Tax return filing date is near , therefore, taxpayers who have earned capital gains must pay attention to advisory of CPC Banglore regarding five most common cause of errors while filling schedule for capital gains in the online return. The errors are cropping up because of mistakes committed while filling out the Schedule CG . These are explained below
1 Give complete break up of capital gains:
Provide complete breakup since the totals are re-calculated while processing the return from the basic values provided. If the break up values are not provided then the total will be calculated as zero. Therefore, Start from full value of consideration. DO NOT ENTER ONLY FINAL VALUES. Enter the correct breakup to arrive at STCG and LTCG values. Do not leave blank any intermediate figures such as Full Value of Consideration etc.
2. Enter value in STCG under 111A
Ensure that the value entered in Sch CG under STCG 111A is also correctly entered in Sch SI under STCG 111A (Section 1A) Enter correct breakup of STCG 111A and other than 111A in Sch CG.
3 Enter all values in under LTCG Non Proviso
Ensure that the value entered in Sch CG under LTCG Non Proviso (option under proviso to S.112(1) is not exercised) is also correctly entered in Sch SI under LTCG Non proviso (Section 21).
4 Correctly enter in Sch Special Income (SI)
Ensure that the value entered in Sch CG under LTCG Proviso (option under proviso to S.112(1) is exercised) is also correctly entered in Sch SI under LTCG proviso (Section 22). All Capital gain tax calculations are as per special rates given in Schedule SI. In case this is not correctly entered then the calculation may differ
5 Correctly enter Quarterly Breakup of capital gains
Verify that correct quarterly breakups for LTCG and STCG are provided in Sch CG and the total of the quarterly breakups match with the respective values in Sch SI (taxable Income after adjusting Min Chargeable to Tax) after set off of all losses. This is because the breakup is required for computation of Advance Tax Liability only. Please note that the quarterly breakup is used ONLY for calculation of Interest under 234C and therefore only positive values matter. Negative value ie losses need not be entered in quarterly breakup.