Every individual needs to file their taxes in the specified IT return form. Taxpayers need to file ITR for capital gain by submitting ITR form 2 to the Income Tax Department. However, if your total income for a financial year includes income generated from business or profession, you will be required to file ITR-3 as the income tax return for capital gains. If your income source is salary, sale of foreign assets or property, etc., you are eligible to file ITR-2. Read on to know how to file the capital gain ITR form.
You can log in to the official portal of the income tax department and file your ITR for capital gains by following these steps:
Step 1: Select Income Tax Returns from ‘e-File’, and then, click on ‘Income Tax Returns’ and select ‘File Income Tax Returns’.
Step 2: You need to select the assessment year, for instance, 2022-2023 and select ‘Online’ as the mode of filing.
Step 3: Next, select the form type (ITR-2) after choosing the status and select the reason for ITR filing
Step 4: On the next page, you can find 5 types of schedules. Click on ‘General’ and select ‘Income Schedule’.
Step 5: Click on ‘Schedule Capital Gains’ and select the appropriate capital asset type from the list.
Step 6: If you want to file for STCG, click on ‘Add Details’ and enter the consolidated amount you have obtained from selling short-term assets and the Cost of Acquisition in a given financial year. However, for long-term capital gains, you need to enter details like purchase price, ISIN, transaction dates, selling price, etc., in Schedule 112A and click on 'Add'.
Step 7: After confirming the required schedules based on LTCG and STCG, you need to review Part B TTI.
Step 8: Click on ‘Preview Return’.
Step 9: Download the ITR and navigate to the ‘Declaration’ part.
Step 10: Enter the required details and click on ‘Proceed to Validation’.
Step 11: Once it is validated, you need to verify the filed ITR within 30 days. You can verify it online or mail a printout of the signed ITR-V (Acknowledgment form) to the IT department’s Bangalore branch.
You need to fulfil the following eligibility criteria to file the ITR-2 form:
Note: If you are earning from a business, any profession, partnership firm, etc., you are not eligible to file an ITR-2 form.
Check out the essential documents required for filing ITR-2 form:
Documents required for filing capital gain ITR form:
So, now you know how to file long-term capital gain in ITR-2, its eligibility criteria, the documents required, and much more. You can follow the steps mentioned above to file the ITR for both long-term and short-term capital gains without any hassles. Ensure entering the correct data in the required fields to avoid mistakes.