I have unclaimed dividend income for fy 23-24. While it is showing in my dividend section in AIS and TIS, it is also shown in AIS and TIS as, 'Sale of securities and mutual fund units, but the description in that is stating 'unclaimed dividend' So, in my ITR should I limit it to filling it in Dividend section or additionally mention it in Sale if securities and capital gains under 'capital gains' section

Ans: You would need to contact the companies to rectify any errors in your 26AS.

If there is any difference in your tax filing vs 26AS, you would get a notice from the income department.

If the difference is very low, then you can decide whether you would like to pursue the case or go by the 26AS statement.

 

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: If TDS is deducted but not appearing in AIS, it is advisable to claim such TDS while filing ITR and intimate company to look into it (through e-mail/letter).