How To File ITR-2 For Income From Capital Gains FY 2023-24?

By Ektha Surana

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Updated on: Apr 1st, 2024

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9 min read

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 learn how to file the capital gain ITR form.  

Eligibility Criteria to File ITR-2 Form

If you fulfill the following criteria, then it is mandatory to file the ITR-2 form:

  • Any Indian individual or member of the HUF (Hindu Undivided Family).
  • Salaried or pensioned individual having income exceeding Rs 50 lakhs.
  • Individuals earning capital gains from the sale of shares, mutual funds, immovable property, rental income from multiple house properties, and other sources like horse racing, lottery winning, etc.
  • If you earn more than Rs 5,000 from agricultural income
  • If you have foreign assets or generate a foreign income.
  • If you are a director in any company (Foreign or domestic)
  • If you hold an unlisted equity share in any company (Foreign or domestic)

Note: If you are earning from a business, any profession, partnership firm, etc., you are not eligible to file an ITR-2 form.

Documents Required to File ITR-2 Form

Check out the essential documents required for filing the ITR-2 form:

  • Aadhaar Card
  • PAN (Permanent Account Number)
  • TDS certificates / Form 26AS
  • Form 16 if you are a salaried Individual
  • AIS/TIS statement from Income tax portal
  • Challan of the paid taxes
  • Bank account details
  • Original return details (if you are filing for a revised return)
  • Notice-related details (if you are filing in response to any notice)

Documents Required For Filing Capital Gain ITR Form:

  1. For Sale of Immovable Property :
    • Sales and purchase deeds, improvement cost details, transfer expenses showing the sale value, purchase value and any cost of improvement.
    • Full Address of the Property.
    • Details of the buyer, like PAN and Aadhaar.
    • Necessary supporting document if you claiming exemption u/s 54 or 54EC
  2. For Sale of Mutual funds or Equity shares:
    • For the Sale of Mutual funds, you can generate consolidated capital gain statements from CAMs and Kfintech.
    • For the Sale of Equity shares, you can check with your broker for a capital gain statement or Tax P&L
  3. For any other types of capital, you must have a document showing the sale consideration and the purchase cost details as required.

Steps to File Income Tax Returns for Capital Gains on the E-Filing Portal

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’.

e-filling itr

Step 2: You need to select the assessment year, for instance, 2024-2025, and select ‘Online’ as the mode of filing.

Step 3: Next, select the form type (ITR-2) after choosing the status.

income tax return filling

Select the reason for ITR filing and click on ‘continue’

reason for filing ITR 2

Step 4: On the next page, you can find 5 types of schedules. Click on ‘General’ and select ‘Income Schedule’. 

capital gain for ITR 2

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'.

schedule 112A

Step 7: After confirming the required schedules based on LTCG and STCG, you need to review Part B TTI.

Step 8: Once you have reviewed Part B TTI, If there is any additional tax liability, you will get a ‘Pay Now’ option through which you can make tax payments.

Step 9: Proceed with Click on ‘Preview Return’.

refund on itr 2 form

Step 10: Once reviewed, proceed with the validation 

validation in itr 2

Step 11: Once it is validated and filed, you need to verify the filed ITR within 30 days. You can verify it online using Aadhaar OTP, via net banking or mail a printout of the signed ITR-V (Acknowledgement form) to the IT department’s Bangalore branch.

validating the return

Final Word

So, now you know how to file long-term capital gain in ITR-2, 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. 

Frequently Asked Questions

What is the due date to file ITR-2 for AY 2024-25 (FY 2023-24)?

As per section 139(1) of the Income-tax Act, 31st July 2024 is the due date to file your income tax return.

Am I supposed to fill all the schedules in the ITR-2 Form?

No, You need to select only those schedules which are applicable to you based on your income pattern and asset holdings. Any mandatory details if you have not filled up the validation error will be reflected at the end.

I have multiple trades or transactions in equity shares and mutual funds. Am I supposed to enter every sale separately in my ITR form?

In case of short-term capital gain, you can enter the consolidated sale value, and purchase value, so you do need not to provide details on the transaction level.

In case of long- term capital gain, shares or MF purchased before 31st Jan 2018, details need to be provided in each of such capital gain in Schedule 112A. However,  for shares or MF purchased after 31st Jan 2018 and subsequently sold, consolidated value can be provided.

How can I import all my capital gains from MF and stocks to my ITR form ?

Currently, the  ITR form is provided in the Income tax portal, you will have to manually enter all the details. However, your can file your ITR with Cleartax, where you can import the capital gain statement from CAMs, Kfintech and top brokerage firms in India seamlessly, and your ITR form will be prepared automatically.  

what is the processing time for itr 2?

Processing of ITR-2 is done by CPC - Central Processing Center. This is an automated processing centre where the processing time can be anywhere between 1 month to 10 months, depending on a case-to-case basis. 

About the Author

Multitasking between pouring myself coffees and poring over the ever-changing tax laws. Here, I've authored 100+ blogs on income tax and simplified complex income tax topics like the intimidating crypto tax rules, old vs new tax regime debate, changes in debt funds taxation, budget analysis and more. Some combinations I like- tax and content, finance & startups, technology & psychology, fitness & neuroscience. Read more

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Quick Summary

Individuals must file specific IT return forms for capital gains, such as ITR-2 for taxpayers with income from business or profession, and ITR-3 for other sources. Eligibility criteria include income from salary or capital gains from various sources. Required documents include PAN, TDS certificates, and property details. Steps for filing on the e-filing portal include selecting form type and schedules for capital gains.

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