ITR filling for Buyback
This query is : Resolved
23 July 2024
I am filling out ITR 3. I have earnings from the stock market (no intraday, no F&O), and some of these are from stock buybacks. Are these earnings (buyback) mandatory to show in the ITR? If yes, how and where should I show them?
23 July 2024
Yes,
Taxable part under Schedule CG
Exempted part under Schedule EI.
No need to file ITR 3 if no business income or F&O or Intraday to be reported.
Taxable part under Schedule CG
Exempted part under Schedule EI.
No need to file ITR 3 if no business income or F&O or Intraday to be reported.
25 July 2024
Okay, then in Schedule CG, should I exclude buyback earnings where it needs to be mentioned in Schedule EI?
For example, suppose STCG:
- Stock A: Buy value - 100; Sell value - 150 (Normal delivery order)
- Stock B: Buy value - 80; Sell value - 120 (Buyback)
Now in Schedule CG, Section 111A:
What will be the Full value of consideration and the Cost of acquisition without indexation?
For example, suppose STCG:
- Stock A: Buy value - 100; Sell value - 150 (Normal delivery order)
- Stock B: Buy value - 80; Sell value - 120 (Buyback)
Now in Schedule CG, Section 111A:
What will be the Full value of consideration and the Cost of acquisition without indexation?
25 July 2024
Cost of acquisition is purchase value
Full value of consideration is Sell Value.
Full value of consideration is Sell Value.
25 July 2024
Ok, I understand it, but I am confused about the buyback shares.
As you mentioned before, buyback earnings should be included in the Exempted part under Schedule EI.
So, should I add this amount under Schedule CG or exclude it?
That's why I gave an example last time with two types of sales (Delivery & Buyback).
As you mentioned before, buyback earnings should be included in the Exempted part under Schedule EI.
So, should I add this amount under Schedule CG or exclude it?
That's why I gave an example last time with two types of sales (Delivery & Buyback).
25 July 2024
Exempted income or the transaction is not included in schedule CG..
25 July 2024
Ok, then is there any problem if I fill it out like this?
For example, suppose STCG:
Stock A: Buy value - 100; Sell value - 150 (Normal delivery order)
Stock B: Buy value - 80; Sell value - 120 (Buyback)
In Schedule CG, Section 111A:
Full Value of consideration - 150 & Cost of acquisition - 100,
and in Schedule EI, 3) Other exempt income - 40
FYI, I have to file ITR 3 because I have freelance income.
For example, suppose STCG:
Stock A: Buy value - 100; Sell value - 150 (Normal delivery order)
Stock B: Buy value - 80; Sell value - 120 (Buyback)
In Schedule CG, Section 111A:
Full Value of consideration - 150 & Cost of acquisition - 100,
and in Schedule EI, 3) Other exempt income - 40
FYI, I have to file ITR 3 because I have freelance income.
25 July 2024
Yes, this part is correct...
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