Small LTCG on ITR

My mother is Pensioner and used to file ITR-1 for income tax processing. In 2015 she had invested Rs. 25000 in a equity mutual fund and redeemed it last year (October 2019) with capital gain of Rs. 1514.

My question is, how should she show this Long term Capital gain (of Rs. 1514) in ITR-1? Should it be under “Other income” head or under “Exempt Income”? OR Does she need to file ITR-2 for this partly amount altogether? Note that her Net Taxable income (after exemptions) is less than 2.2 Lakhs, but needs to file return to get refund back for TDS deducted on a term deposit).

 

Replies (9)
Quick Summary
This discussion addresses how a pensioner should report a small Long Term Capital Gain (LTCG) of Rs. 1514 on their ITR-1. While some suggest reporting it under 'Other income' or 'Exempt Income', the consensus leans towards using ITR-2 for capital gains. However, due to the gain being under Rs. 1 lakh, it's exempt from tax under Section 112A, even though it needs to be declared. The advice is to report it in the LTCG section, which should then be treated as exempt income, rather than under the 'Exempt Income' schedule directly.

No need to file ITR 2. Show this under exempt income schedule of ITR 1.

1514 is taxable income, but no tax is payable by virtue of section 112A since capital gain is less than 1 lakh.

Form ITR-2 is the appropriate form prescribed.

Thank you to both of you, but I am getting contradicting solutions. Mr. Seetharaman suggesting ITR-1 can be used whereas Mr. Warrier advising to fill ITR-2. Sorry, but now I am confused.

File ITR 2 as advised by Mr Warrier as the income related to capital gains 

Thank You for the confirmation.

I filled ltcg of 889 in ltcg section, but it is not considering it as exempt income..

 

How is the exempt income considered? In which schedule should we mention the exempt amount? In schdule EI under other exemptions tab?

No need to show it under exempt income.

Show it under long term capital gains it will be exempt under taxable income schedule

 

Few years ago, on the old EFling website when LTCG was totally exempt from tax, the ITR1 utility did allow reporting of tax free LTCG amount and also Tax free Dividend amount. There was a section to report these items on ITR1.

Since now, the LTCG is taxable and Dividend also taxable, ITR1 on new tax portal may not carry these sections. 

Hence, only ITR2 will be applicable.

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