Sold shares, property or crypto? What to know before filing income tax return
This article outlines common pitfalls taxpayers face when reporting capital gains from shares, crypto, and property in their income tax returns. It emphasizes the importance of reconciling brokerage statements with the Annual Information Statement to avoid tax notices.
Why it matters
As tax authorities increase digital scrutiny, accurate reporting of diverse investment assets is essential for individual taxpayers to avoid penalties and legal complications.
Many individual taxpayers view filing an Income Tax Return (ITR) as a straightforward task—declaring salary income, updating investment details and paying any balance tax. However, capital gains can turn an otherwise straightforward tax return into a complicated exercise.Post Covid, it has become common for salaried employees to invest in and trade equities and similar assets. During the year, they may sell shares, redeem mutual funds, book gains from foreign Employee Stock Options (ESOPs), Restricted Stock Units (RSUs) or other investments, or dispose of inherited property. At first glance, while these transactions may seem straightforward, an incorrect holding period, mismatch with the Annual Information Statement (AIS), or missed foreign asset disclosure can lead to tax notices, delayed refunds or additional tax demands.As the ITR filing season for Financial Year (FY) 2025–26 progresses, capital gains reporting is under greater scrutiny than ever.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in