Income Tax department to introduce new ITR norms on capital gains, others, before April 10

The Income Tax department is set to introduce new ITR (income tax return) norms on capital gains tax and others before April 10, multiple sources told CNBC-TV18.

The new norms will include a 10 percent tax on corporates and individuals for gains made on assets worth over Rs 1 lakh, said the above-mentioned sources on condition of anonymity.

Profits or gains arising from the transfer of a capital asset such as property, gold, shares and bonds are considered capital gains and taxed under the income head “capital gains". Capital gains are calculated by deducting the cost of acquiring the asset from its sale value.

“The forms are currently getting designed and once they are approved by the systems, the forms will be sent for a formal nod of the law ministry before the income tax department puts it out online for return filing,” one of the sources said.

The deadline for return filing process for the financial year 2018-19 is July 31.

The new ITR  norms include individuals listing the capital gains made from listed equities, a new window of standard deduction of up to Rs 40,000 and a new window for tax exemption, the sources said.

For capital gains tax, a 5 percent relaxation is likely to be introduced, if the individual sells his or her property below the stamp duty.