Mandatory transaction-wise reporting for LTCG on listed shares + equity MFs. ISIN + qty + sale + cost + FMV Jan 31, 2018 (grandfathered). Schedule 112A in ITR-2/3.
SCHEDULE 112A = MANDATORY scrip-wise (transaction-wise) reporting of LTCG from listed equity shares + equity mutual funds. APPLIES TO: (1) LTCG above ₹1.25L exemption from listed shares. (2) Equity mutual funds. (3) ITR-2 (capital gains) or ITR-3 (business income + capital gains). (4) EACH TRANSACTION separately reported. INFO REQUIRED PER SCRIP: (1) ISIN code. (2) Name of share/MF. (3) Number of units. (4) Sale value. (5) Cost of acquisition. (6) Cost of acquisition with indexation (if applicable). (7) Sale date.
FOR EACH SHARE/MF SALE: (1) ISIN code (12-digit ID). (2) Quantity. (3) SALE consideration (sale price × qty). (4) COST of acquisition. (5) FAIR MARKET VALUE on January 31, 2018 (for grandfathered shares — pre-Feb 2018 purchase). (6) SECTION 55(2)(ac) applies: higher of actual cost OR FMV on Jan 31, 2018 (for grandfathered). (7) LTCG = sale - cost. PARTIAL SALE: lot-by-lot tracking (FIFO method). DIVIDEND REINVESTMENT: separate cost basis per reinvestment date. CRITICAL: maintain detailed transaction records.
GRANDFATHERING RULE for pre-Feb 2018 shares: (1) Shares BOUGHT before Feb 1, 2018: cost = max(actual cost, FMV on Jan 31, 2018). (2) PROTECTS gains made before LTCG re-introduction. (3) EXAMPLE: TCS bought 2015 at ₹2,000. FMV Jan 31, 2018 ₹3,000. Sold 2026 at ₹5,000. Cost for LTCG calc = ₹3,000 (higher of actual + FMV). LTCG = ₹2,000 per share. Without grandfathering: LTCG would be ₹3,000. SAVED ₹1,000 LTCG taxable per share. CRITICAL: maintain Jan 31, 2018 FMV records for older holdings.
TYPICAL WORKFLOW: (1) DOWNLOAD broker reports (Zerodha, Groww, etc.) with realized capital gains statement. (2) IMPORT into tax software (ClearTax, Tax2Win, ITR-Verse, MyITReturn). (3) AUTO-FILL Schedule 112A from broker data. (4) RECONCILE with AIS + Form 26AS. (5) GRANDFATHERING auto-calculation for old holdings. (6) DOUBLE-CHECK each entry. (7) ITR submission. SUPPORTED EXCHANGES: NSE, BSE, MCX (commodities). MULTIPLE BROKERS: consolidate all broker reports + manually combine if software doesn't auto-merge. CRITICAL for accurate ITR.
PLANNING STRATEGY: (1) MAINTAIN comprehensive transaction records — buy + sell dates, quantities, prices. (2) GRANDFATHERED holdings: capture Jan 31, 2018 FMV via broker historical data. (3) USE TAX SOFTWARE for automation (manual error-prone with 50+ transactions). (4) RECONCILE with broker P&L statement. (5) CHECK AIS for discrepancies. (6) BROKER REPORTS may differ — use ITR consistent broker data. (7) MUTUAL FUNDS: same scrip-wise requirement for equity MFs. (8) BUYBACK + RIGHTS + BONUS: tax implications separately. (9) DEMERGER: cost allocation between resultant entities. (10) ENGAGE CA if > ₹50L gains or complex holdings. SCHEDULE 112A errors common — major source of ITR notices.