How to Fill Quarterly STCG/LTCG Properly

Taxation
1

On ITR 3 I am showing STCG (Section 11A) for 50K!

I ran into the verification failure issue: "The total of all the quarter of respective CG must be equal to the final figures of schedule BFLA."

My yearly capital gain is positive, So I went ahead and started to compute my quarterly gains from Zerodha statement and started to enter on the sub-section “Edit information about accrual/receipt of capital gain”. And then I realized that in December quarter(15 Sep-15Dec) I have loss instead of profit. The tax site would not allow entering negative amount. I was puzzled, not able to save data.

So i thought to adjust Dec Qtr loss with Sep Qtr gain and was able to save information and ITR was verified as well. But I am worried if this will cause issue in future!!!

I also found another sub-section “E. Set-off of Current Year Capital Losses with Current Year Capital Gains” under “Schedule Capital Gains” but there was no way to enter loss and as per details written there the numbers need to be negative to show loss! If i am not missing anything then this is a deficiency in ITR Quarterly STCG/LTCG entry where it is not allowing negative value.

What should I do? Should I go ahead with two Qtr gain/loss adjustment? If i don’t do that then sum of all three positive Qtrs will exceed my Net STCG. I need to finish this ITR burden and save interest as I am going to pay 25k additional tax with ITR due to STCG and bank interests :upside_down_face:

2 Likes
2

See if this comment (and the associated discussion) helps.

3

Yes similar thread. But any example how to fill the 5 breakdowns will help …

Case: STCG gain
01Apr To 15 June: 5,000/-
16 June To 15 Sep: 8,000/-
16 Sep To 15 Dec: -3000/- (Loss)
16 Dec To 15 Mar: 1500/-
16 March To 31 Mar: 100/-

How to Adjust the Loss part in the 5 breakdown? From Which Qtr i can deduce or adjust?

4

May be just deduct that loss figures across all quarters and submit??

Carry forward loss will depend on brought forward loss section …fill bfl section first

5

This breakdown is not clear. Do you mean, e.g., that you made an extra Rs.8000/- in the 16Jun-15Sep period, or that you made an extra Rs.3000 in this period? Are your numbers standalone or cumulative?

6

My cumulative Gain is:
5,000+8,000-3,000+1500+100 = 11600/-

Sorry for the incorrect representation in original post. Here is how I mean …

01Apr To 15 June: 5,000/-
16 June To 15 Sep: 8,000/-
16 Sep To 15 Dec: -3000/- (Loss)
16 Dec To 15 Mar: 1500/-
16 March To 31 Mar: 100/-

7

Seems you understood my question correctly, but the question is what is legal way to adjust it. I am planning to deduce the loss from June 16-Sep 15 Qtr

8

Thanks for the clarification.

I am not a tax expert, but my understanding is that we are supposed to report our gains after setting off our losses; they are only interested in our net income.

Based on this understanding, the taxable amounts would be split as:

01Apr To 15 June: 2,000/-
16 June To 15 Sep: 8,000/-
16 Sep To 15 Dec: 0/-
16 Dec To 15 Mar: 1500/-
16 March To 31 Mar: 100/-

9

Any tax expert here, I am also having same problem here in second last quarter.

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10

I am not a tax expert but this is what worked for me after trying many combinations. It was really a pain :(.

My scenario:

STCG -6660
LTCG 85923
Broker Fee 1717

Taxable Gain= -6660+85923-1717=77546 (STCG loss automatically set off against LTCG gain by the ITD)

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Since STCG is negative and set off against LTCG quarter wise breakup is not required (my guess). This worked for me. You have to exclude all losses and fees, since it is to calculate tax on your gain, if any.