For Individuals & HUFs with Capital Gains, NRI Status & Complex Income
ITR-2 is for individuals and HUFs who do not have income from business or profession but have capital gains from shares, property or crypto; foreign income or foreign assets; income from multiple house properties; NRI/RNOR status; or total income exceeding ₹50 Lakhs. File accurately for AY 2026-27 (FY 2025-26) — due date: 31st July 2026.
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ITR-2 is the income tax return form prescribed by the Central Board of Direct Taxes (CBDT) for individuals and Hindu Undivided Families (HUFs) who have income from all sources covered in ITR-1 — plus additional, more complex income streams such as capital gains, foreign income, NRI status, or multiple house properties.
Unlike ITR-1 (which covers only the simplest salaried profiles), ITR-2 is significantly more detailed. It consists of multiple schedules including Schedule CG (capital gains), Schedule OS (other sources), Schedule FA (foreign assets), Schedule AL (assets and liabilities for income above ₹50L), and more. Accuracy in all schedules is critical — errors can trigger notices under Sections 143(1), 143(2) or 148.
For AY 2026-27 (FY 2025-26), the CBDT has revised capital gains taxation rules significantly following the Finance Act 2024. The holding period and tax rate structure for capital gains has been revamped — making expert-assisted ITR-2 filing more important than ever.
The Finance Act 2024 introduced major amendments to capital gains taxation effective FY 2024-25 onwards, applicable for ITR-2 filing for AY 2026-27. Short-term capital gains on equity are now taxed at 20% (up from 15%), and long-term capital gains tax on equity/MF is 12.5% (up from 10%), with the LTCG exemption threshold remaining at ₹1.25 Lakhs. Indexation benefit has been removed for most assets.
Filing the wrong ITR form makes the return defective under Section 139(9), triggering notice and requiring re-filing under penalty. Always verify your applicable form.
For capital gains from shares and mutual funds, always download the Capital Gains Statement from your broker (Zerodha, Groww, HDFC Securities, etc.) and cross-check with the AIS on the income tax portal. Discrepancies between broker reports and AIS are a top trigger for scrutiny notices in ITR-2 cases. We reconcile these for every client before filing.
ITR-2 is for individuals and HUFs with complex income. Check whether you are required to file ITR-2 for AY 2026-27 (FY 2025-26).
The Finance Act 2024 revised capital gains taxation significantly. Here's a complete guide to how each type of capital gain is taxed and reported in ITR-2 for FY 2025-26.
Gains from selling listed equity shares or equity-oriented mutual funds held for 12 months or less are classified as Short-Term Capital Gains under Section 111A. STT (Securities Transaction Tax) must be paid on the transaction. Losses can be set off against STCG or LTCG, and balance carried forward for 8 assessment years.
Gains from equity shares and equity MF held for more than 12 months are LTCG under Section 112A. The first ₹1.25 Lakh of gains each financial year is exempt. Beyond that, tax applies at 12.5% without indexation benefit. Grandfathering applies for shares acquired before 31 Jan 2018 — purchase cost is taken as higher of actual cost or FMV on 31 Jan 2018.
Sale of immovable property held for more than 24 months qualifies as LTCG, taxed at 12.5% without indexation (Finance Act 2024 removed indexation benefit). Held 24 months or less is STCG, taxed at applicable income slab rates. TDS at 1% under Section 194IA is deducted by buyer. Section 54 / 54F exemptions available on reinvestment in new residential property.
Income from transfer of Virtual Digital Assets (VDAs) — crypto, NFTs, digital tokens — is taxed at a flat 30% under Section 115BBH, with no deduction allowed except cost of acquisition. Losses from VDAs cannot be set off against any other income head. 1% TDS is deducted by crypto exchanges under Section 194S — match with Form 26AS.
| Asset Type | Holding Period (LT) | STCG Rate | LTCG Rate | Indexation | Key Exemption |
|---|---|---|---|---|---|
| Listed Equity Shares / Equity MF | > 12 months | 20% | 12.5% | No | ₹1.25L / year (Sec 112A) |
| Debt Mutual Funds (post Apr 2023) | N/A | Slab rates | Slab rates | No | None |
| Immovable Property | > 24 months | Slab rates | 12.5% | No | Sec 54 / 54F (reinvestment) |
| Unlisted Shares | > 24 months | Slab rates | 12.5% | No | None |
| Bonds & Debentures | > 12 months | Slab rates | 12.5% | No | Sec 54EC (NHAI/REC bonds) |
| Gold / Physical Assets | > 24 months | Slab rates | 12.5% | No | None |
| Crypto / VDA | N/A | 30% | 30% | No | None — no set-off |
ITR-2 consists of multiple mandatory and conditional schedules. Each schedule captures a specific income type or disclosure — missing any can make your return defective.
