File ITR 2 If You Wish To Carry Forward Capital Loss

You can file ITR 1 if you do not want to claim any expenditure against your part-time tuition income. You can contribute to your daughter’s PPF and claim benefit under Section 80C. You need not mention the premiums paid for your pure term insurance product in the AL schedule of your ITR

Balwant Jain

Updated on: 6 April 2024 10:26 am

Filling ITR, Tax

Which income tax return (ITR) form should I use for financial year 2023-24 for my wife who is a house wife having interest income and some income from tuition work at home. Will she have to use a different form if she has some long-term capital loss (LTCL) from the sale of listed shares which she wants to carry forward?

Since your wife is not carrying out tuition activities on a full-time basis, the tuition fee received by her can be mentioned under the head ‘income from other sources’.

So, looking at the fact that she only has interest income and part-time tuition income, she can file ITR 1 for filing her income tax return, provided she does not want to claim any expenditure against the tuition income. Do note that if she wishes to claim any expenditure against her tuition income, she will have to use ITR 2. If there is capital loss which she wishes to carry forward, she has to use ITR 2.

I am a retired person and used to deposit money in my Public Provident Fund (PPF) account to get rebate under Section 80C of the Income-tax Act, 1961. My PPF account will mature on April 1, 2025. I do not want to extend this account. My unmarried daughter is working. She is also a taxpayer and has her own PPF account. From the next financial year, I wish to deposit money in my daughter’s PPF account from my account by cheque and claim deduction under Section 80C in my ITR. My tax advisor says that the rebate cannot be claimed as my daughter is employed and not dependant on me.

Under Section 80C, you can claim the tax benefits in respect of contribution towards a PPF account for yourself, your spouse and your children, even if they are financially not dependent on you. Even you can contribute to her PPF account after she gets married, and claim the tax benefit under Section 80C.

In the AL section of ITR for insurance details, which amount should I mention? Is it the sum assured or the premium paid by me till date that I need to mention? Will the position be the same even in respect of a term plan?

For disclosure of insurance amount under the AL schedule of ITR, you need to disclose the amount of premiums paid till date on the policy and not the sum assured, as the schedule is of assets and liabilities.

However, a term plan is a pure insurance product, where no money is payable to you during your lifetime. As such, you need not mention any amount in the AL schedule. However, you can still disclose the cumulative premiums paid on such policies in the AL schedule.

The author is a tax and investment expert

(Disclaimer: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)