By Chirag Nangia
I am in the Rs 30-lakh tax bracket. I am salaried and have mutual fund investments of more than one year. I am arranging redemption of some of these. Which ITR kind need to I file? Is tax on LTCG applicable on the entire redemption quantity or the quantity more than Rs 1 lakh?
—Sanjay Khar
Since you have revenue beneath head Salary and Long term Capital Gain (LTCG), you shall be essential to file your Income Tax Return in Form ITR 2. Further, capital gains arising from transfer of lengthy term capital assets getting equity shares/ or units of an equity-oriented fund, shall be taxed at the price of 10% of such capital gains exceeding Rs 1 lakh. Therefore, in your case, assuming that mutual funds are equity-oriented, LTCG more than and above Rs 1 lakh shall be taxed at prescribed price.
I am a senior citizen with central government pension, bank interest, dividends and capital acquire on sale of shares. During FY 2020-21, I made capital gains on sale of shares. I sold some units of a balanced benefit fund at lengthy term capital loss. How can I adjust the acquire and the loss?
—Pankaj Oak
As per the Income Tax Act, lengthy-term capital loss could be set off against revenue beneath head lengthy term capital acquire in a economic year. Therefore, you could set-off your lengthy term loss from sale of mutual funds against lengthy term acquire on sale of shares for FY 2020-21.
I have salaried revenue of about `6 lakh. I have completed some share trading each in equity delivery and F&O segments. The equity trading incorporates each intra-day as effectively as lengthy-term trades. I have no other supply of revenue like home home, and so on. Which ITR kind need to I file?
—Rajesh P
Income from intra-day trading is classified as organization revenue, taxable beneath head ‘profits and gains from business and profession’. In case of investing, a sale transaction offers rise to capital gains, which could be classified as lengthy-term or quick-term based upon the period of holding. You could disclose revenue in Form ITR 3 that has been notified for folks which includes salaried folks, getting revenue from organization and profession. Capital acquire/ loss (if any) could also be disclosed therein.
The writer is director, Nangia Andersen India. Send your queries to