Schedule CG – Detail of Capital Gains AY 2026-27

Schedule CG – Detail of Capital Gains AY 2026-27

Schedule CG in the Income Tax Return (ITR) forms is used to report capital gains earned from the sale or transfer of capital assets. This schedule requires taxpayers to declare the nature of capital assets sold, such as land, buildings, shares, mutual funds, bonds, or other capital assets, along with details like date of acquisition, date of transfer, sale consideration, cost of acquisition, improvements, and expenses related to the transfer.

It distinguishes between short-term and long-term capital gains, as the tax treatment and rates differ. Indexation benefits (where acquisition is before and transfer is on or after 23rd July 2024), exemptions claimed under various sections (like sections 54, 54F, 54EC, etc.), and set-off of losses are also recorded here. Ultimately, the net taxable capital gain or loss determined under Schedule CG flows into the computation of total income and tax liability in the main return.

Section 45 to 55A of the Income-tax Act, 1961

Section 45 of the Income-tax Act provide that any profit or gain arising from transfer of a capital asset is taxable on accrual basis during the previous year in which such transfer takes place. However, every transfer of a capital asset does not give rise to taxable capital gain because some transactions are either not treated as transfer under Section 47 or they are excluded from the preview of capital asset under Section 2(14) or they enjoy exemption for reinvestment of capital gains or sales consideration.

This schedule applies to ITR-2, ITR-3, ITR-5, ITR-6 and ITR-7.