Income From Mutual Fund Sale for Govt. Employee AIS

Hello Everyone,

I have a query related to my friend ITR. He is a Govt employee and his Salary in F.Y 20-21 is around 12 Lac. But when I visited to his profile and see the AIS.I found that he is also investing in Mutual funds and his mutual fund sale is 1.5 Lac and mutual fund purchase is 1.3 Lac. right now, What ITR should I have to file? If I am trying to file ITR-1 Can I show the STCG amount in "Income from Other Source" or If am file the ITR-2 but the Income is not more than 50 Lac ?

Replies (2)
Quick Summary
This discussion clarifies the correct Income Tax Return (ITR) form for a government employee who has realised capital gains from mutual fund sales. While ITR-1 might seem simpler, the presence of capital gains necessitates filing ITR-2. The specific type of capital gain (Short-Term Capital Gain or Long-Term Capital Gain) depends on the holding period and the nature of the mutual fund (equity, debt, or hybrid).

STCG or LTCG - based on period of holding and type of fund i.e. Debt, Equity or Hybrid.

 

You have to file ITR 2

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