Fact-check notes
Last fact-checked: 2026-05-30
Tax caution: AY 2026-27 covers FY 2025-26 and continues under the Income-tax Act, 1961. New Act, new section and new form references should be verified against official utilities before filing.
Use this page as preparation guidance. A professional should verify the active law year, notification, portal utility and source records before filing or taking a tax position.
What this covers
Section 111A applies to short-term capital gains on specified equity transactions where STT and asset classification determine special-rate taxation.
- STCG on listed equity/equity funds can have a special tax rate when conditions are met.
- Intraday and F&O are not Section 111A capital gains and need separate classification.
- Broker reports should be reviewed for STCG vs LTCG split.
- Loss set-off and carry-forward depend on timely filing.
Who this is for
- Active equity investor.
- Taxpayer with short-term share sales.
- Person confusing intraday/F&O with capital gains.
- CA preparing Schedule CG.
Documents and data to verify
- Broker capital gains statement.
- Trade-wise report for STT and dates.
- AIS securities transactions.
- Prior-year capital loss records.
Common mistakes to avoid
- Treating F&O as capital gains.
- Missing STT condition.
- Wrong date of acquisition/sale.
- Not carrying forward losses due to late filing.
How to proceed
- Confirm the applicable financial year, assessment year, taxpayer type, state and portal status before acting.
- Reconcile portal data with books, AIS/Form 26AS, GST returns, contracts, invoices, bank statements and source documents.
- Prepare a written computation, checklist, filing note or response with assumptions clearly stated.
- Download acknowledgements, challans, workings and evidence after filing or submission.
FAQs
Can WorkIndex help with this?
Yes. Post the facts and documents; relevant experts can quote for filing, advisory, reconciliation, registration, appeal support or ongoing compliance.
Is this page final legal advice?
No. Use it to prepare. A professional should verify the active law year, notification, portal utility and records before filing or taking a tax position.
What should I mention while posting?
Mention the year, state, form, deadline, amount involved, documents available, portal status and whether you need filing, correction, advisory or representation.