How to File ITR-2 — For Capital Gains, Two or More Houses, Foreign Assets, Directors, Unlisted Shares, Crypto Investors, NRIs and Income Above ₹50 Lakh: Schedule by Schedule (CG, VDA, HP, FA, FSI, TR, AL) With the Rates That Apply Since 23 July 2024
Video Explanation & Insights
ITR-2: how to file it and who must
5 videos on this topic
Who files ITR-2
ITR-2 is for individuals and HUFs who do not have income from business or profession but have anything ITR-1 cannot carry: capital gains beyond the small 112A exemption, income above ₹50 lakh, more than one house property, income from a foreign source or any foreign asset, a directorship, unlisted shares, crypto or other virtual digital assets held as investment, lottery or game winnings, agricultural income above ₹5,000, a brought-forward loss, or non-resident / RNOR status. A salaried employee with RSUs from a foreign parent, a retired couple with two flats, an NRI with Indian rent and a person who sold gold or a plot all file ITR-2. Partners of firms file ITR-3 (remuneration is business income); F&O and intraday traders file ITR-3.
The schedules that matter
| Schedule | What goes in | Source |
|---|---|---|
| Part A / General | Personal details, residential status (with the day-count questions), regime choice, directorship and unlisted-share disclosures | Passport/visa for NRIs; MCA data |
| Schedule S | Salary from each employer, exempt allowances, standard deduction | Form 16, Form 12BA |
| Schedule HP | Each house property separately: self-occupied (up to two), let-out (rent, municipal tax, 30% deduction, interest), deemed let-out | Rent agreements, loan certificates |
| Schedule CG | Short-term and long-term gains asset-wise; separate blocks for sales before and on/after 23 July 2024; 112A share-by-share with ISIN, cost, FMV on 31 Jan 2018 for grandfathered holdings | Broker capital-gains report, mutual-fund statements, sale deeds, demat statements |
| Schedule 112A / 115AD(1)(b)(iii) | Scrip-wise long-term equity/equity-fund sales | Broker report (CSV upload allowed in the utility) |
| Schedule VDA | Each crypto/NFT transfer: date of acquisition and transfer, cost, consideration, gain — taxed at 30% | Exchange statements |
| Schedule OS | Interest, dividends (with the quarterly breakup for advance tax), family pension, lottery, other income | AIS, bank certificates |
| Schedule CYLA / BFLA / CFL | Set-off of current-year losses, brought-forward losses, and losses carried forward | Last year's return |
| Schedule VI-A | Deductions (old regime) | Proofs |
| Schedule FSI / TR / FA | Foreign income and taxes paid, treaty relief (Form 67 for foreign tax credit), and every foreign asset — bank accounts, shares, ESOPs/RSUs, property, trusts — as at 31 December of the calendar year | Foreign statements |
| Schedule AL | Assets and liabilities at year end when income exceeds ₹50 lakh | Balance-sheet style listing |
| Schedule EI | Exempt income — agricultural income, partner's share of profit, gifts from relatives, PPF interest | — |
The rates and the 23 July 2024 split
| Asset | Holding for long-term | STCG | LTCG |
|---|---|---|---|
| Listed equity shares, equity mutual funds, units of business trusts (STT paid) | > 12 months | 20% (15% for sales before 23 Jul 2024) | 12.5% above ₹1.25 lakh a year (10% above ₹1 lakh before 23 Jul 2024); no indexation; grandfathered cost as on 31 Jan 2018 |
| Immovable property | > 24 months | Slab rate | 12.5% without indexation; for property acquired before 23 Jul 2024, a resident individual/HUF may instead pay 20% with indexation if that is lower |
| Unlisted shares | > 24 months | Slab rate | 12.5% without indexation |
| Gold, debt-oriented funds bought before 1 Apr 2023, bonds, other assets | > 24 months | Slab rate | 12.5% without indexation |
| Debt mutual funds bought on/after 1 Apr 2023, market-linked debentures | — | Slab rate always (deemed short-term) | — |
| Crypto / VDAs | — | 30% flat under 115BBH, no expenses other than cost, no set-off | — |
- •Exemptions: section 54 (residential house → new house, up to ₹10 crore), 54F (any long-term asset → house, if you own not more than one other house), 54EC (property/land → NHAI/REC/PFC/IRFC bonds within 6 months, ₹50 lakh cap), and the Capital Gains Account Scheme deposit before the return due date where the reinvestment is pending.
- •Losses: short-term losses set off against any capital gain; long-term losses only against long-term gains; unabsorbed losses carry forward eight years if the return is filed by the due date. Tax-loss harvesting — booking a loss before 31 March — is legitimate; so is the ₹1.25 lakh 'gain harvesting' the channel's short describes: sell and rebuy each year to use the exemption.
- •Advance tax on gains: pay in the instalment after the sale (no interest under 234C for the earlier instalments); dividends and gains are reported quarter-wise in ITR-2 for that reason.
Filing it
- 1Collect: Form 16, AIS/TIS and 26AS, broker capital-gains statements (P&L and holdings with ISIN and dates), mutual-fund capital-gains statements from CAMS/KFintech, sale and purchase deeds for property with stamp value, cost-of-improvement bills, crypto exchange tax reports, foreign brokerage and bank statements, Form 67 for foreign tax credit.
- 2Choose online mode (portal) for simpler cases or the offline JSON utility for many transactions; the utility accepts the 112A CSV template for scrip-wise data.
- 3Fill Part A, then Schedules S, HP, CG (each asset class in the correct pre/post-23 July block), VDA, OS, and the deductions or the new-regime choice; ITR-2 filers opt for the old regime in the return itself (no Form 10-IEA).
- 4Complete FA/FSI/TR for foreign holdings even if no income arose (RSUs, foreign savings accounts with zero balance still get reported); Schedule AL above ₹50 lakh; Schedule EI for exempt income.
- 5Check CYLA/BFLA/CFL, the tax computation, interest under 234A/B/C and the 87A rebate (available on slab income but not on 111A/112A gains in the new regime), pay self-assessment tax, submit and e-verify within 30 days.
ITR-2: questions we are asked
ITR-1 can now carry LTCG under 112A within the ₹1.25 lakh exemption with no tax; any short-term gain or gain beyond the exemption needs ITR-2.
Long-term; you may pay 12.5% on the gain without indexation or 20% on the indexed gain, whichever is lower (the option exists for assets acquired before 23 July 2024); section 54/54EC can shelter the gain.
Yes — as perquisite salary when vested (in Form 16), as foreign assets in Schedule FA every year while held, and as capital gains when sold, with foreign tax credit via Form 67 if the US taxed it.
No — section 115BBH allows no set-off, not even between two coins; each profitable transfer is taxed at 30% and losses lapse.
Schedule AL still applies for that year, and surcharge at 10% applies to the tax (15% above ₹1 crore), with the capped 15% surcharge on capital gains.
Yes — transaction-wise CG working from broker and registrar data, 54/54F/54EC planning, FA/FSI reporting and foreign tax credit.