ITR-ready capital gains statement for mutual funds
The ITR-ready capital gains statement for mutual funds is a tax computation document generated by Registrar and Transfer Agents (RTAs) – principally CAMS and KFintech – as well as by the joint portal MFCentral, that calculates the taxable capital gain or loss arising from mutual fund redemptions during a financial year. The statement applies the first-in, first-out (FIFO) method mandated under Indian income-tax rules, segregates gains into short-term capital gains (STCG) and long-term capital gains (LTCG), and presents the output in a format aligned with Schedule CG of ITR-2 or ITR-3. Investors use this document as the primary tax computation input when filing their annual income-tax return.
Unlike the broader CAMS/KFin capital gains statement (which may cover any date range and is used for general reference), the ITR-ready statement is specifically parameterised for a financial year (1 April to 31 March) and provides the net STCG and LTCG figures that map directly to the ITR schedule.
Regulatory and legal framework
Sections 111A and 112A of the Income Tax Act
Capital gains from mutual fund units are taxed under:
- Section 111A: STCG on equity and equity-oriented funds (units held for 12 months or less) – taxed at 20% from FY 2024-25 onwards (raised from 15% by Finance Act 2024).
- Section 112A: LTCG on equity and equity-oriented funds (units held for more than 12 months) – taxed at 12.5% on gains exceeding Rs 1.25 lakh per year from FY 2024-25 (raised from 10% on gains exceeding Rs 1 lakh by Finance Act 2024).
- Section 112: LTCG on debt and other non-equity funds (units held for more than 24 months under the pre-April 2023 regime) – taxed at 20% with indexation.
- Finance Act 2023 (Section 50AA): All gains on debt mutual fund units purchased on or after 1 April 2023 are taxable as short-term capital gains (ordinary income), regardless of holding period. This removed the LTCG benefit for new debt fund purchases.
FIFO rule
The Income Tax Act does not explicitly specify FIFO for mutual fund units, but CBDT guidance and consistent judicial interpretation treat each SIP instalment and each lump-sum purchase as a separate lot, with redemptions consuming the earliest-purchased lots first. RTAs apply FIFO in their capital gains computation. The FIFO rule has significant implications for SIP investors who redeem after a long holding period, as earlier lots will have LTCG treatment while more recent lots may still be in the STCG window.
Indexation (for pre-April 2023 debt units)
For debt fund units purchased before 1 April 2023 and redeemed after the requisite holding period, cost indexation (using the Cost Inflation Index notified by CBDT) is available. The ITR-ready statement may or may not compute indexed cost automatically; investors should verify the CII values applied by the RTA against the official CII table before using the figure.
Finance Act 2024 abolished indexation for LTCG on debt mutual funds purchased after 1 April 2023, but grandfathered existing pre-April 2023 holdings. The treatment of units purchased before the cut-off date and redeemed in FY 2024-25 or later requires careful verification.
How to obtain the ITR-ready statement
From CAMS (mycams.com)
- Log in to mycams.com with e-mail OTP authentication.
- Navigate to “Reports” then “Capital Gains / Loss Statement”.
- Select “ITR-specific” or “Financial Year” mode.
- Enter the financial year (e.g., 1 April 2024 to 31 March 2025).
- The system generates the capital gains statement for all CAMS-serviced AMC folios linked to the PAN.
- Download the password-protected PDF (password: PAN in uppercase).
From KFintech (kfintech.com / KFinKart)
- Log in to the KFinKart portal.
- Select “Tax Reports” then “Capital Gains Statement”.
- Choose the financial year period.
- Download the PDF or request an e-mail delivery.
From MFCentral (mfcentral.com)
MFCentral generates a combined capital gains statement covering both CAMS-serviced and KFintech-serviced AMC folios in a single document. This is the recommended approach for investors holding folios with both RTAs, as it eliminates the need to consolidate two separate statements:
- Log in with PAN-based OTP.
- Select “Capital Gains Report”.
- Choose financial year.
- Download combined PDF.
From Zerodha Coin and other platforms
Investors who invested through distributor or direct platforms such as Zerodha Coin, Groww, or Paytm Money can also download capital gains statements from within those platforms. These statements draw from the same RTA data but are presented in the platform’s interface. For completeness, investors should verify that the platform-generated statement matches the RTA-generated statement, particularly for older folios predating the platform relationship.
