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How to report a mutual-fund or share sale in your ITR (reading AIS/TIS)

✍️ Answered by EaseValue Advisors · Updated 18 Jul 2026 · 6-min read
Quick answer

Every sale of mutual-fund units or shares is a capital gain — report it in the Capital Gains schedule of ITR-2 (you can't use ITR-1), even if it's a few hundred rupees. AIS/TIS shows the sale value, not the gain — you compute and report gain = sale − cost. Reconcile with AIS, but report your actual figures.

Key takeaway

The AIS/TIS is a reminder that a transaction happened, not your tax figure. It lists the sale value (and sometimes the purchase), but you owe tax only on the gain. Report the real gain from your capital-gains statement (from the AMC/broker), and if the AIS number is wrong, correct it with feedback — don't just copy it.

Reading AIS / TIS correctly

  • "Sale of securities and units of mutual fund" = the redemption/sale value reported by the AMC/broker.
  • "Purchase of securities and units" is informational — it doesn't mean tax; buying isn't taxable.
  • The gain = sale value − cost of acquisition (+ any improvement). Only the gain is taxed.

The rates

What you soldTax
Equity fund / listed shares — long-term (>12m)12.5% over the ₹1.25 lakh yearly exemption
Equity fund / listed shares — short-term (≤12m)20%
Debt / non-equity funds (bought on/after 1 Apr 2023)At your slab

See short-term vs long-term.

"But it's only ₹49 / ₹28 of gain"

Tiny amounts still make you ineligible for ITR-1 — any capital gain means ITR-2. Report the small gain (the tax is negligible), but skipping it and filing ITR-1 makes the return defective. A ₹1,028 sale against ₹1,000 cost = ₹28 gain — report ₹28.

Fixing a mismatch

If TIS shows a purchase/sale that isn't yours or has the wrong value, submit feedback in the AIS (Information is not fully correct / not mine). Minor rounding differences (₹10 or less) between the broker statement and AIS are fine — report your broker/AMC capital-gains statement figures.

Forms required

  • ITR-2 (or ITR-3 if you also have business/F&O income).
  • Your Capital Gains Statement / CAS from the AMC (CAMS/KFintech) or broker.
  • AIS/TIS to reconcile.
General information based on the Income-tax Act as it stands, not advice on your specific case. Tax outcomes depend on your exact facts and residential status. © EaseValue Advisors LLP.
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