Taking into consideration of all the parameters stipulated for arriving at the long-term capital gains on the shares (i.e purchase value, grand fathering effect given to the shares bought prior to January 2018, sale value and deduction of long-term loss from the long-term gains made), I submitted the data to my auditor for filing IT return for the assessment year 2021-22. He fed the required figures into the software devised on the basis of format provided by IT Department. The long-term gain arrived at had a vast variation of ₹30,000 from the figure given by me. The long-term gain increased by Rs.30,000/- . If there is a small variation, the same can be ignored. The auditor is compelled to take the figure provided by the software. If the figure is incorporated in my return, I have to pay the tax for unrealised amount. Please provide suitable solution to sort out the matter. 

RM. Ramanathan 

In the newly-launched JSON utility, there is an option to fill in the details of capital gains under Section 112A in an excel file (format can be downloaded from the offline utility) and upload the same. The utility would then automatically calculate the capital gains and appropriate taxes, thereon. You can consider inputting the requisite details in such excel format and upload the said file in the latest JSON utility downloaded from the income tax e-filing portal. You may then compare the capital gains/(loss) and tax liability thereon calculated in the JSON utility vis-à-vis your calculation computed by your auditors to check for any variation.  Though I am not aware of the reason for a substantial variation, (₹30,000) in calculation of capital gains computed by you vis-à-vis the amounts calculated by the Income tax department utility, you may please note that the JSON utility allows entries up to four decimal places for the quantity, cost price and sales price. You may consider keying in the respective quantity, cost price and sale price of the shares up to four decimals.  Additionally, please note that in case your return for AY2021-22 is already filed with the variations as highlighted by you, you may consider revising your tax return with correct capital gain calculations with such approach. The due date to file the revised income tax return is March 31, 2022.  You may also note that in case the tax return is not filed within the extended due date of December 31, 2021, the return can still be filed up till March 31, 2022. However, the same would be considered as a belated tax return. Following are some of the consequences of filing a belated tax return:  Any loss on sale of Capital asset (Capital loss) cannot be carried forward for set-off in any subsequent year  Additional interest would arise on account of delay in filing of tax return on outstanding tax liability, till date of filing Late filing fee ranging from ₹1,000-5,000 (subject to total income levels).

The writer is a practising chartered accountant.

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