Which itr form to use for a.y.2012-2013

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Kapil Tiwari (Querist)
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13 July 2012 A person has the following income during April 2011 to March 2012:
1) Income from Salary
2) Income from Other Sources
3) Long Term Capital Loss from sale of equity shares and units of equity mutual fund schemes

According to the instructions given for using "SAHAJ" form, a person cannot use this form if he has "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.".

If a person has very small long term capital loss, which he does not wish to carry forward, can he ignore the loss and use "SAHAJ" form for filing his Income Tax Return for AY 2012-2013? Kindly advise.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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13 July 2012 1. ITR 1 is to be filed in the above case. 2. Long term capital loss on shares & mutual funds on which STT has been paid at the time of sale is NOT ALLOWED. It is a dead loss which has no treatment.

The assessee CANNOT carry forward sych loss.

3. Since you cannot carry forward such loss, you will file ITR 1.

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Kapil Tiwari

Kapil Tiwari (Querist)
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21 July 2012 Mr. Siddhartha,
Thank you for your clarification. So, in AY 2012-2013, if I have:
1) Long Term Capital Loss on sale of shares & Equity Mutual Fund Schemes to the extent of about Rs.7,000/-
2) P.P.F. interest of about Rs. 1,50,000/-

Both items are tax-exempt. Hence, I can use Sahaj form for filing my IT Returns. Am I correct?