Published 9 May 2026
Sale and purchase of land, buildings, vehicles, securities, mutual funds; off-market debit and credit transactions; time deposits -- Annual Information Statement categories 4.29 to 4.34 and 4.47 to 4.50
Taxpayer Brief
Capital markets and property transactions are the most heavily reported categories in the Annual Information Statement, and also the most frequent source of mismatch notices. Every sale of land, every transfer of shares from a demat account, every redemption of mutual fund units, every off-market gift, every property purchase and every fixed deposit booked above the reporting threshold lands in the Annual Information Statement. The taxpayer's job is to ensure that the matching capital gain or capital expenditure is correctly reflected in the return.
1. Sale of Land or Building (Category 4.29) and Receipts from Transfer of Immovable Property (Category 4.30)
Two categories overlap on immovable property sale. Category 4.29 picks up the registered sale-deed value reported by the sub-registrar in the Statement of Financial Transactions in Form 61A under Rule 114E of the Income-tax Rules, 1962. Category 4.30 picks up the consideration on which Tax Deducted at Source was deducted by the buyer under section 194-IA at 1% (where the consideration or stamp-duty value, whichever is higher, exceeds rupees fifty lakh).
Information Source | Threshold | Reconcile Against |
|---|---|---|
Sub-registrar Statement of Financial Transactions reporting | Rupees thirty lakh transaction value (Rule 114E) | Stamp-duty valuation on the sale deed, the Form 26QB filed by the buyer |
Section 194-IA Tax Deducted at Source (Form 26QB) | Rupees fifty lakh consideration or stamp-duty value | Buyer-side Form 26QB challan and the seller's tax credit in Form 26AS |
Section 50C deeming where stamp-duty value exceeds the agreement value by more than 10% | Statutory; no separate Annual Information Statement category | Apply section 50C in the capital gain computation; flag the difference in customised feedback |
The dual-reporting trap When the same property sale is reported in 4.29 and 4.30, the deduplication rule retains the higher value. Practitioner watch-out: where the agreement value is below stamp-duty value, the Annual Information Statement may show the stamp-duty value, but the actual consideration received is lower. The customised feedback in 4.29 (added in v3.0.0) lets the taxpayer specify whether the property was inherited, gifted, or jointly held, and the cost-allocation among joint-holders. |
2. Sale of Vehicle (Category 4.31)
The Regional Transport Office reports vehicle sales under the Specified Financial Transaction return where the sale value exceeds rupees ten lakh. This is the same threshold that triggers Tax Collected at Source under section 206C(1F) -- the seller (typically the dealer for new cars) collects tax at 1% on the sale value. The Annual Information Statement category 4.31 displays both the transaction and any Tax Collected at Source credit available.
3. Sale of Securities and Units of Mutual Fund (Category 4.32)
This is the largest category in the Annual Information Statement of an active investor. The depository (National Securities Depository Limited and Central Depository Services Limited) reports every sale of demat-held securities; the registrar and share transfer agent reports every redemption of mutual fund units; and the stock exchange Specified Financial Transaction reports the buy-sell transactions. Each line gives the date of transfer, the quantity, the consideration, and where applicable the Tax Deducted at Source under section 194 (dividend), section 194LBA (business trust distribution), or other relevant section.
Sub-Type | Tax Treatment | Schedule in Return |
|---|---|---|
Listed equity share held more than 12 months | Long-Term Capital Gain at 12.5% on gain over rupees one lakh twenty-five thousand under section 112A (for transfers from 23 July 2024) | Schedule 112A |
Listed equity share held up to 12 months | Short-Term Capital Gain at 20% under section 111A (for transfers from 23 July 2024) | Schedule CG |
Equity-oriented mutual fund unit held more than 12 months | Long-Term Capital Gain at 12.5% over rupees one lakh twenty-five thousand under section 112A | Schedule 112A |
Debt mutual fund unit purchased on or after 1 April 2023 | Short-Term Capital Gain at slab rate -- Long-Term treatment removed | Schedule CG |
Unlisted security or share | Section 112: 20% with indexation up to 22 July 2024; 12.5% without indexation from 23 July 2024 | Schedule CG |
Pre and post 23 July 2024 The Finance (No. 2) Act, 2024 split the year of transfer into two regimes -- transfers up to 22 July 2024 follow the old rates and the indexation method; transfers from 23 July 2024 follow the new rates without indexation. The Annual Information Statement displays each transaction with its date; the practitioner must apply the correct regime per transaction. Schedule CG of the return for Assessment Year 2026-27 has separate rows for the two periods. |
4. Off-Market Debit and Credit Transactions (Categories 4.33 and 4.34)
An off-market transaction is a transfer of demat-held securities outside the stock exchange order book -- typically a gift, an inheritance, a corporate action, or a shifting between accounts of the same person. The depository reports every such transfer under the Specified Financial Transaction obligation in Form 61A. Category 4.33 captures the debit side (transfer out from the taxpayer's demat account) and category 4.34 captures the credit side (receipt into the taxpayer's demat account).
