How to file STCG in ITR for PPFAS equity-scheme STCG

From WebNotes, a public knowledge base. Last updated 17 May 2026. Reading time ~6 min. Level: Intermediate.

Key facts

Applicable ITR	ITR-2 or ITR-3
Schedule	Schedule CG, Short Term Capital Gains section, Section 111A row
Reporting granularity	Aggregate amount per rate period (no scrip-wise row entry required for STCG)
FY 2024-25 specifics	Two rate rows: pre-23-July-2024 (15 per cent) and post-23-July-2024 (20 per cent)

This guide covers reporting Section 111A short-term capital gains (STCG) from PPFAS Mutual Fund equity-oriented scheme redemptions in ITR-2 or ITR-3 Schedule CG. Unlike Schedule 112A (which requires scrip-wise row entry for LTCG), STCG reporting is aggregate: a single line item for the FY’s total Section 111A STCG. The Finance Act 2024 increased the rate from 15 per cent to 20 per cent for transactions on or after 23 July 2024, so FY 2024-25 requires a two-period split.

Step-by-step procedure

Step 1: Download the PPFAS capital-gains statement

Generate the FY-specific capital-gains statement from SelfInvest (see how to download a PPFAS capital-gains statement for ITR). The statement separates STCG and LTCG by transaction.

Step 2: Identify the aggregate STCG for the FY

From the statement’s Section B (Section 111A STCG), sum the STCG across all PPFAS scheme redemptions. For FY 2024-25, also identify which transactions occurred before 23 July 2024 and which on or after.

For most retail investors, the STCG aggregate may be modest (depending on whether short-term redemptions occurred). For active rebalancing or switch activity, the STCG can accumulate.

Note: STCG from PPFAS plus STCG from other equity-oriented MFs (HDFC, ICICI, etc.) plus STCG from listed-equity stocks all aggregate under Section 111A. The ITR Schedule CG asks for the total Section 111A STCG, not just the PPFAS portion.

Step 3: Log in to the Income Tax e-filing portal

Visit incometax.gov.in. Log in with PAN and password. Choose the relevant AY and ITR form (ITR-2 for most retail).

Step 4: Navigate to Schedule CG then Section 111A

In the ITR:

Navigate to Schedule CG.
Find the Short Term Capital Gains section.
Within STCG, find the Section 111A sub-section. This is the row for equity-oriented MF and listed-equity STCG with STT.

For FY 2024-25 ITR, the section may have two rows:

Section 111A STCG taxable at 15%: For transactions before 23 July 2024.
Section 111A STCG taxable at 20%: For transactions on or after 23 July 2024.

For FY 2025-26 ITR (to be filed in 2026), only the 20% row applies.

Step 5: Enter the aggregate STCG amount

Enter the aggregate STCG amount for each applicable rate period:

Sum of Section 111A STCG across all sources (PPFAS plus other AMCs plus listed equity).
For FY 2024-25: split between the two rate periods.

Unlike Schedule 112A, no scrip-wise row entry is required for STCG. The ITR utility computes the tax (15% or 20%) on the entered amount and adds cess and surcharge as applicable.

Step 6: Verify against AIS

The Income Tax department’s AIS may include STCG entries from AMC reporting (Section 111A is captured in the SFT framework for transactions above certain thresholds). Cross-check:

AIS-reported STCG total versus the PPFAS-issued statement plus other AMC statements.
Material differences require AIS feedback at the Income Tax portal.

Step 7: Apply set-off rules if applicable

Section 111A STCG can be set off against short-term capital losses from the same FY:

STCL from other equity MFs, listed equity (with STT), debt-MF redemptions (post Finance Act 2023), or real-estate sales held under 24 months can be set off.
The Schedule CG provides set-off entries.
Unused STCL is carried forward for 8 years to set off future STCG. The Schedule CFL (Carry Forward of Losses) captures carry-forward.

Important nuance: Long-term capital gains (LTCG) cannot be set off by STCL, but STCG can absorb STCL. The ordering of set-off matters for tax optimisation; consult a tax adviser for complex situations.

Step 8: Submit the ITR

After all Schedule CG entries are populated:

Run Validate in the ITR utility.
Verify the Schedule CG summary matches expectations.
Submit the ITR.
E-verify within 30 days.

What can go wrong

Wrong rate row used for FY 2024-25: A transaction on 25 July 2024 belongs in the 20% row, not the 15% row. Misclassification is a common error during the transition FY. The PPFAS statement explicitly tags each transaction with its applicable rate.
Aggregate amount mismatch with AIS: AIS aggregates from AMC SFT submissions. Differences from the PPFAS-issued statement should be investigated; the PPFAS statement is the AMC’s primary source.
Section 111A versus regular slab STCG confusion: Section 111A is for equity-oriented MF and listed-equity STCG with STT, at the special flat rate. Non-STT STCG, debt-MF post-Finance-Act-2023 STCG, and real-estate STCG within 24 months are taxed at slab rates, not Section 111A. These have separate rows in Schedule CG.
Set-off ordering: STCL is first set off against STCG, then against LTCG, then carried forward. Some tax-software automates this; manual computation requires care.
Carry-forward unused losses not tracked: Carry-forward losses must be reported in the year of generation (Schedule CFL) and consumed in subsequent years. Failure to report in the generation year forfeits the carry-forward.
Cess and surcharge on top of 20%: The base rate is 20% (or 15% for pre-23-July-2024). Health and Education Cess of 4% brings the effective rate to ~20.8% (or ~15.6%). Higher surcharge applies for higher income brackets.
Basic exemption limit set-off: For resident individuals whose other income is below the basic exemption limit, the unused basic exemption can be applied against STCG to reduce tax. This is a valuable tax optimisation for low-other-income filers.
STCG from debt-MF (post 1 April 2023) misclassified: Liquid Fund and Conservative Hybrid gains for investments made post 1 April 2023 are taxed at slab rates, not Section 111A. Use the slab-rate STCG row, not Section 111A row.
Switch redemption legs missed: Switches generate STCG (or LTCG) on the redemption leg. The PPFAS statement captures these; ensure the ITR aggregate includes switch-out events.
STT applicability: Section 111A requires STT. For direct AMC redemptions, the AMC pays STT; the investor is deemed to have met the requirement.

How to compute STCG on PPFAS equity schemes covers the underlying computation
How to download a PPFAS capital-gains statement for ITR is the prerequisite document
How to file Schedule 112A in ITR for PPFAS LTCG covers the parallel LTCG filing
How to compute slab-rate tax on PPFAS Liquid Fund covers post-Finance-Act-2023 debt-MF taxation
How to download AIS and TIS for PPFAS reconciliation covers the AIS download
The reference article on STCG on equity mutual fund (Section 111A) covers the broader framework

External references

References

Income Tax Act, 1961, Section 111A.
Finance Act, 2024 (STCG rate change to 20%, effective 23 July 2024).
CBDT circulars on Section 111A reporting in ITR.
Income Tax e-filing portal ITR-2 and ITR-3 utility documentation.
PPFAS Mutual Fund, Scheme Information Documents.
SEBI Master Circular for Mutual Funds, 22 May 2024.
CBDT Schedule CG and Schedule CFL framework.
CAMS Investor Services capital-gains-statement methodology.
PPFAS investor desk FAQ at amc.ppfas.com/faqs/.
AMFI industry data on capital-gains reporting.

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WebNotes Editorial Team

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Last reviewed: 17 May 2026
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