Reporting Capital Gains in the New IRIS Return
If you sold or disposed of shares, securities, immovable property, mutual funds, or other investments during the tax year, that profit goes into the Capital Gain section of the return. Select it as an income source on the Return Prerequisites screen if you haven’t already.
For the full return walkthrough from login to submission, see our step-by-step guide to filing your income tax return online.
Step 1: Add Your Capital Assets
Navigate to the Capital Gain section and select Capital Gain on Assets, Property, or Securities, depending on what you disposed of.
- For shares, securities, mutual funds, and similar assets: click “+ Capital Assets,” select the applicable asset from the list, and click Add. It’ll appear in the relevant section.
- For property: click the + icon under the Property section, select the applicable property from the list, and click Next. Enter the required details in the fields that follow and click Update – the capital gain or loss on that property will then display on screen.
Enter the required amounts in the applicable fields, click Calculate, then Next.
Step 2: Tax Deductions
Under Tax Deductions, click “+ Section” under the Final Tax section, select the applicable Final Tax entry from the list, and click Add. Enter the required values, click Calculate, then Next. Capital gains are typically subject to Final Tax rather than being combined into your general taxable income, so this step matters more here than it does for salary or business income.
Step 3: Adjustments
If you have unadjusted capital losses from previous years or other capital assets, enter those amounts in the Adjustments tab, click Calculate, then Next. This lets the system carry forward and offset losses against gains where the rules allow it.
Common Mistakes We See With Capital Gains
- Reporting property capital gains through the general Property section instead of Capital Gain. Rental income and capital gain on the same property are two different things reported in two different sections.
- Forgetting to carry forward unadjusted losses. If you had a capital loss in a previous year that wasn’t fully absorbed, it needs to be entered in Adjustments here, not left out.
- Not distinguishing which asset type applies before adding it – securities, property, and other capital assets follow different rate and adjustment rules, so selecting the wrong category up front can throw off your entire computation.
FAQ
Are capital gains taxed the same way as regular income?
No. Capital gains are generally subject to Final Tax at their own rates, which is why they have a dedicated Tax Deductions step separate from your other income modules.
What if I sold a property at a loss?
Enter it as a capital loss on that property. If it isn’t fully absorbed in the current year, carry the unadjusted amount forward and enter it in the Adjustments tab in future returns.
Do I need to report gains on mutual funds separately from shares?
Both are added through “+ Capital Assets” by selecting the specific asset type from the list – the system tracks them individually even though the process to add each is the same.
