How to File ITR 2 Form with Capital Gains| ITR Filing FY 2025-26 (AY 2026-27)

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What is ITR-2 Form, and its eligibility criteria?

ITR Form 2, also known as ITR-2, is an income tax return form used by HUF (Hindu Undivided Families) and individuals in India to file their taxes with the Income Tax Department. It is for those who have income from various sources but not from business or profession.

Here's a list of income of those who are eligible to file ITR-2:

• Salaried or Pensioned Individuals: If your income exceeds ₹50 lakhs.
• Capital Gains: If you earn capital gains from the sale of shares, mutual funds, immovable property, or virtual digital assets.
• Rental Income: If you receive rental income from multiple house properties.
• Agricultural Income: If your agricultural income exceeds ₹5,000.
• Foreign Assets or Income: If you have foreign assets or earn foreign income.
• Directors: If you are a director in any company, whether foreign or domestic.
• Unlisted Equity Shares: If you hold unlisted equity shares in any company, foreign or domestic.
• Brought Forward Losses: If you have any brought forward losses or losses to carry forward under any head of income.
• Other Sources: If you earn income from other sources like horse racing, lottery winnings, etc.

Important Note: If you are earning from a business, profession, or partnership firm, you are not eligible to file the ITR-2 form.

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Key Changes in ITR-2 Form for FY 2025-26

The Income Tax Department has enabled filing for ITR-2 online. Here are the key changes in the ITR-2 Form introduced in FY 2025-26:

• Additional Details for Political Donations (Section 80GGC)
  Taxpayers claiming deduction for donations to political parties or electoral trusts must now also provide the political party’s name and PAN in the ITR.
• More Information Required for Donations under Section 80G
  While claiming deduction for charitable donations, taxpayers must now report the payment reference number (UPI/cheque/NEFT/RTGS, etc.) and the bank’s IFSC code.
• Reporting of Interest Income in Schedule OS Clarified
  Interest earned from companies, NBFCs, and HFCs, such as fixed deposit interest, should now be reported under the ‘Other’ category in Schedule OS.
• Simplified Capital Gains Reporting
  The requirement to separately report capital gains before and after 23 July 2024 has been removed, making capital gains reporting simpler for AY 2026-27.
• New Reporting Field for Certain Foreign Bond Interest Income
  A separate field has been added in Schedule OS to report interest income covered under Section 194LC, helping taxpayers match their TDS credits accurately.
• Simplified Details for Representative Assessee
  If the return is filed by a representative assessee, only the name, email ID, and contact number need to be provided instead of detailed address and PAN/Aadhaar information.

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A Brief Overview of Capital Gains

Capital gains refer to the profit earned from the sale of capital assets like stocks, real estate, mutual funds, or bonds. These gains are taxable under the Income Tax Act and are classified into:

• Short-Term Capital Gains (STCG): When assets are sold within a short holding period (varies by asset type).
• Long-Term Capital Gains (LTCG): When assets are held for a longer duration before selling, often taxed at concessional rates.

Taxation on capital gains depends on factors like holding period, asset type, and applicable exemptions under sections like 54, 54F, and 54EC.

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What are the Components of the ITR-2 Form?

The ITR-2 Form is divided into the following categories:

• Part A: General Information
• Schedule S: Details of income from salary
• Schedule HP: Details of income from house property
• Schedule CG: Computation of income from capital gains.
  • Schedule 112A: Income from sale of equity share of a company
  • Schedule 115AD: Income from sale of equity share of a company (for non-residents)
• Schedule OS: Computation of income from other sources.
• Schedule CYLA: Details of Income after Set off of current year losses
• Schedule BFLA: Details of Income after Set off of Brought Forward Losses of earlier years
• Schedule CFL: Details of Losses to be carried forward to future years .
• Schedule VIA: Deductions under Chapter VI-A (Section)
• Schedule 80G: Details of donations entitled for deduction under section 80G
• Schedule 80GGA: Donations for rural development and scientific research
• Schedule AMT: Computation of Alternate Minimum Tax payable under Section 115JC
• Schedule AMTC: Tax computation under Section 115JD
• Schedule SPI: Income of specified persons (spouse, minor child etc) includible in income of the assessee (income of the minor child, in excess of Rs. 1,500 per child, to be included)
• Schedule SI: Income chargeable to tax at special rates
• Schedule EI: Details of Exempt Income (Income not to be included in Total Income)
• Schedule PTI: Income from business trust or investment fund
• Schedule IT: Statement of payment of advance-tax and tax on self-assessment.
• Schedule TDS1: Details of tax deducted at source on salary.
• Schedule TDS2: Statement of tax deducted at source on income other than salary.
• Schedule FSI: Details of Income from outside India and tax relief
• Schedule TR: Summary of tax relief claimed for taxes paid outside India
• Schedule FA: Details of Foreign Assets and Income from any source outside India
• Schedule 5A: Information regarding apportionment of income between spouses governed by Portuguese Civil Code
• Schedule AL: Liability and assets at year end
• Schedule tax deferred on ESOP: Information of tax deferred on ESOPS
• Part B: TI: Total Income computation
• Part B: TTI: Tax liability computation
• Payment of taxes: Advance tax payment details
• Declaration: Taxpayer’s declaration
• Tax return preparer’s details

