ITR 1, 2 and 4 are available for e-filing

[pokerbob]

ITR 1 and ITR 4 were available earlier. Now ITR 2 is also available for e-filing for FY 2019-20.

For most people with Capital gains, ITR 2 is the applicable return.

Even for NRIs, the most common return is ITR 2.

For easy reference, details below on people who can use ITR 1, 2 and 4.

ITR 1 - For Individuals being a Resident (other than Not Ordinarily Resident) having Total Income upto Rs.50 lakhs, having Income from Salaries, One House Property, Other Sources (Interest etc.), and Agricultural Income upto Rs.5000 (Not for an Individual who is either Director in a company or has invested in Unlisted Equity Shares)

ITR 2 - For Individuals and HUFs not having income from profits and gains of business or profession

ITR 4 - For Individuals, HUFs and Firms (other than LLP) being a Resident having Total Income upto Rs.50 lakhs and having income from Business and Profession which is computed under sections 44AD, 44ADA or 44AE
(Not for an Individual who is either Director in a company or has invested in Unlisted Equity Shares)

Go ahead and file your returns early so you can get refund quickly!

 

[heliumskylark]

@pokerbob Honestly, I still don't know why they don't add capital gains in ITR-4. It makes this form utterly useless for any self-employed or businessman who have investments in mutual funds, gold or property etc.

Gotta wait for ITR-3 again this year and this form is a monster and a complicated web of mess to say the least. I don't know how they expect any ordinary self-employed guy to fill this form. May be they keep it complicated to keep the CA community in business. Gotta pay someone to make sure the government gets paid.

 

[pokerbob]

@heliumskylark Honestly there's no answer. Almost every business owner has some sort of capital gains.

It's most frustrating when someone has to file an ITR 3 for just one stock sale during the year.

Unfortunately, you're right. Easiest solution is to get a CA to do it. We're actually trying to develop a different model where we charge lower fee if someone just wants consultation on how to file the ITR and wants to do it themselves. Still working out the details on that though.

 

[resjudicata]

@pokerbob Sorry for hijacking this post. But, is there a good resource to learn about taxes in India ?

 

[pokerbob]

@resjudicata Honestly, want to avoid self promotion. But you can read the FAQs and articles on our website. See link in profile. Not posting here to avoid being spammy.

You can also refer to Cleartax and Taxguru (Taxguru may be slightly more complicated since it's geared more towards the CA community).

 

[wolfbird]

@resjudicata If you want general overview of overall tax system, you can use the official website of invest India.

Taxation in India

 

[crixus123]

@resjudicata Start with Income Tax Basics for Beginners by ClearTax

 

[bioluminescence]

@pokerbob For a salaried employee, not under the tax bracket, but want to disclose STCL (less than 2k), is it better to file ITR 2 or ITR 1

 

[pokerbob]

@bioluminescence If you have short term capital loss, file ITR 2.

There's no option to show STCL in ITR 1.

 

[bioluminescence]

@pokerbob Thanks for the prompt reply.

 

[kingdomconsul]

@pokerbob Being an NRI, if i fill the ITR as a resident, do I land in any trouble? I dont have any investment in stocks & MF in last FY. But I do have FDs worth about 2-3 lakhs.

 

[pokerbob]

@kingdomconsul Please do not do this.

As a resident, your worldwide income would become taxable. You may receive a notice from the income tax department to pay tax on your overseas income. Then you'll have to file a revised return and may also have to prove that you were a Non resident in the relevant year and the return was filled as a Resident in error.

It's unnecessary complications. Would strongly advice against this.

 

[kingdomconsul]

@pokerbob Ok understood.

 

[willc233]

@pokerbob For salaried employee with short term capital gains from liquid funds and equity intraday and long term capital gains from equity mf - Is itr 2 the right form?

 

[pokerbob]

@willc233 Yep. ITR 2.

 

[willc233]

@pokerbob Thank you! Can I use capital gains reports from Zerodha, Kuvera etc. and calculate everything on my own? Do I need to verify anything with CA if I want to adjust for losses?

 

[pokerbob]

@willc233 Yes you can use the reports from the brokers/ AMC. Just cross verify different statements to make sure you're reporting the correct amount - For example, cross verify the capital gains statement with transaction statements and contract notes.

It's preferable to let a CA do it just to ensure you're doing it right. But if you're comfortable doing it yourself, you definitely can.

 

[willc233]

@pokerbob Thank you so much! Appreciate what you are doing here. Will definitely checkout your site and reach out if needed

 

[pokerbob]

@willc233 More than happy to help

 

[thoughtlessdepth]

@pokerbob ITR 2 is still half baked. Java utility pending.