What is ITR-2?#
ITR-2 is the income tax return form for individuals and HUFs (Hindu Undivided Families) who have more complex financial situations than ITR-1 allows — specifically those with capital gains, multiple house properties, or foreign assets — but who do not have business or professional income.
Who Should File ITR-2?#
File ITR-2 if you are an individual/HUF and any of the following apply:
✅ Income from capital gains (equity, property, gold, bonds, F&O losses as capital) ✅ More than one house property ✅ Foreign income or foreign assets (including ESOP vesting for employees of foreign companies) ✅ Income > ₹50 lakh ✅ Director in a company ✅ Invested in unlisted shares ✅ Agricultural income > ₹5,000 ✅ Income from lottery or gambling ✅ You are an NRI or Non-Ordinary Resident (NOR)
Who Cannot File ITR-2?#
❌ Individuals/HUFs with business or professional income (use ITR-3) ❌ Partners in a firm (use ITR-3)
Key Schedules in ITR-2#
| Schedule | Purpose |
|---|---|
| Schedule CG | Capital gains (STCG, LTCG on all asset types) |
| Schedule AL | Assets and liabilities (if income > ₹50L) |
| Schedule FA | Foreign assets (bank accounts, properties, ESOPs) |
| Schedule FSI | Foreign source income |
| Schedule HP | Multiple house properties |
| Schedule S | Salary income |
| Schedule OS | Other source income |
| Schedule 80G | Charitable donation deductions |
Capital Gains in ITR-2#
ITR-2 is the go-to form for anyone who:
- Sold equity shares or mutual funds (LTCG u/s 112A, STCG u/s 111A)
- Sold property during the year
- Redeemed debt MFs, gold, or bonds
- Has F&O losses to carry forward
The form auto-imports capital gains data from your broker/AMC if they've filed correctly.
ITR-2 for NRIs#
NRIs filing ITR-2 must disclose:
- Indian-sourced income (rent, capital gains, FD interest)
- All foreign assets in Schedule FA
- Double Tax Avoidance Agreement (DTAA) relief claims in Schedule FSI
Filing ITR-2#
ITR-2 can only be filed online (no offline/paper option for most). The process is similar to ITR-1 but requires filling additional schedules. Consider using a CA for first-time filers with capital gains.