Report rental income from let-out properties, self-occupied property (loss on home loan interest), and deemed let-out property. Claim deduction of 30% on net annual value and home loan interest under Section 24(b).
The most detailed schedule. Report short-term and long-term gains separately for each asset class — equity, property, debt MF, gold, crypto. Includes set-off, carry forward, and computation of net taxable capital gains.
Report dividends, interest on FDs/savings/bonds, winning from lottery, online gaming, royalty, family pension, and income from other sources not covered under any specific head.
Mandatory for residents holding foreign bank accounts, foreign equities, foreign immovable property, ESOPs of foreign companies, or with signing authority over overseas accounts. Non-disclosure attracts penalty under Black Money Act.
Required if total income exceeds ₹50 Lakhs. Disclose immovable property, movable assets (vehicles, jewellery), financial assets (bank, shares, deposits), loans and liabilities as on 31st March 2026.
Granular reporting of each listed equity/MF transaction — scrip-wise ISIN, acquisition date, sale date, fair market value as on 31 Jan 2018 (for grandfathering), and gains computation. Must match broker capital gains statement exactly.
ITR-2 requires more documents than ITR-1. Keep these ready to ensure a smooth, accurate and timely filing process.
Mandatory for identity verification, e-filing login and Aadhaar-OTP based e-verification
TDS certificate from employer — Part A (TDS summary) and Part B (salary breakdown & deductions)
Tax credit statement, Annual Information Statement and Taxpayer Information Summary from IT portal
Broker-generated P&L or capital gains report — equity, MF, bonds. Download from Zerodha/Groww/CDSL etc.
Registered sale deed, purchase cost records, stamp duty values, home loan interest certificate
Foreign bank account statements, overseas equity holdings, ESOP grant & exercise details, TRC for NRIs
All operative savings, NRE, NRO, FCNR accounts — passbook, IFSC, account numbers, interest certificates
80C investments, 80D health insurance, home loan statements, HRA rent receipts, donation receipts (80G)
DIN number, details of companies where director, unlisted share purchase/sale records and valuations
For ITR-2 filers — especially those with capital losses — timely filing is not just a compliance requirement; it's a financial strategy.
Capital losses (short-term or long-term) can be carried forward for up to 8 assessment years to set off against future capital gains — but only if the return is filed on time. Belated returns forfeit this crucial benefit.
Late filing after 31 July 2026 attracts a mandatory penalty under Section 234F — ₹1,000 for income below ₹5L and ₹5,000 for income above ₹5L — plus interest at 1% per month on unpaid tax under Section 234A.
On-time filers receive refunds for excess TDS deducted (on salary, FD, rent, property sales) and advance tax paid faster. ITR-2 cases with capital gains often have significant refund claims — filing on time accelerates credit.
Banks for home and personal loans, embassies for US, UK and Canada visas, and financial institutions all require 2–3 years of filed ITR. ITR-2 with higher income and assets significantly boosts loan eligibility and CIBIL profile.
End-to-end, CA-expert ITR-2 filing — from capital gains computation to NRI tax planning and Schedule FA disclosure.
We calculate short-term and long-term capital gains for every asset class — equity, MF, property, bonds, crypto — reconciled with AIS and broker statements.
Specialized ITR-2 filing for NRIs and residents with foreign assets — DTAA benefit application, Schedule FA disclosure, FEMA compliance check.
Detailed Schedule HP preparation covering rental income, municipal tax deductions, home loan interest, and set-off of house property losses.
We verify all TDS entries in Form 26AS and AIS — flagging mismatches between reported income and actual receipts before filing to prevent notices.
We compute your tax liability under both Old and New Tax Regimes and recommend the optimal regime based on your specific income profile and deductions.
