By Chirag Nangia
l I am a pensioner and file ITR-1 every year. In 2019-20, I had some capital gains/loss (both STCG and LTCG) in sale purchase of shares. Please advise:
(A) Do I have to file ITR-2 for AY 20-21 and will I get the standard deduction in ITR-2 also?
(B) Can ITR-2 be filed online?
(C) Is there a threshold value for reporting LTCG and STCG in ITR? I guess LTCG over Rs 1 lakh is taxable? —Bhramar
(A) ITR-1 is for individuals having total income up to `50 lakh and deriving income from salary, one house property, income from other sources (interest, etc.), agricultural income up to `5,000 but does not include income from capital gains. ITR-2 is for individuals earning income from sources other than ‘business or profession’ such as salaries, more than one house property, capital gains, etc. Since you have income from both, salary and capital gains, you have to file ITR-2. You can claim standard deduction in ITR-2 from salary up to a maximum of Rs 50,000.
(B) You can file ITR-2 by visiting e-filing portal and downloading the offline ITR-2 utility under ‘Income tax return preparation utilities’ and uploading the XML generated after entering all details in the ITR form. The facility to file ITR directly online at e-filing portal is available only in case of ITR-1 and ITR-4 but not for ITR-2.
(C) LTCG on sale of listed equity shares for individuals, in excess of `1 lakh are taxable as income from capital gains. However, a person who is eligible to furnish ITR shall mandatorily disclose all incomes and losses in ITR even if the income is exempt under the income tax law. The exemption is automatic and you shall have to report the same in ITR.
l If a person has a salary income of Rs 5 lakh and some profit and loss on intra-day transactions, which income tax returns should she file? —CS Amrita Gupta
Intra-day trading of shares is in the nature of speculative business income and you shall be required to file ITR 3. Income from STCG/ LTCG may also be reported in the same form.
l I bought a plot of land. Seller wants a photocopy of registry as proof of buyer. Is it safe to give it? —Rudrasen Pal
Since the property is registered in your name, there may not be any harm in giving copy of the registry to the seller.
The writer is director, Nangia Andersen Consulting. Send your queries to firstname.lastname@example.org