How to File ITR-2 Online in 2025 for Capital Gains

How to File ITR-2 Online in 2025 for Capital Gains

ITR-2 is the income tax return form used by individuals and Hindu Undivided Families (HUFs) who have income from capital gains, more than one house property, or foreign income. If you sold shares, mutual funds, or property during FY 2024-25, this guide explains how to file ITR-2 correctly.

Who Should File ITR-2?

You must file ITR-2 if you are an individual or HUF and your income includes:

• Salary or pension along with capital gains from shares, mutual funds, or property
• Income from more than one house property
• Foreign income or foreign assets
• Agricultural income exceeding Rs 5,000
• Income as a director in a company
• Holding unlisted equity shares during the financial year
• Total income exceeding Rs 50 lakh

ITR-2 does not apply if you have income from business or profession – use ITR-3 or ITR-4 for those cases.

Documents Required for ITR-2

1. Form 16 – For salary and TDS details
2. Capital gains statements – From your broker or mutual fund house
3. Form 26AS and AIS – Tax credit and financial transaction summary
4. Sale and purchase deeds – For property transactions
5. Bank statements – For interest income and dividend income
6. Foreign income documents – For NRIs or those with overseas earnings

Step-by-Step Process to File ITR-2

Step 1: Log in and Select ITR-2

Log in to incometax.gov.in with your PAN credentials. Navigate to e-File > Income Tax Returns > File Income Tax Return. Select AY 2025-26 and choose ITR-2.

Step 2: Import Prefilled Data

Download the prefilled JSON to auto-populate your salary, TDS, and financial transaction data. Cross-verify with your Form 16 and broker statements.

Step 3: Fill General Information

Enter your personal details, filing status, residential status, and whether you are opting for the new tax regime under Section 115BAC. This choice is critical and must be made carefully.

Step 4: Report Salary Income

Under Schedule Salary, enter gross salary, allowances, and deductions under Section 16 including standard deduction of Rs 75,000 (new regime) or Rs 50,000 (old regime).

Step 5: Report House Property Income

For each property, enter the annual value, municipal taxes paid, and interest on home loan under Section 24(b). If you have a self-occupied property, the annual value is nil but you can still claim interest deduction up to Rs 2 lakh under the old regime.

Step 6: Report Capital Gains

This is the key section of ITR-2. You need to report:

Enter each transaction or upload your capital gains report in the prescribed format. For property sales, include indexation details if applicable.

Step 7: Enter Other Income

Report interest from savings accounts, fixed deposits, dividends, and any other income under Schedule OS.

Step 8: Claim Deductions

Under Schedule VI-A, enter deductions under Sections 80C, 80D, 80E, 80G, and others. Remember, most deductions under Chapter VI-A are not available under the new tax regime.

Step 9: Report Foreign Assets (if applicable)

Schedule FA requires details of foreign bank accounts, financial interests, immovable property, and other assets held outside India. Non-disclosure of foreign assets attracts penalties under the Black Money Act.

Step 10: Compute Tax and Pay Balance

The system calculates your total tax liability. Pay any outstanding tax through Challan 280 before filing. Enter the challan details in Schedule Tax Paid.

Step 11: Submit and e-Verify

Review the computation summary, submit the return, and e-verify using Aadhaar OTP or other available methods.

Tips for Filing ITR-2 Accurately

• Download capital gains statements well before the deadline – brokers provide these in the required format
• Reconcile your AIS with broker statements to ensure no transactions are missed
• If you sold property, ensure you have the sale deed, purchase deed, and improvement cost details
• Report exempt capital gains (like LTCG up to Rs 1.25 lakh on listed equity) even though they are tax-free

Simplify ITR-2 Filing with FileWithUs.ai

ITR-2 is more complex than ITR-1 due to capital gains schedules and additional disclosures. FileWithUs.ai streamlines the process by automatically importing your capital gains data, calculating tax on each asset class, and ensuring accurate reporting across all schedules. File your ITR-2 accurately and avoid notices from the tax department.