Whether IT4 (Fy-24/25) can be used to report LTCG less than 1.25L?

You can use ITR-4 (Sugam) for the current assessment year, given your income sources and the long-term capital gains (LTCG) from mutual funds being less than ₹1.25 lakh. Here's a breakdown.

- *Eligibility for ITR-4*: This form is suitable for individuals and entities with business income under presumptive taxation schemes, having total income up to ₹50 lakh, and LTCG under Section 112A up to ₹1.25 lakh without any capital losses to carry forward.

- *Income Sources Covered*: ITR-4 can accommodate your income sources, including: - *Business Income*:

From presumptive taxation - *Interest Income*: From fixed deposits (FD) and savings bank (SB) accounts - *LTCG*: Up to ₹1.25 lakh from mutual funds - *Salary/Pension*: ₹6,000 per annum - *Dividend Income*: ₹100 - *Key Considerations*:

 Ensure your total income doesn't exceed ₹50 lakh, and you don't have any capital losses to carry forward.

 Given your situation, ITR-4 seems suitable, but it's always a good idea to consult a tax professional to confirm and ensure compliance with all tax regulations.

ITR-4 with business, interest and mutual funds (FY 2024-25):

• ITR-4 is allowed with presumptive business income, interest, and LTCG under 112A up to Rs 1.25 lakh (from AY 2025-26). If you have other capital gains (debt MFs, STCG on equity MFs, LTCG above Rs 1.25 lakh), use ITR-3.

ITR-4 cannot be used if you have taxable long-term capital gains from mutual funds, even when the gain is only ₹70,000 and below the ₹1.25 lakh threshold. That threshold is the Section 112A exemption limit for certain equity-oriented gains; it does not make those gains exempt from reporting or remove the ITR-4 restriction on income under the head “Capital gains.” Use ITR-3 if you have business income under presumptive taxation and such capital gains.

Interest, dividend and pension income can generally be reported alongside business income in ITR-4, subject to its other eligibility conditions. If the mutual-fund gain is not taxable or is not chargeable under “Capital gains,” confirm its character and reporting before choosing the form; the fund type and transaction details matter.

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