Schedule CG for Mutual Fund Capital Gains in ITR Under ITA 2025: Complete Guide

Mutual Fund Capital Gains explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.

1. Schedule CG in ITR

Capital Gains from mutual funds, shares, property, and other assets are reported in Schedule CG (Capital Gains) of the ITR. For ITR-2 and ITR-3, Schedule CG requires detailed information for each type of capital gain — equity LTCG, equity STCG, debt LTCG, debt STCG, and other asset gains. The schedule automatically applies the correct tax rate based on the type of gain entered.

2. Capital Gains Statement from AMC/Broker

Every mutual fund investor who redeems units must obtain a Capital Gains Statement from:

• The AMC (Asset Management Company) directly from their portal
• The broker platform (Zerodha, Groww, CAMS, KFintech)
• CAMS and KFintech provide consolidated statements across all AMCs on their respective portals

The Capital Gains Statement shows each redemption with: units sold, acquisition date (FIFO), cost, sale consideration, gain/loss type (LTCG/STCG), and tax basis. Always use this statement for ITR Schedule CG — do not compute manually.

3. Aggregating Gains for Schedule CG

Schedule CG requires separate aggregation:

• 112A gains: All equity fund LTCG — enter total LTCG from all equity funds; Rs 1.25L exemption applied once on aggregate
• 111A gains: All equity fund STCG — enter aggregate STCG; no exemption
• Debt/other STCG: All debt fund gains and non-equity fund gains — entered in appropriate sections
• Property gains: separate computation with index/no-index choice

4. SIP FIFO: Detailed Example

Illustrative only. A monthly SIP of Rs 5,000 started in April 2023. In June 2026, 60 units are redeemed. FIFO applies: units bought in April 2023 are redeemed first. Units from April 2023 to May 2025 (25 months) have been held more than 12 months — these generate LTCG. Units from June 2025 to June 2026 (12 months) have been held exactly 12 months — check exact dates. The Capital Gains Statement automatically applies FIFO and segregates LTCG/STCG.

5. Switch Transactions

Switching from one fund to another (or from direct to regular plan) is treated as: redemption of the original fund (capital gains arise) and fresh purchase of the new fund (new holding period starts). The switch is a taxable event — even if no money leaves the investment. The Capital Gains Statement from the AMC should capture switches as redemptions.

6. STP (Systematic Transfer Plan)

An STP moves fixed amounts from one fund to another periodically. Each STP transfer is a redemption from the source fund (FIFO, capital gains arise) and a fresh purchase in the destination fund. Regular STP investors can accumulate many small capital gain events throughout the year. The annual Capital Gains Statement captures all these transfers as separate redemption transactions.

7. Why TaxClue

Mutual fund capital gains with SIPs, switches, and STPs create dozens of tax events that must be individually reported. TaxClue downloads Capital Gains Statements, aggregates them, and populates Schedule CG accurately. Contact us under ITA 2025.