The sale of shares of any other capital asset will give rise to ‘income under the head capital gain’ and there is no provision in ITR-1 for declaration of such income. While holding of listed shares does not require separate declaration and the taxpayer can use ITR-1 in the year when such shares or any other capital assets (movable or immovable) are sold, the taxpayer would be required to file his tax return in ITR-2 or ITR-3. As these are part of an individual’s personal investment and reporting the same helps in better tax monitoring and transparency, such resident individuals are required to file their income tax return in ITR-2 or ITR-3. Since these shares are not listed, the department provides an additional section for reporting details of unlisted shares which is not available in ITR-1. This is mainly observed in startups where employees are offered shares in the form of ESOPs. Such declarations are required to be made in ITR-2 or ITR-3. The same goes for any bank account held outside India. But, in such cases, resident individuals are required to declare particulars of the assets located outside India and such declaration cannot be made in ITR-1. Holding shares in foreign companies is very lucrative. For such taxpayers, if any income is received from outside India, he would be required to file his income tax return in ITR-2 or ITR-3 and not ITR-1.Īssets (including financial interest) located outside India Working from home has opened up opportunities for several resident individuals to work from India directly with companies abroad. Income received from any source outside India In such cases, resident individuals cannot file their income tax returns in ITR-1. This is different from retainership fees received for consultancy services including fees received by a director of a company. Earning Rs 6 lakh, Rs 8 lakh, Rs 10 lakh or Rs 12 lakh? Pay this tax without deductionsįor an income to qualify as ‘income from salary’ the crux is an employment contract that clearly establishes an employer-employee relationship.
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