Answer

1. F

   Facts

   If you have short-term gains, long-term gains above ₹1,25,000 under Sec 112A, or gains on property or debt funds, you need ITR-2. Small Sec 112A long-term gains up to ₹1,25,000 can be shown in ITR-1 for AY 2026-27.

2. P

   Provisions and law

   • Rule 12, Income-tax Rules 1962 (now Rule 164, Income-tax Rules 2026)Prescribes the ITR forms and who must use which form.
   • Sec 111A, Income-tax Act 1961 (now Sec 196, Income-tax Act 2025)Short-term gains on listed equity.
   • Sec 112A, Income-tax Act 1961 (now Sec 198, Income-tax Act 2025)Long-term gains on listed equity.
3. A

   Analysis

   Say you had ₹80,000 long-term gain on equity funds and nothing else. ITR-1 may work. But if you also had ₹20,000 short-term gain, you need ITR-2. Get the capital gains statement before deciding.

4. C

   Conclusion

   1. 1Download capital gains statements.
   2. 2Separate short-term and long-term gains.
   3. 3If any short-term or larger gains, use ITR-2.
   4. 4Report each sale correctly.

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