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Capital gains, computed rather than copied

Every gain is built from the raw transaction upward — acquisition, corporate actions, holding period, classification, rate and schedule — and reconciled back to the statement it came from.

Framework — FY 2025-26 (AY 2026-27)

Classification and rate, by asset class

The Finance (No. 2) Act, 2024 simplified holding periods to two buckets and reset the rates with effect from 23 July 2024. Transfers on either side of that date in FY 2024-25 are governed by different rules; FY 2025-26 sits wholly under the revised regime.

Asset	Long term after	Short-term treatment	Long-term treatment
Listed equity shares and equity-oriented units, STT paid	12 months	20% under section 111A	12.5% under section 112A on gains above ₹1,25,000, without indexation
Other listed securities and units	12 months	Slab rate	12.5% under section 112, without indexation
Unlisted shares, including foreign company shares	24 months	Slab rate	12.5% under section 112, without indexation
Immovable property	24 months	Slab rate	12.5% without indexation; resident individuals and HUFs may compute tax on land or building acquired before 23 July 2024 at 20% with indexation and pay the lower of the two
Specified mutual funds and market linked debentures	Not applicable	Deemed short-term under section 50AA and taxed at slab rate irrespective of holding period	—
Gold, jewellery and other capital assets	24 months	Slab rate	12.5% under section 112, without indexation
Derivatives traded on a recognised exchange	Ordinarily computed as business income, not capital gains; tax audit under section 44AB may apply

Rates alone do not decide a return. Surcharge on capital gains is capped for certain heads, the basic exemption limit may be adjusted against special-rate income for a resident, and the choice of regime affects the slab-rate portion but not the special rates. These interactions are computed on your figures, not assumed.

Method

Ten steps, none of them skipped

The same sequence is followed whether the file has forty transactions or four thousand, so that any figure can be traced back to the document it came from.

Raw transaction data

Contract notes, demat statements, vesting reports and corporate action records captured as received.

Currency conversion

Rate, date, source and governing rule recorded against every foreign currency line.

Cost computation

Acquisition cost, improvement, grandfathered value and perquisite already taxed, applied on a first-in-first-out basis.

Sale computation

Consideration net of transfer expenses, with section 50C or section 50CA implications flagged where relevant.

Gain calculation

Computed per lot rather than in aggregate, so partial disposals remain traceable.

Holding period

Measured from allotment or acquisition date, with the applicable threshold for that asset class.

Classification

Short term or long term, with the section that governs the rate identified.

Tax treatment

Rate, exemption threshold, set-off, carry forward and any exemption claimed under sections 54, 54F or 54EC.

Schedule mapping

Each figure tied to its line in Schedule CG, Schedule CFL, Schedule SI and, where foreign, Schedules FA, FSI and TR.

Reconciliation

Opening plus purchases less sales equals closing; workbook agreed to broker statement, AIS and the return as filed.

Deliverable

What the workbook contains

An Excel file built to be reviewed, not just read.

Structured tables throughout, with totals, and no merged cells
Live formulas rather than pasted values, so a corrected input flows through
Hard-coded figures marked explicitly where a formula is not possible
A dedicated FX rates sheet with the source and date of every rate used
A reconciliation sheet tying broker statement to working paper to return
A references sheet listing the section, rule or circular behind each position

Workbook structure12 sheets

01 Instructions	Scope & how to read
02 Inputs	Client & year
03 Raw transactions	As received
04 FX rates	Rate, date, source
05 Working calculations	Lot-wise
06 Cost calculation	FIFO
07 Sale calculation	Net of expenses
08 Capital gain computation	By section
09 Summary	STCG / LTCG
10 Reconciliation	Statement to ITR
11 ITR reporting	Schedule mapping
12 Supporting references	Section & rule cited

Questions

Capital gains, answered

My broker already gives me a capital gains statement. Why compute it again?

A broker statement is prepared from that broker's own records on that broker's own assumptions. It does not see holdings transferred in from another demat account, off-market transfers, bonus and rights entitlements, corporate actions handled inconsistently, or the cost of shares acquired through an employer plan. It also cannot apply grandfathering where the acquisition predates the account. Where a single broker holds everything and nothing unusual happened, the statement will usually agree with an independent computation — and that agreement is itself worth documenting.

How does grandfathering as on 31 January 2018 work?

For listed equity and equity-oriented units acquired before 1 February 2018, the cost of acquisition is taken as the higher of the actual cost and the lower of the fair market value as on 31 January 2018 and the full value of consideration on transfer. Fair market value for a listed share is the highest quoted price on a recognised stock exchange on 31 January 2018. The rule protects gains that had already accrued before section 112A took effect; it does not apply to unlisted shares or to foreign securities.