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Documents Required to File ITR-2

• Form 16 issued by your employer, showing your salary income and TDS details.
• Form 16A, if TDS has been deducted on interest earned from fixed deposits or savings accounts.
• Form 26AS to verify TDS deducted on your salary and other sources of income.
• Rent receipts for claiming House Rent Allowance (HRA), if they were not submitted to your employer.
• Capital gains statements for any transactions in shares, mutual funds, or other capital assets.
• Bank passbooks and Fixed Deposit Receipts (FDRs) to calculate interest income earned during the financial year.
• Documents supporting tax-saving deductions under Sections 80C, 80D, 80G, and 80GG, such as life and health insurance premium receipts, donation receipts, tuition fee receipts, and rent receipts.

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What are the steps to file ITR Form 2 with Capital Gains?

If you earn income through the sale of equity (Stocks), you must file an income tax return every year. Here's how to do it online through the Income Tax department portal:

Step-by-Step Guide:

• Step 1: Visit the official ITD (Income Tax Department) website and log in with your credentials.
• Step 2: Go to "e-File" > "Income Tax Returns" > "File Income Tax Returns."
• Step 3: Choose the assessment year, your filing status, and the appropriate ITR form. Select "Taxable income is more than basic exemption limit" as the reason for filing.
• Step 4: Under "Income Schedule," select "Schedule Capital Gains" and choose the type of equity asset you sold.
  • Capital Gains Types:
    • Short-Term Capital Gains (STCG): Taxed at 20% under Section 111A. Click "Add Details" and enter the total sale amount and cost of acquisition for short-term assets in the financial year.
    • Long-Term Capital Gains (LTCG): Taxed at 12.5% under Section 112A, but exempt up to Rs. 1.25 Lakhs. Provide details for each stock sold, including ISIN number, selling price, purchase price, and transaction dates. Click "Add" for each scrip (stock).
• Review and Download: Once you've filled in all the necessary schedules, confirm them, review Part B TTI, and preview your return. Download the ITR for further processing.
• Verification: On the declaration tab, provide the required details and proceed to validation. Finally, verify your ITR filing electronically or by sending a signed ITR-V hard copy to the Income Tax Department within 120 days.

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How to file ITR-2 (capital gains) with Tax2win?

Step 1. Visit the Tax2win page, login/signup to the account and click on File ITR Now

Step 2. Now select ‘capital gains’ as your source of income and click on continue.

Step 3. Now, scroll to the ‘Capital Gains Income ’tab. Enter your capital gains/losses details by adding via tab “ Equity, Mutual Funds, Intraday, F&O and More”.

Step 4. Now upload your capital gain report by selecting, your broker from the list, for example if it is “Groww”, select Groww.

Step 5. From the pop-up window, click on browse files and upload the P&L statement of the chosen broker. (You can download the P& L statement from the requested broker website).

Alternatively, you can also upload P&L using the Tax2win template.

Step 6. Click on the Tax2win Template.

Step 7. Click the 'Download Tax2win Template' button in the first step to download the template. Fill in your capital gain investment details as instructed in the template. Then, upload the completed template by clicking the 'Browse Files' button. Tax2win will read your transactions and calculate your capital gains details within minutes.

Or, you can “Add Data Manually” for the cases where , Tax P&L report not available , broker isn’t listed or not supported.

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