 2025 with capital gains under Section 67 and Schedule VII and reinvestment exemptions under Sections 85-88. Patron Accounting has filed multi-asset capital gains ITRs for HNI investors since 2019.

Parameter	Detail
Governing Act	Income Tax Act 1961 Sections 45, 48, 54, 54EC, 54F, 111A, 112, 112A, 115BBH (FY 2025-26); Income Tax Act 2025 Section 67 + Schedule VII (from FY 2026-27)
Pivot Date	23 July 2024 - Finance (No. 2) Act 2024 changed STCG and LTCG rates, removed indexation for most assets, raised equity LTCG exemption from Rs 1 lakh to Rs 1.25 lakh
ITR Form	ITR-2 mandatory for individuals and HUF with capital gains and no business income; ITR-3 if F-and-O, intraday, or proprietary business income
Cost	Starting Rs 1,499 (single-asset capital gains); Rs 9,999 (HNI multi-asset with reinvestment planning) at Patron Accounting
Penalty	Rs 5,000 late filing under Section 234F; Section 234A 1% per month interest; Section 270A 50%/200% under-reporting / misreporting
Form / Portal	incometax.gov.in e-filing portal; Schedule CG, Schedule 112A, Schedule VDA, Schedule SI, Schedule CYLA, Schedule BFLA, Schedule CFL
Authority	Central Board of Direct Taxes (CBDT); CII Notification 70/2025 fixing FY 2025-26 = 363

Content is reviewed quarterly for accuracy.

What Is Capital Gains ITR Filing

Capital gains ITR filing means computing and reporting profit or loss from transfer of capital assets - listed equity, mutual funds, immovable property, unlisted shares, virtual digital assets, ESOP shares, gold, bonds - in ITR-2 (no business income) or ITR-3 (with business income), with applicable Sections 111A, 112A, 112, or 115BBH rates and Section 54/54F/54EC reinvestment exemptions where claimed.

Capital gains arise when a capital asset (Section 2(14)) is transferred during the FY. The gain is short-term or long-term based on the holding period: 12 months for listed securities and equity-oriented mutual funds, 24 months for immovable property and unlisted shares, 36 months for debt mutual funds acquired before 1 April 2023 (post-April 2023 debt MF gains are slab-rate regardless of holding under Section 50AA).

Tax computation depends on the asset class and the date of transfer relative to the 23 July 2024 pivot. ITR-2 is the workhorse form for capital gains filers without business income; ITR-3 applies when business income coexists. For authoritative guidance, see the Income Tax Department portal and PIB CBDT FAQ on Budget 2024 capital gains.

Key Terms for ITR for Capital Gains:

Section 45 (Charging Section): profits or gains arising from transfer of a capital asset are taxable in the year of transfer.
Section 48 (Mode of Computation): Capital gain = Sale consideration minus (cost of acquisition + cost of improvement + transfer expenses); CII for FY 2025-26 = 363.
Section 111A (STCG): 20% on listed equity, equity MF, business trust units where STT paid (15% for transfers before 23 July 2024).
Section 112A (LTCG): 12.5% on gains exceeding Rs 1.25 lakh per FY on listed equity and equity MF; pre-2018 grandfathering applies; no Section 87A rebate.
Section 112 (LTCG other assets): 12.5% without indexation; resident individuals and HUFs with land or buildings acquired before 23 July 2024 may choose 20% with indexation.
Section 115BBH (Crypto VDA): Flat 30% plus surcharge plus 4% cess; only cost of acquisition deductible; no loss set-off; no carry forward.
Section 194S (VDA TDS): 1% TDS; Rs 50,000 threshold for specified persons; Rs 10,000 for others; reflected in Form 26AS.
Section 17(2)(vi) (ESOP Perquisite): FMV at exercise minus exercise price taxed as salary at slab; FMV at exercise becomes cost for capital gains on subsequent sale.
Pre-2018 Equity Grandfathering: For listed equity and equity MF acquired before 1 February 2018, cost = higher of actual cost or 31 January 2018 FMV, capped at sale price.
Section 54 / 54F / 54EC: reinvestment exemptions in residential property or NHAI/REC/PFC/IRFC bonds (Rs 50 lakh cap, 6-month window, 5-year lock-in).

