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  • What is schedule 112A in ITR regarding Mutual Funds investment redemption.

    Confused regarding the selection of ITR? Get clear information on the schedule 112A in ITR regarding Mutual Funds investment redemption.

    Last date for ITR filing for FY 2019-20 which has been extended due to the pandemic is now nearing very fast. Few changes have been proposed in the ITR and one of it is Schedule 112A in ITR regarding Mutual Funds redemption.

    Now equity investors and Mutual Funds Investors will have to fill this schedule in the ITR. Now can anyone throw light on this regarding the selection of ITR if, I have Mutual Fund investment and also if I do don't have any Mutual Funds or Equity investment and my only source of income is salary.
  • Answers

    3 Answers found.
  • If one has sold any mutual fund or even some other things like shares etc during the financial year 2019-20 for which now one has to file the IT return, the IT department has made it compulsory to fill those details in a schedule 112A in the prescribed format in IT return which incidentally is very elaborate and cumbersome and people are now not happy in filling that. In that format the investor has to mention all the details line wise for each transaction.

    Unfortunately, one cannot upload the excel file also for it as there is no facility and one can not do copy and paste also as the system for that is not there. So one has to manually enter all the details. In this age of digitisation asking the tax payer to fill such an elaborate format is too much and till they develop some other facility of file uploading or accepting the copy and paste of data, we would have to bear with it.

    If a person has done such transactions during the year for which one is filling IT return then one has to fill IT Return form - 2 which itself is a big form and over and above that this cumbersome format is there. So, probably instead of filling ourselves we might have to take help from some IT return agent in this matter.

    Those who have not done any such transactions of that sort and have only salary income can fill the short and easy IT Return form - 1.

    Knowledge is power.

  • The income tax department introduced a new schedule called 'Section 112A' in ITR-2 to get the details of the sale transactions of listed equity shares or equity-oriented mutual funds where the gains are long term in nature from the assessment year 2019-20

    The taxpayers are required to provide information as mentioned below
    1.ISIN Code
    2.Name of the Share/Unit
    3.No. of Shares/Units
    4.Sale-price per Share/Unit
    5.Cost of acquisition per Share/Unit
    6.Fair Market Value per share/unit
    7.Cost of improvement without indexation
    8.Expenditure wholly and exclusively in connection with the transfer
    Many taxpayers may not be knowing all these pieces of information.
    From 2 is to be filled by Individuals and HUF who are having income other than income from "Profits and Gains from Business or Profession".
    Form ITR 2is to be filled by the persons who are having
    1. Income from Salary/Pension
    2. Income from House Property
    3. Income from Capital Gains/loss on the sale of investments/property including both Short Term and Long Term
    4. Income from winning from Lottery, bets on Race Horses and other legal means of gambling
    5. Foreign Assets/Foreign Income
    6. Agricultural Income more than Rs 5000
    7. Resident not ordinarily resident and a Non-resident
    8. A Director of any company and an individual who is invested in unlisted equity shares of a company will be required to file their returns in ITR-2.
    Any individual or HUF having income from Business or Profession need not fill ITR2. They can go for ITR.1.
    By seeing the above list you can decide about the form you have to fill.

    always confident

  • This was introduced during the year 2018-19 only but was later cancelled for that year. Now it is applicable from the financial year 2019-20 onwards. So people who are filing the IT return for the financial year 2019-20 have to give this information. It is only for those who have done some selling transaction during the financial year 2019-20 and have to mention it for calculation of the capital gain tax. Earlier a few of the transaction details (buying date and price, selling date and price, and the respective amounts) were asked and we filled them easily. Now all the details are being asked and it is an inconvenient thing though for the IT department it would be helpful to catch any irregularity or wrong information given by a particular person. Many people who were doing the IT return filing themselves are now going to agents to get that tedious entry making. Right now there is no facility of uploading an Excel file containing that type of data which usually people can prepare in their spare time and then quickly upload in the IT system at the time of filing the IT return. May be in subsequent years such a facility be available in IT site.

    Thoughts exchanged is knowledge gained.

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