Dear Mihir , I am salaried employee and have been filing my ITR return since 10 years under Form 1. (which is fairly simple). Last FY for the first time I sold out some of my equity shares and that makes me ask you following .How to report LTCG and STCG in the Form 2.(This form looks very comprehensive comparing to Form 1 ). Could you please simplify the steps involed to report my above Capital gains and conclude my Return before 31 st July.

Ans: I am not clear if this question you are referring to is also related to the ULIP policy of yours. As explained above, you don’t need to pay tax on this if you fulfil the Sum Assured criteria for the policy. In such case, you can show it as other income that is exempt from tax.

If you are asking a generic question, or even if your ULIP is taxable, you will need to fill out the capital gains schedule in the ITR 2, providing scrip-wise details for long term capital gains while filing ITR 2. This will include ISIN, Selling Price, Purchase price, date of different transactions and more. 

Ans: Dear Rajesh,

Firstly, I appreciate your diligence in managing your taxes. Now, coming to your query, the choice between ITR-1 and ITR-2 depends on the nature of your capital gains.

ITR-1, also known as Sahaj, is for individuals with income up to Rs. 50 lakh from salary, one house property, other sources (interest, etc.), and agricultural income up to Rs. 5,000. However, it does not allow you to report capital gains.

On the other hand, ITR-2 is for individuals and HUFs not having income from profits and gains of business or profession. It includes the provision to report capital gains.

In your case, since you have capital gains from the sale of mutual funds, even if it's less than the taxable limit, it would be more appropriate to file ITR-2. The TDS that has been deducted can be claimed as a refund in your return if your total income is below the taxable limit.

Please consult with a tax professional or chartered accountant to ensure you're following the correct procedure as per the latest tax laws.

Remember, it's always better to be accurate in your tax filings to avoid any future discrepancies or issues with the tax department.

I hope this helps.

Best Regards

Ans: In case of Income from capital gain, you are required to file ITR 2

Ans: 01. I feel Form ITR-02 would be applicable in your case.
02. You need to declare the Sale & Cost of shares you have sold to work out LTCG/STCG.
03. If shares sold are of Listed company, it shall be covered under LTCG.
Most welcome for any further clarifications. Thanks.