This Form must not be used by persons who are required to file the return in Form no. If the income under business, profession or capital gain, or house property is a loss, the return must be filed within the prescribed date otherwise the benefit of carry forward of loss will not be admissible. Gross total income from businessor profession is required to be shown here. Net income as appearing in your profit and loss or income and expenditure account is to be adjusted by allowable expenses, admissible claims not charged to the account, deemed income, etc., to arrive at the gross total income. Attach separate annexure showing the gross total income.
Capital gains are to be shown separately for short term and long term.
For shares the period of holding for long term is more than 12 months. The dates 15th September, 15th December, 15th March have ramifications on installments of advanced tax payable in relation to capital gains. For computation of long term Capital Gains the assesse has two options. The Income Tax Department releases the cost of inflation index for this purpose every year as given in the table below. Only net income from other sources such as interest, income from UTI, etc. should be shown in this item.