New Delhi, June 7 -- If you sold equity shares, redeemed mutual funds, or sold a property during FY26, you may have capital gains that need to be reported while filing your income tax return this year (AY 2026-27). However, not all capital gains are taxed or reported in the same way.

The applicable tax rate depends on the type of asset sold and the holding period, while the ITR form depends on the nature of your income. Therefore, understanding the reporting requirements before filing your return can help avoid errors, defective return notices and issues with carrying forward losses.

The first step is choosing the correct return form.

Resident individuals with total income up to Rs.50 lakh may be eligible to file ITR-1 (Sahaj) if their...