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Query Related to ITR - 1 and ITR - 4

sanjoy saha (Assistant Accountant) (77 Points)

17 May 2023

One of my Client having Pension Income and done some Share/Mutual Fund Trading which is showing on AIS Report. And Another Client having small business Income and the Same Share/Mutual Fund Tradings in his AIS Report. So I Want to know that is there any way to declare the Share/Mutual Fund Profit/Loss in ITR - 1 and ITR- 4??

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B Durga Prasad (Student) (175 Points)
Replied 17 May 2023

If your client has only pension income and share/mutual fund trading income, and no other business or professional income, they may be eligible to use the ITR-1 form. However, it's crucial to note that ITR-1 does not provide specific provisions for reporting trading activities. In this case, you would generally report the pension income in the respective field for pension in the ITR-1 form, but there may not be a specific provision to report share/mutual fund trading profit or loss.

If your second client has small business income and share/mutual fund trading income, they may be eligible to use the ITR-4 form. The ITR-4 form includes provisions for reporting business income, including presumptive income under the mentioned sections. The share/mutual fund trading activity can be reported as a business activity, and the profit or loss from such trading can be included in the computation of business income in the ITR-4.
To learn more about ITR - 2 & ITR - 4

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