Methodology

How every Schedule FA figure is dated and converted

These are the conventions behind every number GetScheduleFA reports — the same note that ships on the Methodology sheet of the workbook itself. Each one states its own standing, because the notified ITR-2 schema is silent on all five and a reader deserves to know where a rule ends and our judgment begins.

Standing

Convention, not statute

The five items below are prevailing practitioner convention or a strong inference this tool draws, cited against analogous authority where one exists — never codified rule. The notified ITR-2 schema, its instructions, and the Income Tax Department's own Schedule FA guide are silent on every one of them. Nothing here overrides the reviewing CA's professional judgment.

The five treatments

What we do, and what it rests on

Trade-date sale year

strong inference; analogous authority: CBDT Circular No. 704

a sale's gross proceeds are booked in the calendar year of its TRADE date, never its settlement date — the closest departmental authority on which date a securities transaction is dated for tax purposes is CBDT Circular 704 (holding-period computation by trade date, not settlement date), applied here by analogy; the notified ITR-2 and its instructions are silent on which date a Schedule FA disclosure itself should key off.

Per-transaction TTBR

prevailing practitioner convention; official forms are silent

converting each transaction/valuation at its OWN date's exact TTBR, rather than one blended annual or quarterly rate, is prevailing practitioner practice, not a statutory formula — Rule 115 fixes a conversion rate for specific income heads (e.g. the dividend Rule-115 TTBR above); it does not itself prescribe a valuation-date methodology for Schedule FA's peak/initial/closing figures, and the notified form is silent on this point.

Vest-FMV as initial value

strong inference; official forms are silent

for an RSU/ESPP lot, the Initial Value of Investment is the fair market value on the VEST date (the date the shares were actually acquired) — never the grant-date notional value, and never the price actually paid (often ₹0) — a strong inference from "cost of acquisition" concepts used elsewhere in the Act; the notified ITR-2 Schedule FA fields do not themselves define an initial value convention for equity compensation.

Per-tranche (lot-level) rows

prevailing practitioner convention; official forms are silent

one Table A3 row per purchase lot/vest tranche, rather than one pooled row per security, is prevailing practitioner practice adopted so every acquisition, disposal, and closing figure stays independently traceable to its own source citation — the notified ITR-2 schema is silent on lot-level versus pooled reporting.

Gross-before-deductions

strong inference; official forms are silent

every reported proceeds/income figure is the GROSS amount before fees, commissions, and tax withholding are netted out — a strong inference from the Schedule's own "gross amount paid/credited" and "gross proceeds" field labels, but the Income Tax Department's Schedule FA guide does not itself spell out a fee/withholding netting treatment.

Where to go next

The worked method, and the rates behind it

The step-by-step method these conventions sit inside is in the Schedule FA guide, and the published bank rate every conversion uses is looked up, per date and per currency, with the free SBI TT-buying-rate tool.

Last reviewed 27 July 2026 by GetScheduleFA · current for AY 2026-27.