Filing income tax returns with transactions can be a complex process. Here’s a brief overview of how transactions are reported in various ITR forms (ITR-1, ITR-2, ITR-3, and ITR-4):
ITR-1
ITR-1 is for individuals with income up to ₹50 lakh from salary, one house property, and other sources. It is not suitable for reporting stock transactions or capital gains.
ITR-2
ITR-2 is for individuals and HUFs not having business income. It is used to report capital gains from stock transactions, requiring detailed transaction information.
ITR-3
ITR-3 is for individuals and HUFs with business or professional income. It includes schedules for reporting capital gains from stock transactions, similar to ITR-2.
ITR-4
ITR-4 is for individuals, HUFs, and firms under presumptive taxation with income up to ₹50 lakh. It does not support reporting stock transactions or capital gains.
Other Tips:
- Maintain detailed records of each transaction.
- Utilize tax filing software that can handle bulk upload bulk transactions.
- Consult a tax professional to ensure accurate reporting and compliance.
- Cross-check your transactions with Form 26AS and the Annual Information Statement (AIS) to ensure consistency.