Sold shares this year? Own multiple properties? Work abroad? Then ITR-1 won't work for you. ITR 2 filing is designed for individuals and HUFs with income sources beyond basic salary and single property. It's the go-to form for anyone with capital gains, foreign assets, or income exceeding Rs. 50 lakhs.
This comprehensive guide covers everything about ITR 2 eligibility India requirements. You'll learn how to report ITR 2 capital gains correctly and understand which documents for ITR 2 you need. Whether you're an active investor or NRI, this article walks you through the complete filing process.
ITR 2 Eligibility India: Who Must File This Form?
Understanding ITR 2 eligibility India rules is the first step. The Income Tax Act specifies who must use this form.
| Must File ITR-2 If | Examples |
| Income from capital gains (any type) | Sold shares, mutual funds, property, gold |
| Total income exceeds Rs. 50 lakhs | High earners, requires Schedule AL |
| More than one house property | Multiple flats, inherited property |
| Foreign income or foreign assets | NRI accounts, foreign investments |
| Director in any company | Director in private or public company |
| Holding unlisted equity shares | Startup ESOPs, private company shares |
| NRI or RNOR residential status | Working abroad, returning residents |
ITR-2 is NOT For:
• Business or professional income (use ITR-3 or ITR-4)
• Partners in a firm (use ITR-3)
• Freelancers or consultants (use ITR-3 or ITR-4)
ITR 2 Capital Gains: Reporting Investment Income
Reporting ITR 2 capital gains correctly is crucial. Check CBDT guidelines for current tax rates.
| Asset | STCG Period | STCG Tax | LTCG Period | LTCG Tax |
| Listed Shares | ≤12 months | 20% | >12 months | 12.5%* |
| Equity MF | ≤12 months | 20% | >12 months | 12.5%* |
| Debt MF | Any period | Slab rates | N/A | N/A |
| Property | ≤24 months | Slab rates | >24 months | 12.5% |
| Gold/Jewellery | ≤24 months | Slab rates | >24 months | 12.5% |
*LTCG on listed equity/equity MF exempt up to Rs. 1.25 lakhs per year
Key Schedules in ITR-2:
Schedule CG: Main schedule for all capital gains computation
Schedule 112A: Scrip-wise LTCG for listed equity and equity MF
Schedule FA: Foreign assets and income disclosure
Schedule AL: Assets and liabilities (if income > Rs. 50 lakhs)
Documents for ITR 2: Complete Checklist
Gathering all documents for ITR 2 before starting ensures smooth filing.
| Document | Purpose / Details |
| PAN and Aadhaar | Identity verification, must be linked |
| Form 16 / 16A | TDS certificate for salary and other income |
| Form 26AS and AIS | Tax credit statement, verify all transactions |
| Broker/MF Statements | Capital gains statement, P&L report, contract notes |
| Property Documents | Purchase/sale deeds, stamp duty receipts |
| Bank Interest Certificates | Savings, FD, RD interest from all accounts |
| Investment Proofs | 80C, 80D, 80E, 80G receipts |
| Foreign Account Details | Bank statements for Schedule FA |
ITR 2 Filing: Step-by-Step Process
Complete ITR 2 filing online through the Income Tax e-Filing Portal.
Step 1: Login and Select ITR-2
Login with PAN. Navigate to e-File > Income Tax Returns > File Income Tax Return. Select assessment year and choose ITR-2.
Step 2: Download Pre-filled JSON
Download pre-filled JSON containing Form 26AS data. This auto-populates salary, TDS, and high-value transactions.
Step 3: Fill Personal Information
Verify pre-filled personal details, residential status, and bank accounts. Add all accounts held during the year.
Step 4: Enter Income Details
Fill salary from Form 16, house property income, other sources. Cross-verify with Form 26AS and AIS.
Step 5: Complete Schedule CG
Enter capital gains from each asset category. Fill Schedule 112A with scrip-wise details. Import broker statements if available.
Step 6: Claim Deductions
Enter Chapter VI-A deductions: 80C, 80D, 80E, 80G. Keep investment proofs ready.
Step 7: Submit and E-Verify
Review tax computation, pay outstanding tax, submit. E-verify within 30 days using Aadhaar OTP or net banking.
For professional assistance, consider Income Tax Return Filing services or expert CA-Assisted ITR support.
Conclusion: File ITR-2 Accurately
ITR 2 filing may seem complex, but systematic preparation makes it manageable. Understanding ITR 2 eligibility India rules ensures you use the correct form.
Report ITR 2 capital gains accurately using Schedule CG and 112A. Gather all documents for ITR 2 before you begin. Cross-verify with Form 26AS and AIS. File on time, e-verify promptly, and keep records for 6 years. Accurate reporting ensures smooth processing and peace of mind.
