Capital Gains in ITR 2026: Are You Filing It Right?

If you sold shares, mutual funds, or property in FY2025-26, you must report capital gains in your ITR by July 31, 2026. Wrong reporting can mean tax notices, penalties, or missed exemptions. Here's what to know.

Here's what happened: For AY 2026-27, capital gains from equity shares and equity mutual funds sold after July 23, 2024 attract 12.5% LTCG tax beyond ₹1.25 lakh, up from the earlier 10% rate.. Short-term capital gains on listed equity and equity MFs are now taxed at 20% (revised from 15%) if sold within 12 months of purchase.. Property and debt fund gains use different holding periods and tax rates — property LTCG is 20% with indexation removed for sales after July 23, 2024 under the new rule..

What you should do: Download your Capital Gains Statement from your broker, Zerodha Console, Groww, or CAMS/KFintech before you open the ITR form — without it, you cannot fill Schedule CG correctly.. Choose the right ITR form: salaried investors with capital gains must use ITR-2, not ITR-1; business owners with trading income need ITR-3.. Cross-check your Annual Information Statement (AIS) on the Income Tax portal against your own records — mismatches trigger automated notices from the tax department..

You can harvest up to ₹1.25 lakh in LTCG from equity every financial year completely tax-free — sell and repurchase before March 31 to reset your cost basis and permanently reduce future tax.