Where to Show Mutual Fund Investment in ITR 1

Tax
1

I should show my mutual fund investment in ITR 1, right?

2

When I first started filing my taxes, the biggest confusion I had was where to show my mutual fund investments in ITR 1. Over time, I realised it’s actually quite simple once you know the structure.

Salaried individuals with income up to ₹50 lakh use ITR 1, and it allows them to disclose certain mutual fund investments. However, you must know what to show and where.

  • If you’ve invested in ELSS mutual funds (tax-saving schemes), you should claim them under Section 80C.
  • If you’ve earned dividends from mutual funds, they need to be shown under “Income from Other Sources.”
  • But if you’ve redeemed mutual funds and made capital gains, then ITR 1 is not the right form. You must use ITR 2.

Understanding this rule saves me both time and mistakes during filing ITR. So, if you only invested and didn’t sell, stick with ITR 1 and fill your deductions carefully. But the moment you redeem, step up to ITR 2 and report those gains properly.