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Which ITR for Long term capital gain from MF (Tax Free)

Last post 07-11-2011 4:38 AM by mobileguru. 2 replies.
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  • 07-10-2011 11:52 PM

    Which ITR for Long term capital gain from MF (Tax Free)

    I have following income this year: 1) Income from Salary 2) Income from Interest 3) Long Term Capital Gain (Sold few equity mutual funds & equity holding, not liabable for tax) Not sure whether I shall use ITR-1 OR ITR-2? Following clause about who can not use ITR-1, suggests that I can use ITR-1: "income under the head "Capital Gain ",which are not exempted from tax,Eg short term capital gain from sale of house ,plot etc:or"
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    • Post Points: 20
  • 07-11-2011 1:42 AM In reply to

    Re: Which ITR for Long term capital gain from MF (Tax Free)

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    ITR-1 Form is used only when income of the individual includes

    (a) Income from Salary/ Pension; or

    (b) Income from One House Property (excluding cases where loss is brought forward from previous years); or

    (c) Income from Other Sources (Excluding Winning from Lottery and Income from Race Horses).


    Your income includes Income from capital gains as well, so you need to file ITR-2 Form. If you are confused with ITR-forms, it is recommended that you use Free Tax yogi service filing your return. No need to worry about ITR-forms. Tax Yogi is Smart Enough. Go ahead and file your return here


    With Regards!!!

    • Post Points: 20
  • 07-11-2011 4:38 AM In reply to

    Re: Which ITR for Long term capital gain from MF (Tax Free)

    I also read that Capital gains require us to fill ITR-2, but I'm having confusion because of following clause from Income Tax department: 3. Who cannot use SAHAJ? This Return Form should not be used by an individual whose total Income for the Assessment year 2011-12 includes, - (a) Income from more than one house property; or (b)Income from Winnings from lottery or income from Race horses; or (c)Income under the head “Capital Gains”, which are not exempt from tax, E.g., short-term capital gains or long-term capital gains from sale of house, plot, etc.; or (d) Income from agriculture in excess of Rs. 5,000; or (e)Income tram Business or Profession. In point (c) it specifically mentions that only if I have income from Capital Gain which is not exempt from tax, then I cannot use ITR1 .. I assume it means if income from Capital Gain is exempt from Tax I can use ITR-1
    • Post Points: 5
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