AY 2026-27 ITR-2 Capital Gains Filing

Who Needs to File Capital Gains ITR

You must file ITR-2 (or ITR-3 if business income coexists) if you had any of the following during FY 2025-26:

Listed equity or equity mutual fund redemption with sale consideration triggering Section 111A STCG or Section 112A LTCG (LTCG above Rs 1.25 lakh exemption).
Sale of immovable property (residential, commercial, land) - regardless of profit or loss; Section 50C deemed sale value applies if sale price is below 110% of stamp duty.
Crypto, NFT, or VDA transfer on exchange or P2P; Schedule VDA mandatory; Section 194S TDS reflected in Form 26AS must reconcile.
ESOP exercise or sale at listed or unlisted company; Section 17(2)(vi) perquisite at exercise plus capital gain on sale; Section 80-IAC startup deferral check applies.
Unlisted share transfer in private companies, LLPs, or secondary deals; Section 112 LTCG at 12.5% without indexation; 24-month holding period for LTCG.
Mutual fund redemption across equity, hybrid, debt, or international categories; Section 50AA always-slab rule for debt MF acquired on or after 1 April 2023.
Gold, gold ETF, or sovereign gold bond sale; Section 112 LTCG; sovereign gold bonds retain indexation benefit for transfers post 23 July 2024.
Carry-forward losses from earlier FYs (Section 74) - return must be filed by due date to preserve 8-year carry forward; STCL set off against any CG, LTCL only against LTCG; VDA losses cannot be set off or carried forward.

Note: ITR-1 (Sahaj) is NOT permitted if Section 112A LTCG exceeds Rs 1.25 lakh or any other capital gain exists. NRIs with India-source capital gains use ITR-2 with separate FA schedule disclosures.

HNI Capital Gains Services at Patron

Service	What We Do
Equity and Mutual Fund STCG/LTCG	Broker tax P-and-L and CDSL/NSDL holding statement reconciliation. Section 111A 20% STCG and Section 112A 12.5% LTCG above Rs 1.25 lakh. Pre-2018 grandfathering FMV deemed cost for shares acquired before 1 February 2018.
Property Sale with Indexation Choice	Comparative tax under both 12.5% without indexation and 20% with indexation (resident individuals/HUFs on pre-23 July 2024 acquisitions). Section 48 indexed cost using CII = 363 for FY 2025-26. Section 50C stamp duty value comparison.
Crypto VDA and Schedule VDA	Wallet, exchange, and Form 26AS Section 194S 1% TDS reconciliation. Schedule VDA population with date-of-purchase, date-of-sale, cost, sale consideration, TDS. Section 115BBH 30% computation. Defective return Section 139(9) trigger prevention.
ESOP Two-Stage Tax Computation	Form 16 Part B perquisite extraction (FMV at exercise minus exercise price taxed as salary). Capital gains on sale (sale price minus FMV at exercise). Listed: Section 111A or 112A; Unlisted: slab or Section 112. Section 80-IAC startup deferral validation.
Section 54/54F/54EC Reinvestment	Pre-sale tax structuring: Section 54 residential property reinvestment (Rs 10 crore cap), Section 54F net consideration reinvestment, Section 54EC NHAI/REC/PFC/IRFC bonds (Rs 50 lakh cap, 6-month window). CGAS deposit before due date if reinvestment incomplete.
Multi-Asset HNI Portfolio ITR-2	End-to-end ITR-2 with Schedule CG, Schedule 112A line-item per equity transaction, Schedule VDA, Schedule SI special rates, Schedule CYLA/BFLA loss set-off, Schedule CFL loss carry forward, Schedule AL (mandatory if income above Rs 1 crore).

Our Process

How Patron Files Your Capital Gains ITR

A 7-step end-to-end process from broker P-and-L collection to ITR-2 e-verification and refund tracking - typically 7 to 14 working days for HNI multi-asset portfolios.

