ITR1 or ITR2, if equity mutual fund profit is 10,000/- (below 1 lakh)

Will 10k or 12k in above two different scenarios stands taxable, even if it is below Rs.1 lac ?

In both cases holding period is less than 12 months, therefore it's short term capital gains, 1lac exemption is applicable only in case of Long term capital gains under section 112A of the Income tax act.
Just confirm one's again STT paid or not in both the case's and reply.

Originally posted by : prasad Nilugal
	In both cases holding period is less than 12 months, therefore it's short term capital gains, 1lac exemption is applicable only in case of Long term capital gains under section 112A of the Income tax act. Just confirm one's again STT paid or not in both the case's and reply.

2nd case concerns LTCG, holding period above 1 year (Dec 2020 - Nov 2022). "STT is not paid/deducted in 2nd case." It is confirmed. Can ITR1 be used if LTCG is below Rs. 1 lac (i.e 10k). (No logic behind to use ITR2, if proceeds are not taxed, more over such information of mutual fund redemption is already available in AIS.)

(*Regarding 1st case concerning STCG, STT paid/not paid, information is unclear,  therefore shall be skipped*. Sorry for that. Only focus on LTCG, for time being.)

This thread needs an update for AY 2026-27.

Until AY 2025-26, the old answers were correct: any capital gains required ITR-2.

From AY 2026-27, CBDT expanded ITR-1 eligibility. You can now file ITR-1 with equity MF gains if:
- LTCG under Section 112A is below Rs 1.25 lakh
- No brought-forward or carry-forward capital losses
- No STCG under Section 111A from equity shares or MFs (STCG from equity still requires ITR-2)

For the scenarios in this thread:
- Rs 10,000 LTCG from equity MF: ITR-1 eligible (below 1.25L, no losses)
- Rs 12,000 STCG from equity MF under Section 111A: ITR-2 still required

For FY 2025-26 filing: if your gain is purely LTCG under 112A, below Rs 1.25L, and no BF losses, ITR-1 works. Any STCG from equity means ITR-2.

For the full ITR form selection guide for AY 2026-27, see Tax Garden [income tax filing services](https://taxgarden.in/services).