Which ITR Should I File for Dividend and Capital Gains?
The answer depends on the type and amount of capital gains. An otherwise eligible resident individual may use ITR-1 where the only capital gain is qualifying section 112A LTCG within ₹1.25 lakh and all other conditions are satisfied; other capital-gains situations generally require ITR-2 when there is no business/professional income.
Quick Answer
Capital gain is generally determined by comparing the transfer consideration with the applicable cost and eligible expenses, then applying the holding-period classification and rate rules for the relevant asset and tax year. Special provisions can change the result for particular assets. The relevant asset or transaction named in this question should be identified before applying the capital-gains computation and rate rules. This page specifically addresses “Which ITR Should I File for Dividend and Capital Gains”.
Who can use the simpler ITR forms?
For AY 2026-27, ITR-1 covers eligible other-source income such as dividend and only the specified section 112A LTCG up to ₹1.25 lakh. It excludes short-term capital gains and section 112A LTCG exceeding ₹1.25 lakh.
What to check before choosing the ITR
If business/professional income is also present, examine ITR-3 versus ITR-4. ITR-4 is subject to its own capital-gains and eligibility limits.
When another ITR may be required
Reconcile dividend statements and broker capital-gains reports before selecting the form.
Practical filing tip
If you have both dividend income and capital gains, select the ITR based on your complete income profile and the nature of the investments. Keep dividend statements and transaction records ready before filing.
Related EZTax Questions
- Which ITR Should I File for Dividend Income?
- Which ITR Should I File If I Have Capital Gains?
- Who Can File ITR-2 for AY 2026-27?
