ITR-2 is for individuals and Hindu Undivided Families (HUFs) who have income from salary, house property, capital gains, and other sources — but NOT from business or profession. If you sold shares, mutual funds, or property in FY 2025-26, you almost certainly need ITR-2.
Who Should File ITR-2?
- Salaried individuals with capital gains from shares, equity mutual funds, or property
- Individuals with income from more than one house property (or one let-out property)
- NRIs with Indian income (salary, rent, capital gains from Indian assets)
- Individuals with foreign income or foreign assets (including foreign bank accounts)
- Directors in a company or shareholders in unlisted companies
- Individuals with agricultural income exceeding ₹5,000
Who Cannot File ITR-2?
- Business owners, freelancers, and professionals with business income (use ITR-3 or ITR-4)
- Those opting for presumptive taxation under Section 44AD/44ADA (use ITR-4)
- Partners in firms (use ITR-3)
Capital Gains in ITR-2: What to Fill
| Asset Type | Short-Term (STCG) | Long-Term (LTCG) | Tax Rate |
|---|---|---|---|
| Listed equity shares / equity MF | ≤ 12 months | > 12 months | STCG 20% | LTCG 12.5% above ₹1.25L |
| Debt mutual funds (from Apr 2023) | All holding periods | — | As per slab (no indexation) |
| Immovable property | ≤ 24 months | > 24 months | STCG as per slab | LTCG 12.5% without indexation (residents: 20% with indexation option for property bought before 23 Jul 2024) |
| Physical gold / jewellery | ≤ 24 months | > 24 months | STCG as per slab | LTCG 12.5% without indexation |
Note: From Union Budget 2024: LTCG exemption limit on equity raised to ₹1.25 lakh (from ₹1 lakh). STCG rate on equity increased to 20% (from 15%) for transactions after 23rd July 2024. Apply the correct rates based on when the sale happened.
Documents Needed for ITR-2
- Form 16 Part A and Part B (from employer)
- Capital gain statement from broker (Zerodha, Groww, Kite — downloadable from broker portal)
- Mutual fund capital gain statement from CAMS/KFintech or AMC directly
- Property sale deed + cost of acquisition details (for property capital gains)
- Form 26AS and AIS (from income tax portal — cross-check all incomes)
- Interest certificates from bank (savings account, FD, RD interest)
- Rental income agreement and receipts (if let-out house property)
- Foreign income/asset details (foreign account statements, dividend certificates)
How to File ITR-2 Online
- Login to incometax.gov.in using PAN and OTP/password
- Go to 'File Income Tax Return' → AY 2026-27 → Online mode
- Select ITR-2 form
- Fill Schedule S (salary), Schedule HP (house property), Schedule CG (capital gains), Schedule OS (other sources)
- Verify pre-filled data against Form 26AS — correct any mismatches
- Compute tax, claim deductions (under old regime) if applicable
- Submit and e-verify via Aadhaar OTP, net banking, Demat account, or bank account