Off-Market Scenario | Annual Information Statement Treatment | Tax Treatment |
|---|---|---|
Inter-spouse gift of shares | 4.33 in the giver's Annual Information Statement; 4.34 in the recipient's Annual Information Statement | Not a transfer under section 47(iii) for the giver; section 64(1)(iv) clubbing applies for the recipient |
Inheritance of demat shares from a deceased relative | 4.34 in the heir's Annual Information Statement; date of acquisition is the original date for capital gain on subsequent sale | Not a transfer; section 49(1) cost-of-acquisition rules apply |
Off-market sale (private placement; share-purchase agreement) | 4.33 with consideration | Capital gain in the seller's hands; the buyer's cost of acquisition reflects the consideration |
Buy-back of shares post 1 October 2024 | 4.33 in the seller's Annual Information Statement | After the Finance (No. 2) Act, 2024 amendment, taxed as capital gain in the shareholder's hands; sub-section 2(22)(f) deeming taxes the buy-back consideration as deemed dividend |
5. Purchase of Immovable Property (Category 4.47) and Purchase of Vehicle (Category 4.48)
The mirror entries on the buy side. Category 4.47 picks up property purchase from the sub-registrar's Statement of Financial Transactions reporting (rupees thirty lakh threshold) and from the buyer's Form 26QB filing under section 194-IA. Category 4.48 picks up vehicle purchase from the Tax Collected at Source filing under section 206C(1F) and from the Specified Financial Transaction return.
Buy-Side Category | Reconciliation | Capital-Gain / Investment Implication |
|---|---|---|
4.47 Purchase of immovable property | Match against the registered sale deed and the buyer's bank statement; ensure that the buyer has filed Form 26QB and deposited the section 194-IA Tax Deducted at Source | Cost of acquisition for future capital gain; forms the basis for deduction under section 54, 54F or 54EC if the buyer is reinvesting capital gain |
4.48 Purchase of vehicle | Match against the dealer's invoice and the Tax Collected at Source credit | Personal asset -- not a capital asset under section 2(14); no capital gain on subsequent sale of personal motor car |
6. Purchase of Time Deposits and of Securities and Units of Mutual Funds (Categories 4.49 and 4.50)
Category 4.49 reports the purchase of time deposits above rupees ten lakh in a financial year, drawn from the bank's Specified Financial Transaction return. Category 4.50 reports the purchase of securities and units of mutual fund above the threshold from the depository, the registrar and the asset management company. These are the source-of-funds entries that the assessing officer cross-tallies with the income reported in the return.
Source-of-funds reconciliation If a taxpayer reports rupees five lakh of total income but the Annual Information Statement shows rupees twenty-five lakh of time deposits booked, the assessing officer will issue a section 142(1) notice asking for the source. Maintain a contemporaneous record of own-fund versus borrowed-fund versus opening-balance versus matured-deposit-rolled-over for every entry above rupees ten lakh. |
7. Customised Feedback Sub-Categories (Expanded in Handbook v4.1.0)
The capital-markets-and-property categories have the longest list of customised feedback sub-options. The Handbook v3.0.0 (January 2024) added them to seven categories, and v4.1.0 (February 2026) extends them further.
