Chapter 4 of 4

Filing your return with investments

6 min read

Investment income has to be reported even when tax has already been deducted. Gathering the right statements early makes filing straightforward.

Which form

• ITR-1 cannot be used if you have capital gains beyond the limited cases it allows, so most investors with capital gains use ITR-2.
• ITR-3 is for those who also have business or professional income, including regular futures and options trading.

Documents to gather

• Capital-gains statement from your mutual fund registrar and from your broker.
• Annual tax statement (Form 26AS or the Annual Information Statement) showing tax deducted and reported transactions.
• Dividend statements and TDS certificates.
• Records of any losses carried forward from earlier years.
• Details of ELSS or other deductions if you are using a regime that allows them.

Common mistakes

• Reporting only what your broker's statement shows and forgetting mutual funds, or the reverse.
• Applying the wrong purchase dates when units were bought through SIPs.
• Ignoring small dividend amounts, which still need to be reported.
• Filing after the deadline and losing the loss carry-forward.

This content is for education only and is not investment or tax advice. Mutual fund investments are subject to market risks; read all scheme-related documents carefully.