Equity ETF tax reporting

Taxation
1

Where to report ITBEES (Equity ETF) STCG and LTCG in ITR-2?

2

Hey @Suresh_kumar4

ITBEES (Equity ETF) is taxed just like regular listed stocks because:

  • It is an equity-based investment, and
  • STT (Securities Transaction Tax) is paid when you buy or sell it on the stock exchange.

So, the tax rules are:

  • If you sell it within 12 months, it’s called Short-Term Capital Gain (STCG) and taxed at 20% (under Section 111A).
  • If you sell after 12 months, it’s Long-Term Capital Gain (LTCG) and taxed at 12.5% (under Section 112A), but the first ₹1.25 lakh of gains in a year is tax-free.
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