Reporting mutual fund gains in ITR-2

The moment you've sold (or switched) any mutual fund units in a financial year, ITR-1 stops being eligible. You'll file ITR-2, which includes Schedule CG for capital gains.

The two main sections

• Section A: Short-term capital gains. Lists STCG from equity (taxed at 20%), debt, and other assets. Section 111A applies to listed equity STCG.
• Section B: Long-term capital gains. LTCG from equity goes under Section 112A (12.5% above ₹1.25 lakh). LTCG from debt (pre-April-2023 units) goes under Section 112 with indexation.

Where to get the numbers

1. Your AMC capital-gains statement (available on each AMC's investor portal, or through CAMS / KFintech for multi-AMC consolidation). Issued by 30 June for the previous financial year.
2. The Consolidated Account Statement (CAS) from CAMS / KFintech doesn't itself compute gains, but lists every transaction for cross-verification.
3. The Annual Information Statement (AIS) on the income-tax portal — it pre-populates many gains based on AMC reporting.

For equity LTCG: the ISIN-level grid

ITR-2's Schedule 112A asks for a row per scheme (ISIN-level), showing: total sale consideration, total purchase cost, cost adjustment under grandfathering, and the resulting gain. For SIPs, every instalment for that scheme aggregates into one row.

Common mistakes to avoid

• Forgetting that switches are taxable events. If you switched ₹10 lakh from a debt fund to an equity fund mid-year, the switch-out is reportable income.
• Using sale value − purchase value without applying grandfathering for pre-2018 equity units.
• Setting off LTCG against STCG losses — only same-head set-offs are allowed; LTCG can be set off against LT losses, STCG against ST losses.
• Missing the ₹1.25 lakh equity LTCG exemption on the first ₹1.25 lakh of gains — claim it explicitly in Schedule 112A.

Filing deadline

For individuals not subject to audit, ITR-2 is due by 31 July of the assessment year. Penalty under Section 234F applies for late filings; interest on tax due under Sections 234A/B/C applies from 1 April of the AY.