Structure of the ITR-ready statement
A well-structured ITR-ready statement covers the following sections:
Summary page
- Total STCG (equity and equity-oriented funds, Section 111A)
- Total LTCG (equity and equity-oriented funds, Section 112A)
- Total LTCG (debt funds – pre-April 2023 units – Section 112, with indexation)
- Total gains treated as ordinary income (debt funds purchased post-April 2023 under Section 50AA)
- Net STCG after set-off (if any carry-forward losses are incorporated)
- Dividend income (IDCW payouts), taxable under “Income from other sources”
Transaction-level detail
For each redemption during the financial year, the statement shows:
| Field | Description |
|---|---|
| Scheme name and folio | Identifies the fund and folio |
| Purchase date of each lot | The date the redeemed units were originally purchased (FIFO basis) |
| Purchase NAV | NAV at which units were originally purchased |
| Units redeemed from this lot | Quantity of units redeemed from this particular purchase lot |
| Cost of acquisition | Units redeemed × purchase NAV |
| Indexed cost (if applicable) | Cost adjusted by CII for qualifying debt fund lots |
| Redemption date | Date of the redemption transaction |
| Redemption NAV | NAV at which units were redeemed |
| Sale consideration | Units redeemed × redemption NAV |
| Holding period | Days (or months/years) from purchase to redemption |
| Nature (STCG or LTCG) | Classification based on holding period and scheme type |
| Gain / loss | Sale consideration minus cost of acquisition (or indexed cost) |
Mapping to ITR schedules
Schedule CG in ITR-2 and ITR-3
Schedule CG (Capital Gains) in ITR-2 and ITR-3 has distinct rows for:
- B1: Short-term capital gains on listed securities/units (15% / 20% from FY 2024-25)
- B2: Long-term capital gains under Section 112A (10% / 12.5%)
- B3: Long-term capital gains under Section 112 (without indexation: 10% / 12.5%; with indexation: 20%)
- B5: Any other short-term gains taxed at slab rates (debt fund gains post April 2023)
The ITR-ready statement explicitly labels each gain category to match these rows, reducing the risk of classification errors in the return.
Schedule OS for dividend income
IDCW (dividend) payouts from mutual funds are taxable as “Income from other sources” (Schedule OS) and subject to TDS under Section 194K at 10% where annual IDCW from a single AMC exceeds Rs 5,000. The TDS so deducted appears in Form 26AS and the Annual Information Statement (AIS). Investors should verify that the IDCW figures in the capital gains statement match the AIS/26AS.
Cross-verification with AIS
The AIS independently aggregates mutual fund transactions reported by RTAs through SFT-015. Before filing the ITR, investors should:
- Download the AIS from the Income Tax portal.
- Compare the purchase and redemption figures in the AIS with those in the capital gains statement.
- If discrepancies exist, raise a feedback on the AIS portal (the AIS allows investors to mark data as “Correct”, “Incorrect”, or “Not fully correct”) and contact the AMC or RTA for a correction.
Common discrepancy causes include: folios not linked to PAN, data file upload delays by RTAs, and treatment of switched units (switch-out is a redemption and switch-in is a purchase; if either leg is missing, gains will be miscalculated).
Points of caution
Grandfathering clause (January 31, 2018)
For equity fund units purchased before 31 January 2018 and held beyond 12 months, the cost of acquisition for LTCG computation is the higher of actual cost or the NAV as of 31 January 2018 (the grandfathering date introduced under Section 112A). The ITR-ready statement from CAMS/KFin should incorporate this adjustment. Investors should verify that the “grandfathered cost” is shown in the computation for relevant lots.
Switched units
A switch transaction (from one scheme to another within the same AMC) constitutes a redemption of the source scheme and a fresh purchase in the target scheme. Both legs must appear in the capital gains statement. The holding period of the switched-in units starts from the switch-in date, not from the original purchase date.
Bonus units
Bonus units (units allotted as a dividend reinvestment or as a bonus) have a notional cost of Rs 0 (or Rs 1, depending on the AMC’s treatment). Gains on redemption of bonus units are computed with cost = 0, which maximises the taxable gain. The ITR-ready statement must correctly identify bonus units and apply zero cost.
STP and SWP
Systematic Transfer Plan transfers and Systematic Withdrawal Plan withdrawals are treated as redemptions from the source scheme. FIFO applies to each STP/SWP debit, so if the source fund was started through SIP, each STP debit will consume multiple purchase lots.
Retention
The capital gains statement for each financial year should be retained for the full statutory period – six years from the end of the assessment year, or seven years if the return has been selected for scrutiny. Digital copies stored on a secure cloud service with a backup are recommended.
Worked illustration: SIP redemption with mixed STCG and LTCG
Consider an investor who started a monthly SIP of Rs 5,000 in an equity fund in January 2023 and redeemed all units in February 2025 (25 months of SIP):
- January 2023 to January 2024 instalments (12 months): held for more than 12 months by February 2025 – LTCG (Section 112A)
- February 2024 to January 2025 instalments (12 months): held for less than 12 months by February 2025 – STCG (Section 111A)
- Total redemption: mix of LTCG and STCG lots
The ITR-ready statement will show each of the 24 instalment lots separately, classify each as LTCG or STCG based on the 12-month test, and aggregate them into the summary. The investor cannot simply use the “total investment” and “total redemption value” to compute gains; each lot must be computed separately.
