I have a short-term loss of ₹1 lakh under share options for this year. Can I show this in my income-tax return? If yes, what is the procedure?
It is presumed that you have sold shares received by you from your employer under the Employees’ Stock Option Plan (Esop) on which perquisite tax was paid by you at the time of allotment of shares to you. Further, the shares are presumed to be Indian shares.
As per the tax return forms issued for FY19, you are required to fill ITR-2 to report this loss.
Where such shares are listed on a recognized stock exchange in India and securities transaction tax (STT) has been levied on the sale, you are required to fill the details in Schedule CG-Tab A2—“from sale of equity share or unit of equity oriented Mutual Fund (MF) or unit of a business trust on which STT is paid under Section 111A or 115AD(1)(ii) proviso (for FII)”.
Where the shares are not listed on a recognized stock exchange in India, you are required to fill the details in Schedule CG-Tab A5—“from sale of assets other than at A1 or A2 or A3 or A4 above”.
The net loss (which cannot be adjusted in the same FY) can be carried forward for eight future tax years (subject to prescribed conditions), which will be auto-populated under Schedule CFL.
Will long-term capital gains (LTCG) from the sale of gold bar (held for over 36 months) qualify for deduction if the proceeds are used to buy new gold ornaments?
As per the Income-tax Act, 1961, a roll-over exemption can be sought against LTCG on the sale of gold bars by investing in the following specified assets, subject to the prescribed conditions and timelines:
* Under Section 54F of the Act, by investing the net sale consideration in a new residential house situated in India; and
* Under Section 54EE of the Act, by investing LTCG in units of specified notified fund.
However, there is no provision in law to provide the corresponding exemption for reinvestment in gold ornaments.
Accordingly, reinvestment in gold ornaments shall not be eligible for exemption and you would be required to discharge appropriate LTCG tax as per the provisions of the Act.
Parizad Sirwalla is partner and head, global mobility services, tax, KPMG in India. Queries and views at [email protected]