The last date of filing Income Tax Return for FY 2020-21 has been extended to December 31, 2021. If a taxpayer holds unlisted equity shares and is confused if details regarding it should be mentioned in ITR forms or not, then here is what you need to know.
The last date of filing Income Tax Return for FY 2020-21 has been extended by the central government to December 31, 2021. All the taxpayers need to keep certain points in mind before filing the returns.
If a taxpayer holds unlisted equity shares and is confused if details regarding it should be mentioned in ITR forms or not, then you can check the details regarding the same here.
As per the information provided by the Income Tax Department a taxpayer who held shares of a company during the previous year, which are listed in a recognized stock exchange outside India is not required to report the requisite details against the column “Whether you have held unlisted equity shares at any time during the previous year”.
If a taxpayer has held equity shares of a company which were previously listed in a recognised stock exchange, but delisted subsequently, and became unlisted. Then in such cases PAN of the company may be furnished if it is available. In case PAN of delisted company cannot be obtained, the taxpayer may enter a default value in place of PAN, as “NNNNN0000N”.
In case unlisted equity shares are acquired or transferred by way of gift, will, amalgamation, merger, demerger, or bonus issue etc., and you have to report the “cost of acquisition” and “sale consideration” then you may enter zero or the appropriate value against “cost of acquisition” or “sale consideration” in such cases.
However, it needs to be noted that the details of unlisted equity shares held during the year are required only for the purpose of reporting. The quantitative details entered in this column are not relevant for the purpose of computation of total income or tax liability.
A taxpayer will also have to report if he/she has held unlisted equity shares as stock-in-trade of business during the previous year in the column “Whether you have held unlisted equity shares at any time during the previous year?”
As per the Income Tax Department, if a taxpayer holds shares in an unlisted foreign company which has been duly reported in the Schedule FA. Then also he/she will have to report the same in the column “Whether you have held unlisted equity shares at any time during the previous year?”
The Income Tax Department further clarifies that the details of equity shareholding in any entity which is registered under the Companies Act, and is not listed on any recognised stock exchange, is only required to be reported.