Step 1

Asset-Class Inventory and Document Collection

We map every taxable transaction across the FY: broker tax P-and-L for equity, CAS statement for mutual funds, sale and purchase deeds for property, exchange CSV exports for crypto, Form 16 Part B and DP statement for ESOP shares. Match against AIS, TIS, and Form 26AS to ensure nothing is missed.

Broker P-and-L AIS / TIS Match

Documents Ready 01

Step 2

Asset-Wise STCG/LTCG Classification

Apply the holding period test for each transaction: 12 months for listed equity and equity MF, 24 months for property and unlisted shares, 36 months for pre-April 2023 debt MF (post-April 2023 debt MF always slab under Section 50AA). Identify the 23 July 2024 pivot date for rate selection.

Holding Period Test 23 Jul 2024 Pivot

Classified 02

Step 3

Cost Determination

For listed equity acquired before 1 February 2018, apply Section 112A grandfathering (higher of actual cost or 31 January 2018 FMV, capped at sale price). For property acquired before 23 July 2024, compute both 12.5% without indexation and 20% with indexation (CII = 363 for FY 2025-26). For ESOP, use FMV at exercise as cost. For crypto, only original purchase cost is allowed.

Grandfathering CII = 363

Cost Computed 03

Step 4

Section-Wise Tax Computation

Section 111A 20% on listed equity STCG. Section 112A 12.5% on listed equity LTCG above Rs 1.25 lakh. Section 112 12.5% on other LTCG. Section 115BBH 30% on crypto. Apply 4% health and education cess. Apply surcharge with 15% cap on Section 111A/112A/112 (per CBDT FAQ).

Section-Wise Split 15% Surcharge Cap

Tax Computed 04

Step 5

Reinvestment Exemption Application

Identify Section 54 (residential property to residential property), Section 54F (other LTCA to one residential property), and Section 54EC (LTCG on land/building to NHAI/REC/PFC/IRFC bonds, Rs 50 lakh cap, 6-month window) opportunities. Deposit unutilised gain in Capital Gains Account Scheme before 31 July 2026 if reinvestment is in progress.

Sec 54 / 54F / 54EC CGAS Deposit

Reinvestment Plan 05

Step 6

Loss Set-Off and Carry Forward

STCL set off against any STCG or LTCG; LTCL set off only against LTCG. Both can be carried forward 8 years (Section 74). Crypto VDA losses CANNOT be set off or carried forward (Section 115BBH(2)). Schedule CYLA, BFLA, and CFL populated.

8-Year Carry Forward Schedule CYLA/BFLA

Losses Adjusted 06

Step 7

ITR-2 Filing and E-Verification

File ITR-2 on incometax.gov.in. Schedule CG, Schedule 112A line-item, Schedule VDA, Schedule SI, Schedule AL (if income above Rs 1 crore), Schedule TDS. E-verify within 30 days. Track refund. Respond to Section 143(1) intimation or Section 139(9) defective return within timeline.

E-Verification Refund Tracking

ITR Filed 07

Document Checklist for Capital Gains ITR

A. Identity:

PAN card and Aadhaar (linked - mandatory)
Bank account details for refund

B. Equity and Mutual Fund:

Broker tax P-and-L statement for FY 2025-26 (Zerodha, Groww, ICICI Direct, HDFC Sec, etc.)
CDSL/NSDL holding statement as on 31 March 2025 and 31 March 2026
CAMS or KFintech Consolidated Account Statement (CAS) for mutual funds
For pre-2018 equity: 31 January 2018 FMV reference (BSE/NSE adjusted close)
Contract notes for any off-market transactions

C. Property Sale:

Sale deed and purchase deed with stamp duty value
Cost of improvement bills (with date) for indexation
Brokerage and transfer expense receipts
Form 26QB (TDS challan) from buyer; Form 27Q if NRI seller
Section 50C valuation report if stamp duty value exceeds sale consideration

D. Crypto VDA:

Exchange CSV exports for FY 2025-26 (CoinDCX, WazirX, Binance, etc.)
Wallet transaction history (MetaMask, Trust Wallet, Phantom)
Form 26AS - Section 194S TDS line items
P2P transaction records if applicable

