Tax on long term capital gains? Here's the ITR form you should use

Assesses who are required to file Income Tax Return (ITR) should determine the type of ITR form before actually filing it. The form must be chosen in accordance with the income that the taxpayer earns, or if the taxpayer holds assets in a country other than India. Likewise, the treatment of capital gain as well as its reporting plays a major role while selecting ITR forms.

Capital gains are the difference between the selling price and purchase price of the equity share. These are based on the period of holding and whether it is listed or unlisted.

In the case of listed equity shares or mutual funds which are held for more than one year, the gains are long-term in nature and get taxed at a tax rate of 10 percent. However, there is no tax for aggregate long-term gains up to Rs 1 lakh in a financial year.