How to fill Schedule CG for mutual fund capital gains
Filling Schedule CG is the most complex tax section for retail investors who held MFs in the FY. The structure depends on equity vs debt classification and holding period; ITR utility provides line-level prompts but errors are common.
Conflict-of-interest disclosure. This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with any tax service or AMC. No affiliate commission is earned. For complex multi-folio cases, consult a Chartered Accountant.
Step-by-step procedure
See the procedure infobox above.
Schedule CG section map
| Section | Use for |
|---|---|
| A1 | STCG on equity MF (Section 111A) |
| A2 | LTCG on equity MF (Section 112A) |
| A3 | Capital gain on transfer of land / building |
| A4-A6 | Specific other capital gains |
| B1 | STCG other than Section 111A (debt MF post FA 2023) |
| B2 | LTCG other than Section 112A (debt MF pre FA 2023, > 3 years) |
For most retail MF investors: only A1, A2, B1 are typically relevant.
A2 transaction-level data (Section 112A)
For each equity MF LTCG transaction:
| Field | Source |
|---|---|
| ISIN | AMC capital gains statement |
| Name of share / unit | Scheme name |
| Number of shares / units | Units redeemed |
| Sale price per unit | Average sale NAV |
| Full value of consideration | Total sale value |
| Cost basis (post grandfathering) | Original cost + grandfathering adjustment |
| FMV per unit as on 31-1-2018 (if pre-2018) | Grandfathering NAV |
| Long-term capital gain | Sale - Cost |
This level of detail is mandatory per CBDT format. AMC statements provide all needed inputs.
B1 entries (debt MF post FA 2023)
For each debt MF redemption with post 1 April 2023 cost:
| Field | Detail |
|---|---|
| Type of asset | “Unit of debt-oriented mutual fund” |
| Sale consideration | Redemption proceeds |
| Cost of acquisition | Original cost |
| Capital gain | Sale - Cost |
| Tax rate | Investor’s slab |
No indexation. No LTCG eligibility.
B2 entries (debt MF pre FA 2023, > 3 years)
For debt MFs acquired before 1 April 2023, held over 3 years:
| Field | Detail |
|---|---|
| Sale consideration | Redemption proceeds |
| Cost of acquisition | Indexed cost using CII |
| Indexation benefit | (CII current / CII year of purchase) × Original cost |
| LTCG | Sale - Indexed Cost |
| Tax rate | 20% with indexation |
Section 48(ii) provides for indexation; CII published annually by CBDT.
Auto-population
The IT department’s AIS (Annual Information Statement) auto-populates many capital gains. Verify against AMC statement before relying on AIS values.
Aggregating multiple folios
For investors with 10+ folios across multiple AMCs:
- Use spreadsheet to consolidate.
- Total LTCG, total STCG, total debt gains per category.
- Cross-check with CAS and Form 26AS.
- Submit aggregated totals (or transaction-level per CBDT requirement).
See also
- How to report MF capital gains in ITR
- How to choose ITR form for MF
- How to apply grandfathering rule LTCG (MF)
- How to set off MF capital losses
- How to carry forward MF capital losses
- How to claim TDS on MF dividend in ITR
- How to reconcile Form 26AS with MF transactions
- How to fill Schedule OS for MF dividend
- How to handle foreign MF in ITR
- How to handle switch tax in ITR
- How to handle SWP tax in ITR
- How to compute debt MF tax post Finance Act 2023
- How to revise ITR (MF)
- How to exit MF tax-efficiently
- Section 112A (LTCG)
- Section 111A (STCG)
- Section 50AA (debt MF taxation)
- Section 48 (cost computation)
- Cost Inflation Index (CII)
- Grandfathering rule for LTCG
- Equity mutual fund taxation in India
- Debt mutual fund taxation (Finance Act 2023)
- Capital gains statement (MF)
- Form 26AS
- Annual Information Statement (AIS)
- SIP tax FIFO
- Mutual funds in India
- AMFI
- SEBI
External references
References
- Income Tax Act, 1961, Sections 47, 48, 50AA, 111A, 112A.
- Finance Act, 2023 and Finance Act, 2024.
- CBDT notifications on Schedule CG format.
- Income Tax ITR-2 utility documentation.