E. ESOP:

Form 16 Part B with perquisite line item (FMV minus exercise price)
Grant letter and exercise confirmation from employer
Merchant banker FMV certificate (unlisted ESOP) or exchange close price (listed)
Sale broker contract note when shares are sold
For startup ESOP: DPIIT recognition certificate and Section 80-IAC IMB approval

F. Reinvestment Documents:

New residential property purchase deed (Section 54/54F)
NHAI/REC/PFC/IRFC bond allotment letter (Section 54EC)
CGAS deposit receipt if unused gain parked in scheme

G. Other:

Form 26AS, AIS, and TIS download from incometax.gov.in
Brought forward loss return acknowledgement (for Section 74 set-off)
Section 80C/80D/80E receipts (if old regime)

Common HNI Challenges and Patron Solutions

Challenge	Impact	How Patron Accounting Solves It
Property indexation choice on long-held flat	Compute both methods. With CII 117 (FY 2009-10) and 363 (FY 2025-26), indexation triples cost. We compute under both 12.5% without indexation and 20% with indexation, then pick the lower-tax option. For older properties with limited price appreciation but high inflation gap, 20% with indexation usually wins by 30 to 50 percent.
Pre-2018 equity grandfathering across mixed lots	Section 112A grandfathering operates per ISIN per acquisition lot. For each pre-2018 lot, cost = higher of actual purchase price or 31 January 2018 FMV, capped at sale price. We rebuild equity ledger lot-by-lot using broker contract notes and historical 31 January 2018 NSE/BSE adjusted close prices. Often shifts a significant portion of pre-2018 gains out of taxable LTCG.
Schedule VDA mismatch with Form 26AS Section 194S TDS	The Income Tax Department actively checks Schedule VDA sale consideration against Form 26AS Section 194S gross receipts - Schedule VDA receipts must be greater than or equal to 26AS figures. We reconcile every exchange CSV export, wallet transfer, and TDS entry. Crypto-to-crypto swaps are taxable transfers. P2P transactions need separate reporting. Section 115BBH allows zero loss set-off, even within VDA. Full Schedule VDA build to prevent Section 139(9) defective return.
ESOP perquisite vs capital gains split for unlisted startup	Two-stage tax. Stage 1 at exercise: Perquisite under Section 17(2)(vi) = (FMV minus exercise price) per share, taxed as salary at slab. Employer should already have deducted TDS under Section 192 and reported in Form 16 Part B (or deferred under Section 80-IAC if startup is DPIIT recognised). Stage 2 at sale: Capital gain = sale price minus FMV at exercise. Holding period from date of allotment (not exercise). Unlisted: 24 months for LTCG; if LT, Section 112 at 12.5% without indexation; if ST, slab rate. We pull merchant banker FMV certificate to substantiate cost.

Capital Gains ITR Filing Fees

Fee Component	Amount
Patron Accounting Professional Fees	Starting from INR 1,499 (Exl GST and Govt. Charges)
ITR-2 Single-Asset Capital Gains (Equity OR MF Only)	Starting from INR 2,499 (Exl GST and Govt. Charges)
ITR-2 Equity + MF Combined	Starting from INR 3,999 (Exl GST and Govt. Charges)
ITR-2 with Property Sale (Indexation Comparison)	Starting from INR 5,999 (Exl GST and Govt. Charges)
ITR-2 with Crypto VDA (Schedule VDA Build)	Starting from INR 4,999 (Exl GST and Govt. Charges)
ITR-2 with ESOP Exit (Listed or Unlisted)	Starting from INR 4,999 (Exl GST and Govt. Charges)
HNI Multi-Asset ITR-2 (Full Portfolio)	Starting from INR 9,999 (Exl GST and Govt. Charges)
ITR-3 with Capital Gains + Business Income	Starting from INR 8,999 (Exl GST and Govt. Charges)
Section 197 Lower TDS Certificate (Property Sale)	Starting from INR 4,999 (Exl GST and Govt. Charges)
Income Tax Department Late Filing Fee (Section 234F)	Rs 5,000 if income above Rs 5 lakh; Rs 1,000 if income up to Rs 5 lakh
Section 234A Interest on Unpaid Tax	1% per month from 1 August 2026 till date of filing

