I have filled ITR1. It covers dividend money and bank interest. I have made few transaction in this assessment year in my Equity and MF (bought and sold). I didn’t get any profits from that. I lost around 400 rupees. I filled my ITR by myself. I have no idea to file the ITR2. So I filled ITR1. During ITR1 filling I have paid additional tax for my dividend money (around 150).
My question is, Will this cause any issue?
Filing ITR1 instead of ITR2 may lead to errors, rejections, or penalties. Always choose the correct form based on your income sources to ensure hassle-free tax compliance.
Hi @ajays9322,
Filing ITR‑1 while also having equity or mutual fund transactions is technically not correct, because ITR‑1 cannot be used for capital gains/losses. However, since your trading resulted in a small loss of around ₹400, it won’t cause any major issues.
The additional tax you paid on dividend income is fine; it will be considered while processing your ITR.
For future filings, it’s better to use ITR‑2 whenever you have any capital gains or losses from equity/MF transactions, even if the net gain/loss is small.
You don’t need to revise this ITR unless the tax department asks for clarification, but for accuracy and loss carry-forward, using ITR‑2 next time is recommended.
Thanks for the reply @Diti_Savalia . Will ensure this next time.