Schedule 115AD(1)(b)(iiii)-Proviso – Sale of specified equity share AY 2026-27
‘Schedule 115AD’ deals with the reporting of long-term capital income of a specified fund or a Foreign Institutional Investor. This schedule seeks details of gains where Securities Transaction Tax (STT) is paid and section 112A applies. The schedule captures detailed information for each transaction, including:
- Whether the shares or units were acquiredon or before or after 31st January 2018.
- Whether they were transferredbefore or after 23rd July 2024.
- Details such as ISIN code, name, number of shares/units, sale price, cost of acquisition with or without indexation, and fair market value as on31st January 2018.
- It requires calculation of thegrandfathered costas per the lower of actual cost or fair market value on 31st Jan 2018.
- It also considers expenditure wholly and exclusively incurred in connection with the transfer.
Section 115AD of the Income-tax Act, 1961
Rule 21AI and Rule 21AJ of the Income-tax Rules, 1962
Income earned by a Category-III AIF is taxable in its hands. Section 10(4D) provides an exemption to the specified Category-III AIF in respect of income arising from the transfer of specified securities and income received from a securitization trust. Further, where such Specified Category-III AIF distributes such income, it shall be exempt in the hands of the unit-holders.
This schedule is applicable to ITR-3, ITR-5, ITR-6, and ITR-7.