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

Get a free ITR for Capital Gains consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

Capital Gains ITR Timeline

Stage	Estimated Timeline
Single-Asset Capital Gains (Equity OR MF Only)	5 to 7 working days; due 31 July 2026
Equity + MF Combined ITR-2	7 to 10 working days; due 31 July 2026
Property Sale with Indexation Comparison	10 to 14 working days; due 31 July 2026 (CGAS deposit by 31 July 2026 if reinvestment pending)
Crypto VDA Reconciliation Across Exchanges	10 to 14 working days; due 31 July 2026
ESOP Listed Share Sale	7 to 10 working days; due 31 July 2026
ESOP Unlisted with Merchant Banker FMV	14 to 21 working days; due 31 July 2026
HNI Multi-Asset Full Portfolio	14 to 21 working days; due 31 July 2026
Section 197 Form 13 Lower TDS (Property)	21 to 30 working days; required BEFORE sale execution

Statutory deadlines for AY 2026-27 (FY 2025-26):

31 July 2026 - non-audit ITR-2 under Section 139(1)
31 October 2026 - audit-case ITR-3 (where Section 44AB applies)
31 December 2026 - belated/revised return under Section 139(4)/(5) with Section 234F fee Rs 5,000 (Rs 1,000 if income up to Rs 5 lakh)
31 March 2026 - extended Capital Gains Account Scheme deposit deadline for FY 2024-25 gains (Budget 2025)

Key Benefits

Why HNIs Hire a CA Instead of DIY Capital Gains Filing

Pre-2018 Equity Grandfathering Lot-by-Lot

DIY platforms apply 31 January 2018 FMV at the ISIN level, but Section 112A grandfathering operates per acquisition lot. Manual lot reconciliation often produces a 20-30 percent lower LTCG.

Property Indexation Choice Optimisation

The 12.5%-without vs 20%-with-indexation choice can produce tax differences of Rs 5-15 lakh on a single transaction. DIY tools default to one method without comparing.

Schedule VDA Reconciliation

Schedule VDA receipts must be greater than or equal to Form 26AS Section 194S gross receipts; otherwise, Section 139(9) defective return is automatic. Crypto-to-crypto swaps are taxable transfers most DIY platforms miss.

ESOP Holding Period from Allotment Date

Holding period for capital gains starts at allotment, not exercise. DIY platforms commonly use exercise date and misclassify gains as STCG when they qualify as LTCG.

Section 54 vs Section 54F Selection

Reinvesting LTCG from property in another residential property: Section 54 (only gain reinvested needed). LTCG from equity, gold, or other LTCA: Section 54F (entire NET CONSIDERATION needs reinvestment). Wrong choice = no exemption.

CGAS Deposit Before ITR Due Date

If reinvestment is not completed by 31 July 2026 but you intend to claim Section 54/54F, deposit unutilised gain in CGAS at a notified bank by the due date. Missed deadline = lost exemption.

Section 50C Stamp Duty Override

If property sale consideration is less than 110% of stamp duty value, Section 50C deems stamp duty value as sale consideration. We compute both to identify when valuation officer reference under Section 50C(2) is warranted.

Surcharge Cap of 15% on Section 111A/112A/112

Above Rs 2 crore total income, surcharge at 25% or 37% applies normally; CBDT FAQ confirms 15% cap on capital gains from these sections. DIY platforms occasionally apply the higher rate.

Loss Set-Off Across Schedules

STCL set off against any STCG or LTCG; LTCL only against LTCG. VDA losses cannot offset anything. Schedule CYLA, BFLA, and CFL must reconcile to the rupee.

Trust and Track Record

With offices in Pune, Mumbai, Delhi, and Gurugram, Patron Accounting handles HNI capital gains across India. City-specific ITR for Capital Gains pages are available for Pune, Mumbai, Delhi, and Gurugram. NRI investors with India-source capital gains are served via our ITR for NRIs service.

