Depositories and mutual fund RTAs to report capital-gains data to the Income Tax Department every half year: SFT-2517 and SFT-2518 formats notified
The Directorate of Income Tax (Systems) has notified the format and procedure for two statements of financial transactions under section 508(1) of the Income-tax Act, 2025: SFT-2517 for depositories and SFT-2518 for registrars and share transfer agents of mutual funds. The data, used to pre-fill capital gains in the return, is due half-yearly — by 31 October and 30 April — and must also be given to the account holder.
Key facts
- In force
- From 10 September 2026; statements due by 31 October and 30 April for each half year
- Who it affects
- Depositories, registrars and share transfer agents of mutual funds, demat account holders and mutual fund investors, tax professionals
- What it is
- New facility
- Section
- Income Tax
- Published
- 10 September 2026
In 30 seconds
- Notification No. 1 of 2026 (SFT-2517, depository transactions) and Notification No. 2 of 2026 (SFT-2518, mutual fund transactions by RTAs) are dated 10 September 2026 and take effect from the date of issue.
- They are issued under sub-rule (6) of rule 237 of the Income-tax Rules, 2026, with the approval of CBDT.
- Statements are half-yearly: the half year ending 30 September by 31 October, and the half year ending 31 March by 30 April.
- The data is meant for pre-filling the return of income; the taxpayer can modify the sale consideration and the cost of acquisition before filing.
- Period of holding and cost are worked out on a First-in-First-out basis.
- Reporting entities must give the same information to the account holder, to reconcile it with the Annual Information Statement (Form 168).
हिंदी में सार
आयकर निदेशालय (Systems) ने 10 सितंबर 2026 को दो अधिसूचनाएँ जारी की हैं: SFT-2517 (डिपॉज़िटरी) और SFT-2518 (म्यूचुअल फ़ंड के RTA)। इनके तहत सूचीबद्ध प्रतिभूतियों और म्यूचुअल फ़ंड यूनिट की बिक्री पर पूँजीगत लाभ का ब्योरा हर छमाही — 31 अक्टूबर और 30 अप्रैल तक — विभाग को भेजा जाएगा, ताकि रिटर्न में यह पहले से भरा आए। करदाता रिटर्न भरने से पहले बिक्री मूल्य और लागत बदल सकता है, और यही जानकारी खाताधारक को भी दी जाएगी।
What has been notified
Section 508 of the Income-tax Act, 2025 and rule 237 of the Income-tax Rules, 2026 require specified reporting persons to furnish a statement of financial transaction (SFT). Sub-rule (6) of rule 237 provides, for the purpose of pre-filling the return of income, for a statement containing information on capital gains on transfer of listed securities or units of mutual funds, in the form, frequency and manner specified by the Director General of Income Tax (Systems).
Using that power, the Directorate of Income Tax (Systems) issued two notifications on 10 September 2026, with the approval of CBDT. Both take effect from the date of issue.
| Notification | Statement | Who reports |
|---|---|---|
| No. 1 of 2026 | SFT-2517 — depository transactions | All depositories as defined in section 2(1)(e) of the Depositories Act, 1996 |
| No. 2 of 2026 | SFT-2518 — mutual fund transactions | All Registrar and Share Transfer Agents registered under section 12(1) of the SEBI Act, 1992 |
When the statements are due
| Period | To be furnished on or before |
|---|---|
| First half of the financial year, ending 30 September | 31 October |
| Remaining half, ending 31 March | 30 April |
Data files are prepared from the entity’s internal system in the prescribed format and submitted through an SFTP server. A separate control statement is signed, verified and furnished by the Designated Director. A file that fails validation is rejected; errors are fixed through a correction or deletion statement.
How the gain is estimated
- What is reported. User-initiated debit transactions. Off-market debits or transfers where transferor and transferee are the same person need not be reported. RTAs may leave out exchange traded funds and exchange-based transactions.
- Sale consideration. Depositories use the weighted average price. RTAs use the best available price, or the redemption offer price (exit-load-adjusted NAV) on the date of sale.
- Cost of acquisition. The matching credit is identified on a First-in-First-out basis. For demat accounts, cost is the weighted average price for purchases after 1 February 2018 or the end-of-day price for earlier purchases; it is taken as NIL for off-market purchases, corporate actions or transactions other than through an exchange. For an IPO allotment it is shares allotted multiplied by the allotment price.
- Purchases before 1 February 2018. For equity shares, units of equity-oriented funds and units of business trusts, the fair market value as on 31 January 2018 is brought in, as section 90 of the Act provides.
- Long term or short term. By period of holding: 12 months for listed equity and preference shares, listed debentures, zero coupon bonds and units of equity-oriented funds; 12 months if listed and 24 months if unlisted for units of business trusts and other units. A Market Linked Debenture or a Specified Mutual Fund under section 76 is always short-term.
The notifications say more than once that the taxpayer will be able to modify the sale consideration and the cost of acquisition before filing the return.
What investors get
Reporting entities are also required to provide the information reported to the Income Tax Department to the account holder, so that taxpayers can reconcile it with the Annual Information Statement (AIS) (Form 168).
What to do
- Depositories and RTAs: build the batch, account summary, transaction summary and off-market transaction files as per the annexures, and put in place the information security, archival and retrieval policies the notifications require.
- Investors: treat the pre-filled capital gains as an estimate. Check it against the statement your depository or RTA gives you, especially where cost is shown as NIL, and correct it before filing.
Questions and answers
What are SFT-2517 and SFT-2518?
They are statements of financial transactions under section 508(1) of the Income-tax Act, 2025 read with rule 237(6) of the Income-tax Rules, 2026. SFT-2517 is furnished by depositories for demat transactions and SFT-2518 by registrars and share transfer agents for mutual fund transactions.
How often is the data reported?
Half-yearly. The statement for the half year ending 30 September is due on or before 31 October, and the one for the half year ending 31 March on or before 30 April.
Will the capital gains in my return be pre-filled from this data?
That is the stated purpose. The notifications say the transaction summary file will be used for pre-filling gain, income or loss, and that the taxpayer will be able to modify the sale consideration and the cost of acquisition before filing the return.
Why might the cost of acquisition be shown as NIL?
For demat accounts, the estimated cost of acquisition is taken as NIL for off-market purchases, corporate actions or any transaction other than through an exchange. The taxpayer can change it before filing.
Will I get a copy of what is reported?
Yes. Reporting entities are required to provide the reported information to the account holder to enable reconciliation with the Annual Information Statement (Form 168).
Published 10 September 2026. Updated 9 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.