ITR Filing with Capital Gains — Stocks, Mutual Funds & F&O (FY 2025-26)

If you sold shares, mutual funds, or any other capital asset during FY 2025-26, you must report those gains in your ITR — even if you made a loss. This guide covers everything you need to know about capital gains tax for individuals.

Types of capital gains

Asset type	Holding period for LTCG	LTCG rate	STCG rate
Listed equity / equity MF	More than 12 months	12.5% above ₹1.25 lakh exemption	20%
Debt mutual funds (post Apr 2023)	All gains treated as short-term	As per slab rate	As per slab rate
Property / land	More than 24 months	20% with indexation	As per slab rate
F&O / Intraday	Treated as business income	As per slab rate	As per slab rate

The ₹1.25 lakh LTCG exemption

Long-term capital gains from equity and equity mutual funds up to ₹1,25,000 per year are exempt from tax. Only gains above this threshold are taxed at 12.5%. This exemption resets every financial year, so gains from April 2025 to March 2026 get a fresh ₹1.25 lakh exemption.

Documents you need

• Capital gains statement from your broker — Zerodha, Groww, Upstox, Angel One all provide this. Usually available under Reports or Tax P&L in your account.
• CAMS / KFintech statement — for mutual fund gains across all fund houses. Get a consolidated statement from camsaonline.com
• Form 26AS — to verify TDS deducted on any property sale
• Purchase deed and sale deed — if you sold property

F&O trading — special rules

F&O (Futures & Options) and intraday trading income is not treated as capital gains. It is classified as business income under the Income Tax Act. This means:

• You must file ITR-3 (not ITR-2)
• Your F&O turnover must be calculated correctly (sum of absolute values of profits and losses)
• If turnover exceeds ₹10 crore, a tax audit under Section 44AB is required
• You can claim business expenses against F&O income (brokerage, internet, etc.)
• F&O losses can be carried forward for 8 years (only if ITR is filed on time)

Common mistakes to avoid

• Not reporting LTCG below ₹1.25 lakh — it still needs to be disclosed even if no tax is due
• Using ITR-2 for F&O income — this is incorrect, use ITR-3
• Missing grandfathering date for equity LTCG — for shares/equity MFs held before 31 Jan 2018, there are special rules for cost of acquisition
• Not importing the correct broker statement format — different brokers format statements differently

👉 Get CA-assisted capital gains ITR filing starting at ₹1,999.