Outcome proof: Two HNI engagements in FY 2024-25 closed with combined tax savings of Rs 22 lakh - (a) property indexation choice optimisation on a 2009-acquired Mumbai flat saving Rs 7.85 lakh, and (b) startup ESOP perquisite/capital gains split with Section 80-IAC deferral validation saving Rs 14 lakh in dry-tax exposure.

Equity vs Property vs Crypto vs ESOP - Capital Gains Compared

Aspect	Listed Equity / Equity MF	Property (Land/Building)	Crypto VDA	ESOP (Listed)	ESOP (Unlisted)
Governing Section	Sec 111A (STCG), Sec 112A (LTCG)	Sec 112 (LTCG); Slab (STCG)	Sec 115BBH	Sec 17(2)(vi) + Sec 111A/112A	Sec 17(2)(vi) + Sec 112
Holding Period for LTCG	12 months	24 months	Not applicable	12 months from allotment	24 months from allotment
STCG Rate	20%	Slab rate	30% (no STCG/LTCG split)	20%	Slab rate
LTCG Rate	12.5% above Rs 1.25 lakh exemption	12.5% without indexation OR 20% with (resident pre-23 Jul 2024 choice)	30%	12.5% above Rs 1.25 lakh	12.5% without indexation
Indexation	NO (post 23 Jul 2024)	YES if pre-23 Jul 2024 acquisition (resident only)	NO	NO	NO
Cost of Acquisition	Pre-2018: higher of cost or 31-Jan-2018 FMV	Cost + improvement	Original purchase only	FMV at exercise date	FMV at exercise per merchant banker
Loss Set-Off	STCL: vs any CG; LTCL: vs LTCG only; carry 8 yrs	Same as equity	NONE allowed	Same as equity	STCL/LTCL set-off allowed normally
Reinvestment Exemption	Sec 54F (entire net consideration in 1 house)	Sec 54 (residential property), Sec 54EC (Rs 50L bonds)	NONE	Sec 54F if applicable	Sec 54F if applicable
ITR Schedule	Schedule 112A line-item	Schedule CG	Schedule VDA	Schedule 112A + Salary	Schedule CG + Salary
Section 87A Rebate	NOT available on 112A LTCG	Available if total income within rebate cap	NOT available on Sec 115BBH	NOT on 112A LTCG	Available if applicable

Related Patron Services

HNIs frequently need adjacent compliance work. We bundle these:

Income Tax Return (general) - end-to-end ITR-1 to ITR-7 filing for individuals, HUF, and businesses
ITR for Property Sale - focused property capital gains with Section 50C and indexation comparison
ITR for Crypto Traders - Schedule VDA build and Section 194S TDS reconciliation
ITR for F-and-O Traders - business income vs capital gains classification
ITR for Salary - salary returns with ESOP perquisite and capital gains add-on
Tax Planning Services - advance tax, regime selection, reinvestment timing
Income Tax Notice for Defective Return - Section 139(9) response for Schedule VDA mismatch
ITR for Business - business income return for proprietorship and partnerships

Legal and Compliance Framework

Governing Acts and Rules:

Income Tax Act 1961 - applies to AY 2026-27 (FY 2025-26 income) per Section 536(2)(c) of ITA 2025
Income Tax Act 2025 - applies to Tax Year 2026-27 onwards (FY 2026-27 income from 1 April 2026)
Income Tax Rules 1962 - Rule 11UA (FMV of unquoted shares); Rule 3(8) (ESOP FMV computation)
Finance (No. 2) Act 2024 - capital gains rate restructure effective 23 July 2024
Finance Act 2022 - introduced Sections 115BBH and 194S for VDA
CBDT Notification 70/2025 - CII for FY 2025-26 = 363
CBDT FAQ on Budget 2024 capital gains regime (PIB PRID 2036604, 23 July 2024)

Key Penalty Provisions for Capital Gains Filers:

Section 234F late filing fee: Rs 5,000 (Rs 1,000 if total income up to Rs 5 lakh)
Section 234A interest: 1% per month from 1 August 2026 on unpaid tax
Section 234B interest: 1% per month for advance tax shortfall
Section 234C interest: 1% per month for deferred advance tax instalments
Section 270A: 50% under-reporting penalty; 200% misreporting penalty
Section 271AAC: 60% penalty on undisclosed income under Section 68 to 69D