Category | Customised Feedback Options |
|---|---|
4.29 Sale of land or building | Inherited property; gifted property; joint ownership with cost-allocation; section 50C deeming applicable / not applicable |
4.30 Receipts from transfer of immovable property | Sale already declared in 4.29; consideration revised post-agreement; advance forfeited |
4.47 Purchase of immovable property | Inherited / gifted / joint purchase with cost-allocation; reinvestment of capital gain under section 54 / 54F / 54EC |
4.48 Purchase of vehicle | Personal vehicle / business vehicle; partly funded by loan |
4.49 Purchase of time deposits | Source: own funds / loan / matured deposit rollover / family transfer |
4.50 Purchase of securities and units of mutual funds | Source: own funds / inherited / gifted / corporate action |
8. Schedule-Wise Mapping in the Income Tax Return
Annual Information Statement Category | Return Schedule | Practitioner Note |
|---|---|---|
4.29, 4.30 Sale of land or building | Schedule CG -- Section A or B (land) or C (building) | Apply section 50C if stamp-duty value exceeds 110% of consideration |
4.31 Sale of vehicle | Schedule CG -- only if business asset; personal motor car is not a capital asset | Most personal-vehicle entries are informational only |
4.32 Sale of securities and units of mutual fund | Schedule 112A (listed equity LTCG); Schedule CG (other); Schedule SI (special-rate) | Use the broker's annual gain statement for cost and date of acquisition |
4.33 Off-market debit | Schedule CG if a transfer; otherwise no entry but maintain working | Gifts to relatives are exempt under section 56(2)(x) and not transfers under section 47(iii) |
4.34 Off-market credit | Generally no entry in CG until the recipient sells; cost and date carry over from the giver | For inherited shares, document the deceased's original date and cost |
4.47 Purchase of immovable property | Used to support deduction claim under section 54 / 54F / 54EC in Schedule CG | Verify that the new purchase was within the prescribed window |
4.49, 4.50 Purchase of time deposits / securities | Source-of-funds proof; not a return entry per se | Assessing officer cross-references against income |
9. Case Law Reference and Anticipatory Legal Analysis
Case Law Reference: Capital markets and property AIS categories The AIS architecture under section 285BA of the Income-tax Act, 1961 covers capital markets (mutual fund redemptions, equity sales, derivative transactions) and property (Goods and Services Tax sales-deed registration data). The Income Tax Appellate Tribunal Mumbai in [VERIFY: confirm Tribunal citation on AIS-property-Schedule CG reconciliation] addressed reconciliation between AIS-reported sales-deed data and Schedule CG. The Karnataka High Court in [VERIFY: confirm High Court ruling on the section 56(2)(x) interaction with AIS-reported property purchase] addressed the section 56(2)(x) deemed-income mechanism for property purchases below stamp-duty value. [VERIFY: cross-check specific Tribunal and High Court citations in the BharatTax case-law database.] |
Prospective Interpretation -- The post-23-July-2024 capital-gain framework Two unsettled interpretive issues. (i) Treatment of pre-23-July-2024 vs post-23-July-2024 capital-gain reporting -- the Finance Act, 2024 raised the LTCG rate to 12.5% with cost-step-up grandfathering for property; AIS continues to report the gross transaction value. (ii) Treatment of property purchases below stamp-duty value triggering section 56(2)(x) deemed-income -- the AIS cross-tally is mechanical; the assessee must respond to any notice. The BharatTax case-law database should monitor emerging Tribunal positions. [VERIFY: confirm Tribunal decisions emerging on the post-Finance-Act-2024 framework.] |
10. Key Takeaways
- Capital markets and property categories (4.29 to 4.34, 4.47 to 4.50) are the densest entries in the Annual Information Statement and the most common source of mismatch notices.
- The dual-reporting of immovable property (sub-registrar and section 194-IA Tax Deducted at Source) means deduplication and customised feedback are essential.
- Sale of securities post 23 July 2024 follows the new capital-gain rates -- 12.5% Long-Term Capital Gains and 20% Short-Term Capital Gains for listed equity -- and the Annual Information Statement records the date of every transfer separately.
- Off-market debit and credit transactions need careful tax characterisation -- exempt transfers under section 47, gifts under section 56(2)(x), or chargeable transfers.
- Purchase categories (4.47 to 4.50) operate as source-of-funds entries -- assessing officers cross-tally these against the reported income, so a clean source-of-funds working should accompany every large purchase.
- The customised feedback sub-options expanded in Handbook v4.1.0 (February 2026) provide a structured way to record inheritance, gift, joint ownership, reinvestment and source-of-funds explanations.
Disclaimer: This article is for general information only. It does not constitute tax / legal advice. Please consult a qualified Chartered Accountant or tax practitioner for advice specific to your circumstances. The legal position is current as of FA 2024 (No. 2) / FA 2025; subsequent amendments and CBDT notifications may modify the position.