Depositories have to furnish details of capital gains on listed securities, taking capital gains on a FIFO (first-in, first-out) basis, taking cost of IPO or off-market transactions at zero, and cost and sale price for on-market transactions at day-end rates. This implies that till mid-June, your pre-filled returns would not be available on the tax department’s website, and you may not be able to file your tax return. In case of capital gains on listed securities, you are permitted to correct the purchase or sale rates while filing your tax returns. Therefore, it is essential that taxpayers should be able to correct their pre-filled tax returns. How can you otherwise hold taxpayers at fault for giving incorrect information, unless the pre-filled information is also correct?

Source: Mint May 06, 2021 19:07 UTC