Schedule CG in ITR: How to Report Capital Gains for FY 2025–26 — Step-by-Step Guide
Filing capital gains in ITR is mandatory under Schedule CG. It ensures correct reporting of short-term and long-term capital gains (STCG/LTCG) from various sources, including: Equity shares & securities Mutual funds & ETFs Real estate & property s...
Filing capital gains in ITR is mandatory under Schedule CG. It ensures correct reporting of short-term and long-term capital gains (STCG/LTCG) from various sources, including:
Equity shares & securities
Mutual funds & ETFs
Real estate & property sales
Cryptocurrency & other digital assets
FY 2025–26 update: Enhanced reporting for property and digital assets, along with new exemptions and indexing rules, makes it essential to accurately fill Schedule CG.
Who Should File Schedule CG?
Schedule CG must be filed by:
Individuals who sold capital assets during FY 2025–26
NRIs with capital gains from Indian assets
Taxpayers claiming exemptions under Sections 54, 54F, 54EC, etc.
Note: Even if gains are nil or exempt, disclosure is necessary to avoid future queries or notices.
Types of Capital Gains
| Type | Holding Period | Tax Rate (FY 2025–26) | Examples |
| Short-Term Capital Gains (STCG) | <12 months for equity; <36 months for property | 15% (equity) / Slab rate (property) | Shares, property, debt funds |
| Long-Term Capital Gains (LTCG) | ≥12 months for equity; ≥36 months for property | 10% (equity above ₹1 Lakh) / 20% with indexation (property) | Shares, property, mutual funds |
Step-by-Step Guide to Filling Schedule CG
Step 1: Identify Capital Assets Sold
Equity shares, mutual funds, property, crypto
Track purchase date, sale date, and cost
Step 2: Calculate Gains
STCG = Sale Price – Purchase Price – Expenses
LTCG = Sale Price – Indexed Cost – Expenses
Indexed Cost = Purchase Price × (CII of year of sale / CII of year of purchase)
Use CII (Cost Inflation Index) FY 2025–26: 348
Step 3: Fill Schedule CG in ITR
| Section | Details to Fill |
| Part A | Asset Type: Equity, property, mutual funds, crypto |
| Part B | STCG: Enter taxable gains under respective sections |
| Part C | LTCG: Enter taxable gains, exemptions claimed (54, 54F, 54EC) |
| Part D | Other Information: Sale consideration, cost of acquisition, indexation, exemptions |
Example: Reporting Capital Gains
Scenario 1: Sale of property
Purchase Price: ₹50,00,000 (FY 2015–16)
Sale Price: ₹80,00,000 (FY 2025–26)
Indexed Cost = 50,00,000 × (348 / 254) = ₹68,50,000
LTCG = 80,00,000 – 68,50,000 = ₹11,50,000
Schedule CG Entry:
| Asset Type | Purchase Price | Sale Price | Indexed Cost | LTCG |
| Property | 50,00,000 | 80,00,000 | 68,50,000 | 11,50,000 |
Scenario 2: Sale of listed shares
Sale Price: ₹5,00,000
Purchase Price: ₹4,00,000
STCG (equity) = 5,00,000 – 4,00,000 = ₹1,00,000
Common Mistakes to Avoid
Omitting STCG or LTCG from mutual funds or crypto
Using purchase price instead of indexed cost for LTCG
Not claiming exemptions (54, 54F, 54EC) correctly
Reporting in foreign currency without conversion
Missing documentation of expenses related to asset sale
Tax Planning Tips
Use exemptions: Section 54, 54F, 54EC, 54B for property
Offset gains: Adjust LTCG against STCG from other sources
Keep documentation: Sale deeds, purchase invoices, mutual fund statements
Plan sale timing: Long-term holding reduces tax liability
Seek expert help: WonderTax provides end-to-end Schedule CG guidance
FAQs
Q1: Is Schedule CG mandatory if gains are exempt?
Yes, disclosure is mandatory even for exempt gains.
Q2: How to calculate indexed cost for LTCG?
Indexed Cost = Purchase Price × (CII of year of sale / CII of year of purchase)
Q3: Are crypto gains reported in Schedule CG?
Yes, all digital assets are reported under STCG or LTCG as applicable.
Q4: Can I claim exemptions for multiple properties?
Yes, exemptions under Sections 54, 54F, etc., can be claimed on eligible property sales.
Internal Links
How to File ITR Online
Capital Gains Tax Explained
Tax Saving on Property Sale
Conclusion
Correct reporting of Schedule CG in ITR ensures:
Compliance with Income Tax laws
Optimized tax liability
Avoidance of penalties and notices
WonderTax provides expert support for STCG, LTCG, exemptions, and crypto asset reporting to ensure 100% accurate filing for FY 2025–26.
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STCG & LTCG calculations
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