Form R : Annual Return

Every employer must upload the Annual Return online in Form ‘R’ on a particular website during the last two months of the particular year. The last date for submitting the annual Return is Dec 31st.

What is Annual Return?

The Annual Return is a return on investment generated in a particular year. It is calculated in percentage. If the annual Return is positive, the investment knocks on profit; otherwise, if it is negative, it turns into a loss.

How do you calculate it?

The formula of Annual return – Annual Return = [(Last Value/ First Value) ^ (1/n)] – 1
(N = No. Of years the investment is held)

Let’s understand the calculation of Annual returns with the help of an example.
Nirmit bought the stock of ABC company at INR 250 in January 2022, and The price of the stock, as of Dec 31st 2022, is INR 750.
The annual Return from the investment is
[(750/250) ^ (1/8)] – 1 = 14.72%
Thus, Annual Return is 14.72%.