The approach for preparation of information by Depository and RTAs is as under:
Only user-initiated debit transactions are reported. In case of a minor, details of legal or natural guardian (PAN, Name etc.) is provided.
The Estimated Sale Consideration for the debit transaction is determined on the best possible available price of the asset with the reporting entity (e.g. end of day price). The taxpayer will be able to modify the sales consideration before filing the return.
The securities are classified into specified security class for determining the type of asset (short term/long term) and applicable rate.
The period of holding (difference between date of sale and date of acquisition of any share/security) is used to classify the asset as short term or long-term asset. First in First out (FIFO) method is used for identification of corresponding credit and computation of period of holding. Any capital asset held by the taxpayer for a period of more than minimum period of holding will be treated as long-term capital asset and remaining assets will be classified as short-term asset. The specified minimum period of holding for different asset class is as under:
Security Class Code | Security Class Description | Minimum Period of Holding |
LES | Listed Equity Share | 12 months |
LPS | Listed Preference Share | 12 months |
LDB | Listed Debenture | 12 months |
ZCB | Zero Coupon Bond | 12 months |
CIB | Listed Capital Indexed Bond | 12 months |
EMF | Unit of Equity Oriented Mutual Fund | 12 months |
UTI | Unit of UTI | 12 months |
UBT | Unit of Business Trust | 36 months |
OTU | Other Units | 36 months |
OTH | Other Listed Securities (Other than a unit) | 12 months |
For every debit transaction, the corresponding credit transaction is identified using First in First Out (FIFO) method.The estimated cost of acquisition for the credit is determined on the best possible available price with the reporting entity. The estimated cost of acquisition is to be taken as NIL for OFF Market credits. The taxpayer will be able to modify the cost of acquisition before filing the return.
In relation to a long-term capital asset, being an equity share in a company or a unit of an equity-oriented fund acquired before the 1st day of February, 2018, adjusted cost of acquisition is taken as higher of (i) the cost of acquisition of such asset; and (ii) lower of (A) the fair market value of such asset as on 31st January, 2018; and (B) the full value of consideration received or accruing as a result of the transfer of the capital asset. The Cost Inflation Index is used to determine estimated indexed cost of acquisition wherever applicable.
The key information sources under this information category are as under:
S.No | Information | Information Description |
1 | Sale of Listed Equity Share (Depository) | In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return. |
2 | Buy back of shares | In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return. |
3 | Sale of Listed Preference Share (Depository) | In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return. |
4 | Sale of Listed Debenture (Depository) | In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return. |
5 | Sale of Zero Coupon Bond (Depository) | In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return. |
6 | Sale of Listed Capital Indexed Bond (Depository) | In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return. |
7 | Sale of Unit of Equity Oriented Mutual Fund (Depository) | In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return. |
8 | Sale of Unit of Equity Oriented Mutual Fund (RTA) | In the SFT reporting of mutual fund transactions, the sale consideration for the debit transaction is determined on the best possible available price of the asset with the Registrar and Transfer Agent (RTA). The taxpayer will be able to modify the sales consideration and other related information before filing the return. |
9 | Sale of Unit of UTI (Depository) | In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return. |
10 | Sale of Unit of UTI (RTA) | In the SFT reporting of mutual fund transactions, the sale consideration for the debit transaction is determined on the best possible available price of the asset with the Registrar and Transfer Agent (RTA). The taxpayer will be able to modify the sales consideration and other related information before filing the return. |
11 | Sale of Unit of Business Trust (Depository) | In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return. |
12 | Sale of Other Unit (Depository) | In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return. |
13 | Sale of Other Unit (RTA) | In the SFT reporting of mutual fund transactions, the sale consideration for the debit transaction is determined on the best possible available price of the asset with the Registrar and Transfer Agent (RTA). The taxpayer will be able to modify the sales consideration and other related information before filing the return. |
14 | Sale of Other Listed Securities (Depository) | In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return. |
The approach for AIS processing and information handling is as under:
Information reported by Depository and RTA in respect of mutual fund transactions will be deduplicated.
Information reported by Depository and Company in respect of share buy back will be deduplicated.
The AIS information level feedback can be used for providing following inputs:
Information is correct
Transfer not in the nature of sale
Income is not taxable
Information is not fully correct: This functionality can be used to modify Security Class Code, Sale Consideration, Asset Type (Short Term/Long Term), Cost of acquisition, Indexed Cost of Acquisition (If applicable)
Information relates to other PAN/Year
Information is duplicate / included in other information
Information is denied
The feedback provided by taxpayer will be shown separately in AIS and will update the value in Taxpayer Information Summary (TIS).
Deductions relating to cost of acquisition,improvement, expenditure in connection to sale/transfer and deduction u/s 54 needs to be claimed in the return.
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