Capital Gains – Shares & Securities

Service Description

Capital gains arising from shares, mutual funds, and other market securities require careful computation due to the volume of transactions, varying holding periods, corporate actions, and frequent regulatory changes. At PRS&A, we handle capital gains reporting with a structured, data‑driven approach that ensures accuracy, compliance, and complete alignment with the Income Tax Act. Our process begins with consolidating trade data from brokers, demat statements, contract notes, and AIS/TIS records. We reconcile discrepancies, identify missing entries, and ensure that buy‑sell matching is accurate across multiple platforms or brokers. We classify each transaction into long‑term or short‑term based on holding period rules and apply the correct tax treatment, including grandfathering provisions, indexation (where applicable), and special rates under Sections 111A and 112A. Corporate actions such as bonuses, splits, mergers, demergers, and rights issues are adjusted carefully to ensure correct cost allocation. We also verify STT applicability, dividend taxation, and loss set‑off or carry‑forward eligibility under Sections 70–74. Our team ensures that the final computation aligns with AIS and Form 26AS to avoid mismatches that may trigger notices. We prepare a clean, audit‑ready capital gains statement that integrates seamlessly into the ITR. For active traders or investors with high‑volume transactions, we use structured templates and automated checks to ensure precision. At PRS&A, capital gains computation is not just a mathematical exercise — it is a compliance‑critical process that protects clients from future scrutiny and ensures transparent, defensible reporting.