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Income tax return form selection

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Vijaykumar Vyas

3 Points Posted on 22 November 2021

Dear Members,

I have earning of short term capital gain by selling of listed shares of Rs 2.45Lakh during FY 2020-21 and AY 2021-21. I have no other income. The trades are from savings. I need to file income tax return for record. I have confusion to which relevant ITR form to choose i.e. ITR1 (as no liability under STCG) or ITR2.

Furthers the NSDL reporting showing higher amount in annual reporting portal while actual earning is lower as per the capital gain statement of the service provider. I have 5000 speculative income on intraday as well. Can I avail 80D deduction ? so it allowed to bring down the basic exemption limits. Thanks with regards, Vijay

Replies (3)

Quick Summary

This discussion addresses the confusion around selecting the correct Income Tax Return (ITR) form when dealing with short-term capital gains from listed shares and speculative income from intraday trading. While ITR 1 might seem applicable if there's no tax liability, the consensus suggests ITR 3 is necessary for declaring both capital gains and speculative income. Alternatively, ITR 2 can be used, detailing capital gains in Schedule CG and intraday income under Schedule OS, to avoid potential queries from the IT department regarding income bifurcation.