Income Tax Return filing for FY 2024-25 has begun! File your ITR on time with expert help – Accurate, timely, and refund-ready! File Today
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. File your ITR
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.
Want to optimize your capital gains tax? Tax2win experts can help
The ITR-2 Form is divided into the following categories:
- Part A: General Information
- Part B-TI: Computation of Total Income
- Part B-TTI: Computation of tax liability on total income
- Schedule S: Details of income from salary
- Schedule HP: Details of income from house property
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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
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.
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Step 4: Under "Income Schedule," select "Schedule Capital Gains" and choose the type of equity asset you sold.
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Capital Gains Types:
- Short-Term Capital Gains (STCG): Taxed at 15% 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 10% under Section 112A, but exempt up to Rs. 1 lakh. 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 TT1, 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.
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.
Tired of complex tax filing on the Income Tax official Portal? File your ITR 2 with Tax2win's AI-powered portal for a hassle-free experience. Need help? Choose our expert tax assistance.
What are the Documents Required to File ITR 2 with Capital Gain?
When you file ITR 2 with capital gains, you need sets of general documents with additional documents for your capital gain. Here’s the list of documents you will need:
- Stamp Duty Documents: Sales and purchase deeds, improvement cost details, etc., if the capital gain is from land or buildings.
- Securities Transaction Documents: P&L statement from a broker, stock ledgers, contract notes, trading statements, etc., if the capital gain is from securities.
- Other Capital Assets Documents: Improvement cost, details of expenses incurred while transferring capital assets, cost of purchase, etc., if the capital gain is from other capital assets.
Also, you should have:
- Aadhaar Card
- PAN Card (Permanent Account Number)
- TDS Certificates
- Challan of Paid Taxes
- Bank Account Details
- Original Return Details (if filing a revised return)
- Notice-Related Details (if filing in response to any notice)
Make sure you have all the relevant documents ready before filing your ITR-2 Form to report capital gains.
The due date for filing ITR for FY 2024-25 is extended to 15 September 2025 and it is fast approaching. File your ITR before it's too late to avoid penalties. If you need assistance with e-filing, our Online CAs are experts in accurately filing ITRs to maximize your refund. Book an eCA now!
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