How to add Capital Gain [Land and Building]?

If you sold land, a house, a flat, a commercial property or another immovable property during the financial year, the transaction must be reported under the capital-gains section of your Income-tax Return.

Follow the steps below to add the sale of land or building in myITreturn.com.

Steps to Add Capital Gain from Land or Building

Step 1: Log in to myITreturn

Visit myITreturn.com and log in to your account.

Select the member for whom the Income-tax Return is being filed and open the return for the applicable Assessment Year.

Step 2: Open the Capital Gain – Land and Building section

From the top menu, go to:

Income > Other Income > Capital Gain [Land and Building]

This section is used for reporting capital gains arising from the transfer of land, a residential house, flat, commercial property or another building.

Step 3: Add a new property transaction

On the Capital Gain [Land and Building] screen, click “ADD CAPITAL GAIN DETAILS”.

A separate entry should generally be created for each property sold during the financial year.

Step 4: Enter the property and transaction details

Enter the information requested on the screen. Depending on the transaction, the details may include:

• Type and description of the property
• Date of purchase or acquisition
• Date of sale or transfer
• Sale consideration received or receivable
• Stamp-duty value of the property
• Original cost of acquisition
• Eligible expenses incurred on the purchase or sale
• Cost of improvement, where applicable
• Ownership share in the property
• Buyer’s name and PAN, where required

Step 5: Add exemption details, where applicable

If you are claiming an exemption by investing the capital gain or sale proceeds in another eligible asset, enter the relevant details in the exemption section displayed on the screen.

Keep the supporting purchase documents, deposit details or investment proof available while entering the exemption claim.

Step 6: Save the capital-gain details

Review all the information carefully and click “SAVE”.

After saving, the property transaction will appear in the Capital Gain [Land and Building] summary.

Step 7: Review the capital-gain computation

Open the saved transaction and verify that the following details have been entered correctly:

• Purchase and sale dates
• Sale consideration and stamp-duty value
• Cost of acquisition
• Transfer expenses
• Cost of improvement
• Ownership percentage
• Capital-gains exemption, where claimed

Also review the detailed tax computation before submitting the Income-tax Return.

Common Mistakes to Avoid

1. Entering the entire property value for a jointly owned property: Report the amount relating to your ownership share, as applicable.
2. Using the registration date without checking the actual transfer documents: Enter the relevant acquisition and transfer dates based on the property documents.
3. Ignoring the stamp-duty value: Enter the stamp-duty value wherever it is requested in the filing flow.
4. Entering the outstanding home-loan amount as the purchase cost: The loan balance is different from the cost of acquisition.
5. Claiming unsupported improvement expenses: Retain invoices and payment proof for any cost of improvement being claimed.
6. Combining multiple property sales in one entry: Add each property transaction separately unless the filing screen specifically permits consolidation.
7. Not reporting the transaction because tax was deducted by the buyer: TDS on the property transaction does not replace the requirement to report the capital gain.

Documents to Retain

• Purchase deed or allotment letter
• Sale deed or transfer agreement
• Stamp-duty valuation details
• Brokerage and legal-expense receipts
• Improvement expense invoices
• Home-loan documents, where relevant
• Buyer’s details and PAN
• Form 26AS or AIS reflecting the transaction or TDS
• Documents supporting any capital-gains exemption claimed

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