STCG and LTCG Taxation

@TeamQuicko Can someone answer this question?

Hello @prasidhi,

You would need to submit a photograph, PAN and proof of address to the authorized bank for opening capital gains account.

With regards to your second question, you can claim the exemption by purchasing new or used property.

Thanks @Devarsh_Jagad.

I visited local SBI branch. They were asking for some proof for the money. Is this required?


Hi @prasidhi

Any proof regarding sale of foreign unlisted shares or previous years ITR should suffice.

I have a carry forward loss of 14 Lakhs in equity short term from 2 years ago. Can it be set off against profit of 14 lakhs in f&o this year? Or can it be set off against profit in Debt mutual fund short term/Gsec short term/Sgb short term?

Hi @Hardik_Shah

If you had reported your loss in the ITR in the year in which the loss occurred, you can set off and carry forward. If not, you will not be able to set off and carry forward.

However, as per the rules, a short-term capital loss can be set off against short-term or long-term capital gains.

You can read about the Set Off and Carry Forward of Losses under Income Tax - Learn by Quicko

Hi @Devarsh_Jagad

Long Term asset sales happened in Aug-22. By when should the gains be deposited in Capital Gains account?



Can someone please reply?


Hi @prasidhi

The capital gains from the sale of asset should be deposited in the CGAS.
A taxpayer needs to deposit the funds in the CGAS till the time he/she plans to invest in the specified investment as per the relevant section.
You can read more about it here.


Is it Ok to deposit the proceeds before filing the returns for FY 2022-23?


Hi @prasidhi

Yes, it is fine to deposit the proceeds in the CGAS before you file your return for claiming exemption under section 54F.

Continuing the discussion from STCG and LTCG Taxation:

Can angone please guide about LTCG on commercial vehicle?
Here I bought Commercial vehicle in 2018 at 16 lakhs.
Iam selling it now in 2023 at 13 lakhs.
So, how tax calculations would apply here?
Thank you in advance

Hi @Shiv_Sujanian

Apologies for the late response.

The WDV (written down value) shall be treated as the actual cost of the asset.
WDV = Cost - Depreciation

Here, the taxes would be implied on the difference of your selling cost, (₹13 lakhs) and WDV.
The amount would be treated as STCG (short-term capital gains) which is taxable at slab rates.

Hope this helps.

Hi team,

In FY22, I had LTCG of around 95k. Since it was less than 1L, I thought I need not report. Even though I sold it on 30Mar 2022, in my AIS, it is shown as Apr 4. What do I do now? Can I report it with this year’s LTCG and pay tax on it? Or any penalty to be paid? What is the solution/rectification? Thanks!

Hi @M_Sridhar

As per Section 112A, LTCG up to 1 lakh is exempt. However, if you have a total income above the basic exemption limit, you must file ITR and report LTCG. You can consider the actual sale date and report LTCG in FY 2022. You can do the below 2 things:

  1. Submit feedback on the AIS portal (Denying the date of sale).
  2. File an updated ITR for FY 2021-22 (Including LTCG).

You can get an expert assistance on above through MEET by Quicko.

Hope this helps.


If the salary income is zero. What is the tax implications on capital gains from securities.
Equity and debt ?

Again when salary income is zero,
What is the tax implication on gains from international equity funds ?

Hi @rkumarblr

If you have no salary income, and just capital gains from securities, you will be required to file ITR 2.
Capital gains from securities depend upon the period of holding.

Taxation on debt funds varies depending on the different types of funds. Short-term investments (less than 3 years) are taxed at slab rate and long-term investments (more than 3 years) are taxed at 20% with indexation. Returns can be income as interest or capital appreciation/depreciation.

Read more about Income Tax on Bonds & Debentures - Learn by Quicko, Tax on Mutual Funds in India - Learn by Quicko, and Income Tax on Equity Share Trading - Learn by Quicko.

Hope this helps.

Thank you for the quick and clear response.

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In 2009, I brought a house site for 18 lakhs and sold it 60 lakhs in January 2023. So, I earned some long term capital gains(LTCG) on this sale after applying Cost Inflation Index(CII). The site is brought and sold thru the broker and paid the brokerage on both times. In 2012, I built couple rooms in the same site for security person to look after it from occupying others.

After going thru the income tax website, I can deduct both brokerage fees and construction cost but I don’t have any receipts for this transactions.
So, can I claim this costs in filling without any proof?

Also, can I open a capital account for a portion of sold amount( i.e. not 60 lakhs)? So, I can avoid income tax on Capital gains and also planning to buy a plot in couple years.

Can someone please address this questions?

Thank you

Hi @rr9876

While filing your income tax return, you are not required to submit any proof for brokerage fees or construction costs. However, it is important to have maintained bank transactions for these expenses.

In case, ITD requests verification in the future, you will need to provide supporting proof to substantiate your claims.

Regarding the capital gains from the sale of your property, if you do not want to invest the amount of ₹60 lakhs at present, you have the option to transfer it to the Capital Gains Account Scheme (CGAS) and then may use the funds for the future use. However, there is a certain limit to the period to time to keep funds in particular scheme.