ITR-2 filers with capital gains and foreign assets face higher scrutiny risk. We handle all post-filing communication — 143(1) intimations, defective return notices, and revised filing.
From capital gains statements to final acknowledgement — fully online, expert-managed, and hassle-free. No office visit required.
Fill the callback form or call us directly. A dedicated ITR-2 expert connects with you within 2 hours to understand your income profile — salary, gains, NRI status, foreign assets.
⏱ Within 2 hoursShare Form 16, capital gains statements, property deeds, foreign asset details and investment proofs via WhatsApp or email. Fully paperless and confidential.
⏱ Same dayOur CA team computes all capital gains, fills all schedules, reconciles AIS, selects optimal tax regime, and shares a complete income & tax summary for your approval.
⏱ 48–72 hoursReturn is e-filed on the Income Tax portal and e-verified via Aadhaar OTP. You receive the official ITR-V acknowledgement directly in your email inbox.
⏱ As promisedEverything you need to know about ITR-2 filing for AY 2026-27. Can't find your answer? Talk to our expert directly.
Ask Our Expert →The due date for filing ITR-2 for Assessment Year 2026-27 (Financial Year 2025-26) is 31st July 2026 for individuals not subject to tax audit. Filing after this date attracts a late fee of ₹1,000 (income ≤₹5L) or ₹5,000 (income >₹5L) under Section 234F, plus interest under Section 234A at 1% per month on unpaid tax dues. Critically, belated returns cannot carry forward capital losses.
You must file ITR-2 instead of ITR-1 if you have: capital gains (shares, MF, property, crypto); more than one house property; total income above ₹50 Lakhs; foreign income or foreign assets; NRI or RNOR status; or you are a company director or hold unlisted equity shares. Even a single equity share sale with gain/loss triggers ITR-2 requirement — ITR-1 is not valid in that case.
Yes. NRIs (Non-Resident Indians) and RNORs with any India-sourced income — salary for work performed in India, rental income, capital gains from Indian assets, dividends, interest — must file ITR-2. NRIs can claim DTAA (Double Tax Avoidance Agreement) benefits to avoid double taxation. A Tax Residency Certificate (TRC) from the country of residence is required to claim DTAA relief. NRIs must also report NRE account details though NRE interest is exempt for NRIs.
Long-Term Capital Gains (LTCG) on equity-oriented mutual funds (held >12 months) are taxed under Section 112A at 12.5% for FY 2025-26. The first ₹1.25 Lakh of LTCG per year remains exempt — gains above this threshold are taxed at 12.5% without indexation. Losses can be set off against other LTCG and the balance can be carried forward for 8 years. These must be reported in Schedule 112A of ITR-2 with ISIN-level details.
Non-disclosure of foreign assets in Schedule FA of ITR-2 is a serious violation under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. Penalties can reach ₹10 Lakh per violation, and prosecution is possible in serious cases. Residents (not NRIs) holding foreign bank accounts, overseas property, foreign equities, ESOPs of foreign companies, or signing authority over foreign accounts must mandatorily disclose these, regardless of whether the assets generate income in India.
Set-off rules in ITR-2 are specific: Short-Term Capital Loss (STCL) can be set off against both STCG and LTCG. Long-Term Capital Loss (LTCL) can only be set off against LTCG — not against STCG. Crypto/VDA losses cannot be set off against any other income. Unabsorbed capital losses can be carried forward for 8 assessment years, but only if the return is filed on or before the due date (31 July 2026). House property losses can be set off against any head of income, but only up to ₹2 Lakh per year.
Sale of immovable property in FY 2025-26 is reported in Schedule CG of ITR-2. If held for more than 24 months, it qualifies as LTCG taxed at 12.5% without indexation (indexation benefit removed by Finance Act 2024). If held 24 months or less, gains are STCG taxed at applicable income slab rates. The buyer deducts TDS at 1% under Section 194IA (if property value ≥₹50L) — match this with Form 26AS. Exemption under Section 54 (new residential property) or Section 54EC (NHAI/REC bonds — investment within 6 months) can reduce LTCG liability.
Capital gains, NRI income, foreign assets, multiple properties — let our CA experts handle the complexity. Accurate ITR-2 filing for AY 2026-27 — due date: 31st July 2026.