Answer

1. F

   Facts

   For AY 2026-27, ITR-1 allows long term gains under Sec 112A up to ₹1,25,000 with no losses to carry. Any short term gain, larger long term gain, property sale or capital loss needs ITR-2. Trading in F&O or intraday needs ITR-3.

2. P

   Provisions and law

   • Sec 112A (now Sec 198)Long-term gains on listed equity taxed at 12.5% above ₹1,25,000 a year (transfers from 23 July 2024)
   • Sec 111A (now Sec 196)Short-term gains on listed equity shares and equity funds taxed at 20% (transfers from 23 July 2024)
   • Sec 139(1) (now Sec 263(1))Return must be filed by the due date for the year
3. A

   Analysis

   If your only sale was equity funds with a long term gain of ₹80,000 and no losses, ITR-1 works. If you also sold shares held for 8 months for a ₹20,000 gain, that is short term under Sec 111A (now Sec 196) and pushes you to ITR-2. F&O and intraday trading are business income, so neither ITR-1 nor ITR-2 fits. Picking the wrong form can lead to a defective return notice.

4. C

   Conclusion

   1. 1List every sale in the year with holding period and gain.
   2. 2Check for short term gains, losses or property sales.
   3. 3Choose ITR-2 if any of these exist, or ITR-3 for trading.
   4. 4Download the broker and fund statements before starting.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.