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ITR return 1 or 2

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Bhavesh

Accounts

177 Points Posted on 12 December 2021

I am earning a salary income and have certain investments in equity segment. In the year FY 19-20, I have a file an ITR 1, towards my salary income, but shown any financial transactions related to my sale towards sale of the equity sales ( not speculative) and that income was neglible. As of now income tax has introduce IAS and one has to file accordingly so in that case which ITR return has to file and can I get a notice for not showing a income of ITR I have filed.

Replies (3)

Quick Summary

If you earn a salary and have investments in equities, including capital gains from selling shares, you generally cannot use ITR 1. You will likely need to file ITR 2. Failing to declare capital gains can result in a notice from the tax department, as they now have access to all financial transaction data. It's crucial to file the correct ITR form to avoid penalties.

CMA Poornima Madhava

CMA

13117 Points Posted on 13 December 2021

If you have capital gains, you may use itr2

Naga Upendra

161 Points Posted on 14 December 2021

ITR-2 is suitable for you, Because you have salary income and capital gain. and for not showing income in ITR, notice will come. because all the information is with department now