I am a complete noob and this is the first time filing ITR. So I purchased some 5 units of GIFT NIFTY ETF and sold it within a week. The amount is not huge though, just around 1k. I saw in some websites that profits earned through capital gains are filed with ITR-2. I also purchased a mutual fund. Since the amount is not that big, can I file with ITR 1 or should proceed with ITR-2?
You must use ITR-2, even if the profit is only ₹1,000.
- Any sale of shares, ETFs (including GIFT NIFTY ETF) or mutual-fund units creates capital gains—whether the amount is ₹1 or ₹1 lakh.
- Indian tax rules do not allow capital-gains income in ITR-1 .
- The only exception is long-term equity gains up to ₹1.25 lakh reported under section 112A, and that too only if you have no other capital gains .
- Your short-term trade (held < 12 months) does not qualify for this relaxation, so ITR-2 is compulsory.
Heres a small guide I find on this community
