Which ITR type should one select if he/she is a salaried person in one firm and a proprietor in another firm? What is the tax on short term (within a year) capital gain if total gain in a year is below Rs 1 lakh?
Amit Maheshwari, Partner, AKM Global, replies: Income from proprietorship is classified as Business Income. Hence, the individual will need to select Form ITR-3 for reporting of salary and business income. However, if the person is availing any presumptive scheme of taxation u/s 44AD, 44ADA, etc. for business income, then the person should select Form ITR-4 for reporting these incomes. Besides, you haven't clarified the nature of assets from which the short term capital gains is realised. If the gain is from sale of listed equity shares or equity oriented mutual funds, then the gain shall be taxed at the rate of 15% irrespective of the amount of gains. However, if it is from any other asset like immovable property, etc, then it shall be taxed as per the slab rate applicable to the individual.
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