Why is it important to show capital gains in income tax return, what if you forget it?

Talking about gold, if you sell it after holding it for three years, then there is a long term capital gain of 20% plus tax plus 4% cess.

Know about Long Term Capital Gains Tax

The last date for filing Income Tax Return is 31st December, but do not forget to give Capital Gains in Income Tax Return at all. You have to give the information about the capital gains in Schedule CG of ITR Form 2 and 3. Let us tell you that whenever you sell your asset i.e. any kind of asset, then the profit earned on it is called Capital Gains.

There are two types of capital gains, One is short term and the other is long term capital gains. Four assets that you sell on which you attract capital gains are gold, real estate, shares or units of mutual funds. You will have to pay tax according to the time you hold these four. Before April 2018, long-term capital gains from investments in shares were not taxed.

Know about Long Term Capital Gains Tax…

If we talk about gold, then if you sell it after holding it for three years, then there is a long term capital gain of 20% with tax plus 4% cess. But if you sell it before three years then it will be short term capital gains tax and that profit will be added to your income and you will have to pay this tax according to your tax slab.

Now if you talk about real estate or property, then if you hold the property for two years, then LTCG and sell it before then you will have to pay tax according to the slab by adding profit to your income. 20% LTCG will be applicable on the property, in which the benefit of cost inflation index will be available, that is, the price at which it is bought and sold at a discount is adjusted against the prevailing inflation.

On the other hand, if you want to give LTCG on the shares, then it is necessary to hold it for 1 year. Profits of shares up to 1 lakh are exempted and profits above this will be taxed at the rate of 10%. STCG of 15% will be levied if the shares are sold before one year. If you do not hold Equity MF for one year, then STCG of 15% and after one year 10% LTCG will have to be given on profit above 1 lakh.

What if it is not shown in ITR?

According to experts, if an investor does not give information about LTCG while filing income tax return, then strict action can be taken against him. The Income Tax Department will send the notice.

read this also-Prime Minister Narendra Modi’s important meeting with the big businessmen of the country continues, these issues including the budget are being discussed