Income tax payment for first timers

Income Tax ITR Filing
1

Hi Team,

Consider below scenario for my friend

a. He has shares whose purchase price is 4Lakh.
b. He has never filed income tax returns so far
c. Last year he has had short term gains: Rs 5000, long term gains: - Negative 12,000 and dividend of Rs 20,000
d. Should he need to pay any taxes?
e. Does he need to show source of income?

2

Hey @Punit_T,

If this is the only source of income, there will be no tax liability. Moreover, it is better to file the ITR as the Long-term losses can be carried forward and adjusted against gains in future.