Question 1

I work in finance in Mumbai and have F&O trading losses. How are they treated?

Accepted Answer

F&O (Futures & Options) income is treated as business income under Section 43(5), not capital gains. Losses can be set off against other business income and carried forward for 8 years. This requires ITR-3 and a tax audit if turnover exceeds ₹1 crore (or ₹10 crore for digital transactions).

Question 2

I have rental income from a Mumbai flat. How is it taxed?

Accepted Answer

Rental income is taxed under 'Income from House Property'. You get a standard deduction of 30% on net annual value, plus deduction for home loan interest under Section 24(b). Mumbai's high rental values make this a significant part of many clients' returns.

Question 3

I'm an NRI who recently returned to Mumbai. Do I need to file ITR?

Accepted Answer

Your residential status (Resident, NRI, or RNOR) determines your tax liability. In the year of return, you may qualify as RNOR (Resident but Not Ordinarily Resident), which exempts foreign income for up to 2 years. I determine your correct status and file accordingly.

Question 4

I have salary income from a Mumbai company plus dividend income. Which ITR form?

Accepted Answer

If your total income is below ₹50L with only salary, one house property, and other sources (including dividends), ITR-1 applies. If dividends exceed ₹10L or you have capital gains, ITR-2 is required.

ITR Filing in Mumbai — Starting ₹399

Frequently Asked Questions

Ready to file your ITR in Mumbai?

ITR Filing in Mumbai — Starting ₹399

Frequently Asked Questions

Ready to file your ITR in Mumbai?