I earned an STCG of around ₹12 this Financial Year. Should I continue filing ITR-4 to avail 44ADA or file ITR-3 to report this STCG?

[CosmicCat]

I earned around ₹12 Short-Term Capital Gains (STCG) this financial year (FY 2023-24) by closing several debt mutual funds, which I had opened this financial year only just for exploration, as I got started with Mutual Funds recently. Their total purchase amount was around ₹5,000 only.

I have attached a picture here of how it is reported in my AIS.

I have been filing ITR-4 all these years as I'm a Self-Employed Professional (Software Engineer) and availed 44ADA each time.

AFAIK, ITR-4 doesn't have any provision to mention capital gains, because I have been filing my taxes myself all these years, and never noticed the option to mention capital gains.

So, should I file ITR-3 by mentioning this ~₹12 STCG? Or continue filing ITR-4 (To avail 44ADA) and exclude this STCG?

As I don't have any CA to seek guidance from nearby me, so can please anybody help me out with this query? I would really appreciate your help.

 

[Saipsy]

Capital gains itr2

 

[CosmicCat]

Capital gains itr2

Bruh, ITR-2 is not for business income or professionals; It's for salaried employees only. Please refrain from commenting unless you know the details correctly.

 

[iBabubhau]

Put the Rs. 12 under income from other sources and file under ITR 4. But would recommend to consult a professional CA for help

 

[Saipsy]

My ca fills itr2 whenever I have capital gains

 

[moneyMaker]

lol, someone automate this shit ASAP.

 

[CosmicCat]

lol, someone automate this shit ASAP.

If only there was a common ITR form, this would have been a lot easier. Also, finding a good CA—or even a CA nearby, for that matter—is as difficult as finding a needle in a haystack.

 

[SSV]

a good CA

Very very hard to find this .. Most of the times we end up teaching them that they don't know...

 

[SSV]

My ca fills itr2 whenever I have capital gains

Because you don't have any income from Business or profession..

 

[CosmicCat]

I earned around ₹12 Short-Term Capital Gains (STCG) this financial year (FY 2023-24) by closing several debt mutual funds, which I had opened this financial year only just for exploration, as I got started with Mutual Funds recently. Their total purchase amount was around ₹5,000 only.

I have attached a picture here of how it is reported in my AIS.

I have been filing ITR-4 all these years as I'm a Self-Employed Professional (Software Engineer) and availed 44ADA each time.

AFAIK, ITR-4 doesn't have any provision to mention capital gains, because I have been filing my taxes myself all these years, and never noticed the option to mention capital gains.

So, should I file ITR-3 by mentioning this ~₹12 STCG? Or continue filing ITR-4 (To avail 44ADA) and exclude this STCG?

As I don't have any CA to seek guidance from nearby me, so can please anybody help me out with this query? I would really appreciate your help.

Friends, can anyone please ask a CA about this? Or answer this if you know the answer? I'm literally having a hard time finding a CA around here. Most of them around here are tax consultants or lawyers, but are not CAs.

 

[rp0703]

Friends, can anyone please ask a CA about this? Or answer this if you know the answer? I'm literally having a hard time finding a CA around here. Most of them around here are tax consultants or lawyers, but are not CAs.

Just file ITR 4 as usual and show capital gains income under the head capital gains. ITR 3 is for business if you are maintaining books of accounts.

 

[SSV]

Friends, can anyone please ask a CA about this? Or answer this if you know the answer? I'm literally having a hard time finding a CA around here. Most of them around here are tax consultants or lawyers, but are not CAs.

DOn't worry.. I will ask my CA friends..

Please elaborate your question with some more details here , if anything to add other than your thread title..

 

[CosmicCat]

Just file ITR 4 as usual and show capital gains income under the head capital gains. .

Sir, that's the problem. ITR-4 has no head for the Capital Gains. Only ITR-2 and ITR-3 do. Please view the ITR-4 form here: https://incometaxindia.gov.in/forms/income-tax rules/2023/itr4_english.pdf

ITR 3 is for business if you are maintaining books of accounts.

ITR-3 is for individuals and HUFs having income from profits and gains of business or profession. But, yes, maintaining the books of accounts is a mess and irrelevant, in my case. Which is why ITR-4 is amazing, but it sucks when you have capital gains. ITR-3 is a mess to fill for even the CAs.

 

[CosmicCat]

DOn't worry.. I will ask my CA friends..

