ITR filing 2026: How to report capital gains from shares, mutual funds and ETFs to avoid tax notices

Taxpayers must report capital gains from shares, mutual funds, and ETFs in ITR for AY 2026-27 using ITR-2 or ITR-3.

Gains must be classified as short-term or long-term based on holding period: 12 months or less is STCG, more than 12 months is LTCG for equity shares, equity mutual funds, and ETFs.

Transactions must be reported in the Capital Gains schedule with sale proceeds, cost of acquisition, and resulting gain or loss.

The Income Tax Department cross-verifies transactions via brokers, depositories, and the Annual Information Statement (AIS); mismatches can trigger scrutiny.

For AY 2026-27, ITR-2 due date is July 31 and ITR-3 (non-audit) due date is August 31.