Treatment of reinvested IDCW
If the investor held the IDCW (dividend reinvestment) option instead of the Growth option, each IDCW reinvestment creates a new purchase lot with cost equal to the reinvestment NAV. The holding period of reinvested units starts from the reinvestment date, not the original investment date. This can create dozens of additional lots in a long-standing folio, all with different purchase dates and costs. The ITR-ready statement from CAMS/KFin handles this automatically by tracking each reinvestment as a separate lot.
ITR-ready statement for NRI investors
NRI investors are subject to different TDS rules on mutual fund capital gains. Under Section 195 (read with the relevant DTAA, if applicable), TDS is deducted by AMCs on capital gains at the time of redemption for NRI investors. The ITR-ready statement for NRI investors includes TDS deducted on gains, and the net redemption proceeds are credited after TDS. NRI investors claiming DTAA benefits must ensure their foreign tax residency certificate (TRC) is submitted to the AMC before redemption to obtain the reduced TDS rate.
Using the ITR-ready statement with ITR-2 and ITR-3
Step-by-step mapping
- Download the ITR-ready capital gains statement from MFCentral (for combined CAMS + KFin coverage).
- Open ITR-2 or ITR-3 on the income-tax e-filing portal.
- Navigate to Schedule CG (Capital Gains).
- Under “B1 – Short-term capital gains on transactions on which STT paid”: enter the total STCG on equity/equity-oriented funds from the statement.
- Under “B2 – Long-term capital gains under Section 112A”: enter the total LTCG on equity/equity-oriented funds. Enter the exemption (up to Rs 1.25 lakh from FY 2024-25) in the relevant cell; the system computes taxable LTCG automatically.
- Under “B3 – Long-term capital gains under Section 112” (for grandfathered pre-April 2023 debt fund holdings): enter the indexed LTCG amount.
- Under “B5 – Short-term gains taxable at applicable rates”: enter debt fund gains on post-April 2023 purchased units (treated as ordinary income).
- Cross-check total figures against the AIS.
Pre-filled data accuracy
The ITR portal’s pre-filled Schedule CG data (sourced from AIS / SFT-015) is a starting point only. As noted, it may miss folios below the SFT reporting threshold, apply incorrect grandfathering adjustments, or fail to account for DTAA benefits for NRIs. Always override pre-filled data with your own verified capital gains statement figures.
Special situations
Mutual fund mergers and scheme windup
When a scheme is merged into another scheme (via amalgamation), the original scheme’s units are exchanged for units of the surviving scheme. SEBI’s tax position (confirmed by CBDT guidance) is that such an exchange is not a taxable event. The cost of the original units is carried forward to the new units, and the holding period continues from the original purchase date. The ITR-ready statement should reflect the correct grandfathered cost and holding period for units acquired through a scheme merger.
Where a scheme is wound up (as in the Franklin Templeton wind-ups of 2020), investors receive interim distributions as the portfolio is liquidated. Each distribution is treated as a redemption of a proportionate number of units, and the capital gains or loss is computed accordingly. The ITR-ready statement for the wound-up scheme should be downloaded from the AMC or RTA, as it may not appear automatically in the standard CAMS/KFin capital gains report.
Bonus units
Bonus units allotted by a scheme (rare but occasionally done by older schemes as an alternative to IDCW) have a cost of acquisition of Rs 0 (or Rs 1 in cases where the fund house adopts a nominal cost). Gains on redemption of bonus units are fully taxable as either STCG or LTCG based on the holding period from the bonus allotment date.
See also
- CAMS/KFin capital gains statement
- CAMS mutual fund account statement
- KFintech mutual fund account statement
- Annual Information Statement
- Form 26AS – TDS on MF dividend
- Capital gains tax in India
- Consolidated Account Statement (CAS)
References
- Income Tax Act, 1961, Sections 111A, 112, 112A – Capital gains rates for mutual fund units.
- Finance Act 2023 – Section 50AA, removal of LTCG benefit for debt funds.
- Finance Act 2024 – Revised rates under Section 111A (20%) and Section 112A (12.5%), new Rs 1.25 lakh exemption threshold.
- CBDT Cost Inflation Index notifications (annual, latest for FY 2024-25).
- CAMS capital gains report methodology, mycams.com (accessed May 2026).
- SEBI circular on SFT reporting – SEBI/HO/IMD/DF2/CIR/P/2021/024.