ABOUT INCOME TAX TREATMENT

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This discussion addresses how to handle income tax when your earnings come from tuition fees and you've made significant investments in shares. While you report your annual tuition income, investments made in previous years aren't directly declared in your Income Tax Return (ITR). However, be prepared for potential queries from the Income Tax Department regarding the source of your investment funds. When you eventually sell shares, you'll need to report and pay capital gains tax.

new era nirman

new era nirman (Querist)
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08 June 2024 My income comes from tuition is rs 3lac annually. I have invested 15 lakh in shares. I want to invest 40 lakh. How do I show it in income tax?

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)
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08 June 2024 There is no facility available in ITR for investment made in previous year.
Hope you get query from ITD about the mismatch of investment against your declare income, there by get chance to explain your source of capital.

CA Puja Sharma

CA Puja Sharma (Expert)
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08 June 2024 While filing the ITR, only income is to be reported.

As mentioned above, you have invested 15 LAcs in shares. These cannot be reported at the time of purchase. However when you will sell these shares, you have to pay Capital gain tax and make the required reporting.

You may receive query from the income tax department regarding the source of income pertaining to your investment.

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