Please elaborate your question with some more details here , if anything to add other than your thread title..

Thank you so much, @S S V Sir. I really appreciate your help. 🙏

No, there's nothing more to add. Please share my full post with them and the screenshot I've attached in it. It would make it clearer for them.

Thanks, once again.

 

[rp0703]

Sir, that's the problem. ITR-4 has no head for the Capital Gains. Only ITR-2 and ITR-3 do. Please view the ITR-4 form here: https://incometaxindia.gov.in/forms/income-tax rules/2023/itr4_english.pdf


ITR-3 is for individuals and HUFs having income from profits and gains of business or profession. But, yes, maintaining the books of accounts is a mess and irrelevant, in my case. Which is why ITR-4 is amazing, but it sucks when you have capital gains. ITR-3 is a mess to fill for even the CAs.

Yupp my bad. I use software to file income tax returns and software automatically picks the ITR form as per the income entered. You have to file ITR 3.

 

[SSV]

Thank you so much, @S S V Sir. I really appreciate your help. 🙏

No, there's nothing more to add. Please share my full post with them and the screenshot I've attached in it. It would make it clearer for them.

Thanks, once again.

Just now finished talking to my friend / disciple.....

1) If you want to be 100% compliant , you need to file ITR3.
2)if not, you can file ITR4 and if there is any notice, then you have to explain..
For this to defend ourselves, he said you should not have conducted many transactions , preferably in single digits only..

After talking to him, I whatsapped him your SS and question..
See his answers..

BTW, where are you from ??

 

[hariselio]

Isn't simple to lose that 12Rs in another stock trade and make your capital gain 0 as you are already in the same FY. And continue to file ITR4?

 

[CosmicCat]

Just now finished talking to my friend / disciple.....

1) If you want to be 100% compliant , you need to file ITR3.
2)if not, you can file ITR4 and if there is any notice, then you have to explain..
For this defend ourselves, he said you should not have conducted many transactions , preferably in single digits only..

After talking to him, I whatsapped him your SS and question..
See his answers..

BTW, where are you from ??

Ah, thank you so much @S S V ji.

I'm from Kolkata.

But there are just 4 transactions only of the sale of the debt mutual funds, all of which are displayed in the screenshot of my AIS I shared. Nothing more is mentioned in my AIS except FD interest and the purchase of mutual funds of these 4 debt funds, and one purchase of equity fund.

I get income in foreign currency via SWIFT transfer from ONE source only, but that never gets mentioned in the AIS.

BTW, in that screenshot of my AIS, under the column "Indexed Cost of Acquisition," it's showing 0 for each one. And even the same for "Unit FMV." Does that mean I can simply ignore it and wouldn't get a notice? Can you ask them again?

I feel depressed now for the mistake I made.

 

[rp0703]

Ah, thank you so much @S S V ji.

I'm from Kolkata.

But there are just 4 transactions only of the sale of the debt mutual funds, all of which are displayed in the screenshot of my AIS I shared. Nothing more is mentioned in my AIS except FD interest and the purchase of mutual funds of these 4 debt funds, and one purchase of equity fund.

I get income in foreign currency via SWIFT transfer from ONE source only, but that never gets mentioned in the AIS.

BTW, in that screenshot of my AIS, under the column "Indexed Cost of Acquisition," it's showing 0 for each one. And even the same for "Unit FMV." Does that mean I can simply ignore it and wouldn't get a notice? Can you ask them again?

I feel depressed now for the mistake I made.

Since gain is short term that's why Indexed cost is 0. Unit FMV only applicable for Equity Mutual Funds purchased before 31-01-2018.

Also why are you worried for just Rs. 12 only?

 

[CosmicCat]

Since gain is short term that's why Indexed cost is 0. Unit FMV only applicable for Equity Mutual Funds purchased before 31-01-2018.

Thanks for the info.

Also why are you worried for just Rs. 12 only?

That's because I won't be able to avail 44ADA if I file ITR-3, and would have to pay more tax as a result.

Also, I don't have books of accounts or any record either, because technically I'm working for a SINGLE off-shore company only as a Software Developer.

I've heard of someone who paid a few lakhs as income tax, but still got notice from the Income Tax Department, because his calculations were off by some 70 rupees or something.

Since the IT department systems are automated now, so if I miss the STCG income of ₹12 and miss the calculation or even if I fill it in another head, they might not accept my ITR.