Which form to File ITR1 or ITR2 with non taxable capital gain

My wife (home maker having only interest from FD and dividend from Mutual Funds) sold one Mutual fund in april 2024 making gain of 94000 and sold one share in december 2024 making a loss of 34. can she combine these entries into a total of 93966 in ITR1 or should she file only ITR2 with separate entries.

Replies (5)
Quick Summary
This discussion clarifies whether to use ITR1 or ITR2 when an individual has non-taxable capital gains. For Assessment Year 2025-26, ITR1 can be used if the total long-term capital gain (LTCG) from listed shares or equity mutual funds is up to £1.25 lakh. If the gain is short-term or exceeds this limit, ITR2 must be filed. Even when using ITR1 for exempt capital gains, it should still be disclosed under the 'exempt income' section.

@ Venkatesan V

It is clearly mentioned on I-T Efiling Portal, that for AY2025-26, for Capital Gains upto 1.25Lakh ITR-1 is to be used.

Thanks,

This is the first time we have capital gains/loss transactions and wanted to be sure that the capital gain/loss transactions can be summed up to a single entry in ITR1.

Only worried that IT Dept  should not later say that wrong ITR filed and ITR2 to be filed giving the full details etc.,

@ Venkatesan V.

Forgot to mention :-

The capital gains for using ITR-1 must be LTCG.

If gains are STCG then ITR-1 not being allowed and filing with ITR-2 is a very tough task now. Refer many other threads about ITR-2 filing problems.

I already replied to your pvt msg

For AY 2026-27, CBDT has updated ITR-1 to allow LTCG from listed shares or equity mutual funds if the total gain is up to Rs. 1.25 lakh. So if your capital gain is long-term, below that limit, and from listed equity, you can use ITR-1. You still need to disclose it under the exempt income section. If the gain is short-term, or crosses Rs. 1.25 lakh, you need ITR-2.

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