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Income tax filing with ITR 2

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Sandip Ghosh

37 Points Posted on 14 July 2024

Hello ,

I have two questions about income tax filing, any direction would be helpful -

If someone has more than Rs. 1 lakh long-term capital gains from the Sale of Equity mutual fund, does that person need to use ITR2 for tax filing?
If someone uses ITR 2 for filing in the current assessment year, can he/she switch back to ITR 1 again in the next Assessment year provided there are no further long-term capital gains for next year?

Thanks in advance.

Replies (2)

Quick Summary

This discussion clarifies the use of ITR 2 for income tax filing, specifically addressing situations involving long-term capital gains from equity mutual funds exceeding Rs. 1 lakh. It confirms that ITR 2 is indeed required in such cases. Furthermore, it explains that an individual can switch back to ITR 1 in a subsequent assessment year, provided their income sources for that year are limited to salary, house property, or other sources, and there are no further capital gains.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121526 Points Posted on 14 July 2024

1. Yes.

2. Any time, no problem.

Deeptha Srinivasa Ragavan

Article Assisstant

159 Points Posted on 14 July 2024

Hi Yes, if there is income from capital gains please file ITR 2. Also ITR form depends on the heads of income for the respective previous year, so next year If the assessee does not have income other than Salary, IFHP OR IFOS he can submit ITR 1.