Regulatory Reference Table:

Provision	What It Says	Capital Gains Impact
Section 45 ITA 1961	Charging Section - profits from transfer of capital asset	Foundational provision; year of transfer triggers tax
Section 47	Transfers not regarded as transfer	Gift to relative, partition of HUF, conversion of bonds - exempt from CG
Section 48	Mode of computation including indexation	CII = 363 for FY 2025-26 (Notification 70/2025); indexation only on pre-23 Jul 2024 property choice
Section 49	Cost in special cases (gift, inheritance)	Deemed cost = previous owner's cost; holding period includes previous owner
Section 50C	Stamp duty value vs sale consideration	If sale less than 110% of stamp duty, deemed sale = stamp duty value
Section 50AA	Specified mutual funds and market-linked debentures	Always slab rate; no LTCG benefit (post 1 April 2023 debt MF)
Section 54 ITA 1961	Residential property to residential property reinvestment	Cap Rs 10 crore; 1 year before to 2 years after (purchase) or 3 years (construction); 3-year lock-in
Section 54EC ITA 1961	Land/building LTCG to NHAI/REC/PFC/IRFC bonds	Cap Rs 50 lakh per FY combined; 6-month window; 5-year lock-in
Section 54F ITA 1961	Other LTCA to one residential property	Entire NET CONSIDERATION; cap Rs 10 crore; disqualified if more than 1 residential property owned
Section 74	Loss set-off and carry forward	STCL vs any CG; LTCL only vs LTCG; carry 8 years
Section 111A ITA 1961	STCG on listed equity, equity MF, business trust	20% (was 15% pre-23 Jul 2024); STT mandatory; 4% cess; surcharge cap 15%
Section 112 ITA 1961	LTCG on assets other than Section 112A	12.5% without indexation; resident individual/HUF property choice with 20% indexation
Section 112A ITA 1961	LTCG on listed equity, equity MF, business trust	12.5% above Rs 1.25 lakh; pre-2018 grandfathering; no Sec 87A rebate; surcharge cap 15%
Section 115BBH ITA 1961	Tax on income from VDA transfer	30% flat; only cost of acquisition deductible; no loss set-off; no carry forward
Section 194S ITA 1961	TDS on VDA transfer	1% TDS; Rs 50,000 threshold for specified persons; Rs 10,000 for others
Section 17(2)(vi) ITA 1961	ESOP perquisite at exercise	FMV at exercise minus exercise price taxed as salary; TDS under Section 192
Section 80-IAC ITA 1961	Eligible startup deduction	DPIIT-recognised startups; ESOP perquisite tax deferral up to 5 years
Section 234F	Late filing fee (Section 428 of ITA 2025)	Rs 5,000 (Rs 1,000 if income up to Rs 5 lakh)
Section 139(9)	Defective return notice	Auto-trigger if Schedule VDA receipts less than 26AS Sec 194S receipts
Section 67 + Schedule VII ITA 2025	Capital gains under new Income Tax Act	Effective FY 2026-27; consolidates Sections 45-55A of 1961 Act
CBDT Notification 70/2025	CII for FY 2025-26	CII = 363; binding for indexation calculations

All fees and charges listed are indicative only and do not constitute a binding offer. Final fees depend on the scope of work, asset complexity, and the specific facts of your case. Government statutory fees are payable to the Government and are subject to change. Patron Accounting fees are exclusive of GST and Government charges. Please contact us for a customised quote.

Frequently Asked Questions

Top questions HNI investors ask before filing capital gains ITR for AY 2026-27.

Quick Answers

Q: Cost of single-asset capital gains ITR? A: Starting Rs 1,499 at Patron Accounting (Exl GST and Govt. Charges). HNI multi-asset Rs 9,999.

Q: ITR-2 due date for AY 2026-27? A: 31 July 2026 for non-audit cases.

Q: CII for FY 2025-26? A: 363 (CBDT Notification 70/2025).

Q: Section 112A exemption limit? A: Rs 1.25 lakh per FY on listed equity and equity MF LTCG.

