Itr 1 or 2 & disclosure of ltcg gains

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VIVEK SINHA (Querist)

23 July 2018 Hi,

I have an income from salary with a private organisation Apart from salary, I have some small savings bank interest, some dividends (all below respective tax threshold) and some LTCG for selling shares with over 1 year holding period on which STT was paid (and executed before the new LTCG norms came into effect).

1. I am guessing due to LTCG (even though exempt) I need to fill ITR 2. Is that correct?

2. In ITR 2, I see some sections like CG and OS where one needs to fill income from other sources and interest income and so on. I am guessing that’s nor non-exempt categories and I would not fill those? All I need to disclose is the EI section for my savings a/c interest, minor dividends and exempt LTCG?

3. Also for filling EI section, for LTCG, suppose I have some LTCG loss and some LTCG gain (exempt), while making the disclosure I just need to disclose the total attributable to gains or need to factor out the loss? For instance suppose I sold shares of one company at a loss of Rs 50,000 and gained (final sale value minus principal) Rs 2 lakh for selling shares of another company, do I mention Rs 2 lakh or Rs 1.5 lakh as exempt LTCG?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

23 July 2018 File ITR 1 and show net value of ltcg of 1.5 lacs under exempt income.

VIVEK SINHA

VIVEK SINHA (Querist)

24 July 2018 But the IT department ITR 1 instructions specifically says.. pls see (e)

"Who cannot use this Return Form
This Return Form should not be used by an individual whose total income for
the assessment year 2018-19 exceeds Rs.50 lakh or includes,-
(a) Income from more than one house property and where there is brought
forward loss or loss to be carried forward from previous year; or
(b) Income from winnings from lottery or income from Race horses; or
(c) Income taxable under section 115BBDA; or
(d) Income of the nature referred to in section 115BBE; or
(e) Income under the head “Capital Gains” e.g., short-term capital gains or longterm
capital gains from sale of house, plot, shares etc."

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 July 2018 Exempt income ltcg you can file ITR 1. See exempt income schedule.

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