Are F&O gains capital gains?

Ordinarily no. Trading in derivatives is expressly excluded from the definition of a speculative transaction where it is carried out on a recognised stock exchange, and the resulting income is normally computed as business income rather than capital gains. That changes the return form, brings in the possibility of tax audit under section 44AB depending on turnover, allows deduction of related expenses, and affects how losses may be set off and carried forward. Turnover for this purpose is computed on a specific basis, not on contract value.

I sold a house and want to claim exemption. What is the timing?

Broadly, section 54 requires purchase of a residential house within one year before or two years after the transfer, or construction within three years, and section 54F applies similar timelines to the consideration where the asset sold is not a residential house. Section 54EC requires investment in specified bonds within six months, subject to a monetary ceiling. Where the investment will not be completed before the due date for filing the return, the unutilised amount must be deposited under the Capital Gains Account Scheme by that date to preserve the exemption. Missing that deposit is a frequent and irreversible cause of exemption being lost.

Client experience

In their words

Reviews from clients of the practice, published as given and with consent. First names only. Grammar has been tidied where needed; nothing has been added, removed or reworded in substance.

Foreign assets & notice

I had issues with my ITR filing and also received a notice regarding foreign assets declaration, which was quite stressful. I approached Mr. Mahendra, and he handled everything very professionally and efficiently. He carefully reviewed my already filed ITR, rectified the mistakes, and guided me step by step in correctly declaring the foreign assets. He is very knowledgeable, responsive and clear in his explanations, which gave me a lot of confidence and peace of mind throughout the process. Highly recommend him to anyone looking for reliable support for ITR filing, rectifications, or handling income tax notices.

Jyoti

ITR filing

Best experience in filing ITR so far. He takes full ownership end to end in filing ITR. He does all things in the legal way and no fake proofs are entertained, in order to be compliant with income tax law. I strongly recommend the services of Prisha Tax Consulting.

Ritesh

Year on year filing

For a few years now, Prisha Tax Consulting has been helping me file my Income Tax Return. After I gave them my details, goals and plans just once, they have consistently reminded me to file without ever needing that information again. The process is so smooth that all I have to do is give them the go-ahead.

Dr. Swathi

Filing & refund

Mahendra Sir was extremely helpful in guiding me through the process of filing my Income Tax Return. He explained everything clearly and ensured that the filing was done in a genuine and accurate manner. Thanks to his guidance, I received my tax refund within an unexpectedly short time. Overall, it was a great and smooth experience. Highly recommended!

Shashidhara

Filing & advisory

After consulting with Mahendra for my income tax filing, I can confidently say that he is a knowledgeable and reliable person for this job. He has been very professional and timely with his services. He helped me understand the process better. He is also up to date with all the latest laws and rules regarding tax filing. Highly recommend him.

Satya

First consultation

I came to know about Mr. Mahendra Sir through my neighbour. In my first meeting itself I had seen his deep expertise associated with taxes. He educated me with all my queries and had solved my problems. He is a very professional and trustworthy person.

Baskar

Tax notice resolved

Mahendra from Prisha Tax Consulting was extremely helpful in resolving my pending tax issue, which had been pending for some time. He worked on a proper response and helped me submit it at the Income Tax office, which got cleared. Thanks Mahendra!

Ganesh

Four-year client

I have had a great experience with Mahendra from Prisha Tax Consulting for the last four years. He charges minimal fees for filing the returns and guides very well on tax saving options. He is very knowledgeable, approachable and a very professional financial advisor. I look forward to engaging with him for all my future requirements.

Sachin

Transparency

Thank you, Mahendra, for assisting us in filing our ITR. I especially appreciated the transparency throughout the entire process and the detailed information shared with us. This not only helped us understand our taxation better but also provided valuable advisory insights. Your expertise and clear communication made a complex process much simpler for us.

Manik

Tax saving advice

My experience with Mahendra from Prisha Tax Consulting has been extremely satisfying. He is very knowledgeable and does not just file the ITR with the information provided to him, but also guided me on the various sections under which I can invest for tax benefits.

Rahul

Ongoing compliance

Timely submission, careful calculations and regular follow-ups — these attributes make Prisha Tax Consulting one of the more reliable firms.

Avinash

Multi-year client

Have been getting my ITR filed by Prisha Tax Consulting for the last few years. Very reliable service. Mr. Mahendra gave really good advice related to tax saving.

Debjoy

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Tell us the facts. We will tell you the position.

Send your Form 16, broker statements, vesting reports and Form 26AS / AIS. You will get a written scoping note setting out the schedules involved, the documents required and a fixed fee before any work begins.

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