Q: Crypto tax rate under Section 115BBH? A: Flat 30% plus 4% cess plus surcharge; no loss set-off; 1% TDS under Section 194S.

Q: Section 54EC bond cap and window? A: Rs 50 lakh per FY combined; investment within 6 months; 5-year lock-in.

Q: Section 54F vs Section 54? A: Section 54 = property to property (gain only). Section 54F = other LTCA to one house (entire net consideration).

Q: Pre-2018 equity grandfathering? A: Cost = higher of actual price or 31 January 2018 FMV, capped at sale price; per lot, not per ISIN.

Act Now: ITR Deadlines and Capital Gains Forfeiture Risks

Why timing matters for capital gains filers:

Section 80 (loss carry forward): If you file your ITR after 31 July 2026, you forfeit the 8-year carry forward of capital losses under Section 74. Rs 5 to 50 lakh of crystallised STCL or LTCL becomes worthless.
Section 54/54F reinvestment: If your new residential property purchase is still in progress on 31 July 2026, you must deposit the unutilised gain in a Capital Gains Account Scheme (CGAS) at a notified bank by that date. Missed deadline = lost exemption = direct tax liability.
Section 54EC bonds: 6-month window from sale date. Miss it and you lose the Rs 50 lakh exemption on land or building LTCG.
Schedule VDA mismatch: Schedule VDA receipts less than Form 26AS Section 194S receipts triggers Section 139(9) defective return automatically. Reconcile every exchange and wallet before filing.
Section 197 lower TDS for property: Form 13 application takes 21 to 30 working days. Apply before sale execution to avoid Rs 5 to 50 lakh excess TDS lockup.

Free 15-minute portfolio review. Call +91 945 945 6700, WhatsApp wa.me/919459456700, or email info@patronaccounting.com. Send your broker tax P-and-L, MF CAS, property sale deed, exchange CSV, and Form 16. We tell you the exact tax liability and reinvestment options before you pay anything.

File Your Capital Gains ITR with Patron Accounting

Capital gains filing for an HNI portfolio is not a single-form exercise. It is coordination across ten or more discrete tax sections - Section 111A, 112A, 112, 115BBH, 17(2)(vi), 50C, 50AA, 54, 54F, 54EC, 80-IAC, 87A, 234F. One wrong allocation can cost you Rs 5 to 15 lakh on a single transaction.

Patron Accounting has filed multi-asset capital gains ITRs for HNI investors since 2019. Our CA and CS team reads your broker P-and-L, AIS, Schedule VDA, and Form 16 perquisite line item before quoting tax. We compute property indexation under both methods, rebuild equity ledgers lot-by-lot for pre-2018 grandfathering, reconcile every Section 194S TDS line item, and structure Section 54/54F/54EC reinvestment to legally minimise your liability.

Free 15-minute portfolio review. No obligation. Send your documents and get the exact tax liability and reinvestment options before you pay anything. The 31 July 2026 ITR-2 deadline is fixed - the loss carry forward and reinvestment exemptions you preserve depend entirely on filing on time.

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Capital Gains ITR Filing in Your City

City-specific capital gains ITR filing for resident individuals and HUFs across Pune, Mumbai, Delhi, and Gurugram - with same-day pickup of broker P-and-L, sale deed, and Form 16.

Capital Gains ITR Filing - Office Cities

In-person CA review and document handover at our Pune, Mumbai, Delhi, and Gurugram offices.

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ITR for Salary

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Tax Planning Services

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Content Created: 8 May 2026 | Last Updated: 8 May 2026 | Next Review: 8 August 2026 | Reviewed By: CA & CS Team, Patron Accounting LLP

Reviewed quarterly during ITR season (April to September) and after every Union Budget (typically February). Rates, CII values, Section 54EC limits, and Income Tax Act 2025 transition mappings are kept current. For source citations: Income Tax Act 1961, Income Tax Act 2025, Income Tax Rules 1962, Finance (No. 2) Act 2024, CBDT Notification 70/2025 (CII for FY 2025-26 = 363), and CBDT FAQ on Budget 2024 capital gains regime (PIB PRID 2036604).