Background info: A little after the start of last financial year I left my job to do studies, so the income from there was around 4.5 lakh. During the financial year I also did a bit of freelancing which earned me rupees seventy thousand, and that company deducted TDS which is reflected in my form 26AS. I have also made investments under 80C for 1.5 lakh. I have interest from few FD's and long term capital gains (with and without indexation) due to withdrawing from a mutual fund. Didn't pay advance taxes. Slight chance I won't cross the first tax bracket. I don't have a GST ID, and I intend to continue freelancing for a few more years. I do my tax filing myself.
Questions:
1. A CA told me it's not necessary to use ITR4, and I could just declare the Rs.70K freelancing income in ITR2, but I wanted to confirm if it's ok to do that, especially because the TDS for it is shown in 26AS, and the verifying officer would see that it's income from business. Also, I don't see any section in ITR2 where I can declare it. Is "Income Dividends (gross) 1a" the section to enter the 70K?
2. If ITR4 is the right one to use, I don't see any section in ITR4 where I can declare capital gains. Is it the right form to use?
CAclubindia
