Calculating long-term capital gains tricky, service providers can help

The government started imposing a 10 per cent long-term capital gains tax (LTCG) on sale of listed stocks and equity mutual funds after one year from FY19

For the first time, equity investors will have to declare details of stocks and mutual funds sold in their income tax returns. And calculating the gains/losses is a tricky process, and quite different from other instruments. It is especially complicated if you have received bonus shares or a systematic withdrawal plan (SWP) in a mutual fund.

In the previous financial year (FY 2018-19), the government started imposing a 10 per cent long-term capital gains tax (LTCG) on sale of listed stocks and equity mutual funds after one year. While capital gains of Rs 1 lakh are tax-free, any amount above that