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AY 2021-22 File ITR-2 Form for Income from Capital Gains

by | May 30, 2024 | Income Tax | 0 comments

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Important Keyword: Capital Gains, HUF, Income Heads, ITR Form, ITR-2.

What is ITR-2 Form?

ITR-2 Form serves as the Income Tax Return form for individuals and HUFs who lack any business or professional income. This means individuals with salary, house property, capital gains, and other sources of income can file ITR-2.

Important Income Tax Documents:

  • Form 16: For salary income
  • Form 26AS: Tax Credit Statement
  • Form 12BB: Statement showing particulars of perquisites, other fringe benefits or amenities, and profits in lieu of salary with value thereof
  • Form 10BA: Declaration to claim deduction under section 80GG
  • Form 15G/15H: Declaration to avoid tax deduction at source on interest income

Mandatory ITR Filing:

Until FY 2018-19 (AY 2019-20), filing Income Tax Return wasn’t compulsory if the total income was below the basic exemption limit. However, Budget 2019 introduced a new provision under Section 139(1), mandating ITR filing if a taxpayer engages in high-value transactions. These transactions include:

  • Depositing over INR 1 crore in a current account
  • Incurring foreign travel expenses exceeding INR 2 lakhs
  • Incurring electricity expenses exceeding INR 1 lakh

ITR-2 Form Breakdown:

The ITR-2 Form comprises 25 sections, including Part A General, Schedule Salary, Schedule House Property, Schedule Capital Gains, and others. These sections must be filled before reviewing, paying tax, and submitting the return.

Who Can File ITR-2?

ITR-2 can be filed by individuals or HUFs whose total income includes:

  • Salary/pension income
  • Income from multiple house properties
  • Capital gains income
  • Income from other sources (including lottery winnings and income from racehorses)
  • Agriculture income exceeding INR 5,000
  • Foreign assets/foreign income

Additionally, it can be used when another person’s income is clubbed with the taxpayer’s income falling under any of the above categories.

Who Cannot File ITR-2?

Individuals with total income including business or professional income cannot file ITR-2. Likewise, taxpayers earning income from a partnership firm must file ITR-3 or ITR-4 to declare such income.

File ITR-2 Online using Income Tax Website

  1. General Information
    Fill in the general information which consists of your contact, personal information, filing status & bank details. 

    www.incometax.gov.in - General Information for ITR 2 Filing
  2. Schedule Salary, House Property & Other Sources
    In Schedule Salary, you need to review, enter, edit details of your income from salary or pension, exempt allowances and deductions u/s 16.
    Under schedule house property, you need to review, enter & edit details relating to house property (self-occupied, let out, or deemed let out). The details include co-owner details, tenant details, rent, interest, pass through income etc.
    and, under schedule other sources, you need to review, enter and edit details of all your income from other sources, including (but not limited to) income charged at special rates, deductions u/s 57 and income involving race horses.

    www.incometax.gov.in - Schedule Salary
  3. Schedule Capital Gains
    Capital Gains arising from sale or transfer of different types of capital assets have been segregated. In a case where capital gains arises from sale or transfer of more than one capital asset, which are of same type, please make a consolidated computation of capital gains in respect of all such capital assets of same type. But in case of transfer of land / building, it is mandatory to enter the computation towards each land / building. In Schedule Capital Gains, you need to enter details of your short term and long term capital gains or Losses for all types of capital assets owned.
  4. Schedule 112A & Schedule 115AD(i)(iii) Proviso
    Under Schedule 112A, you need to review, enter and edit details about sale of equity shares of a company, an equity-oriented fund, or a unit of a business trust on which STT is paid.
    Schedule 115AD (1)(iii) proviso involves entering the same details as for Schedule 112A but is applicable to non-residents

    www.incometax.gov.in - 112A & 115AD(i)(iii)
  5. Schedule Current Year’s Loss Adjustment (CYLA)
    In Schedule Current Year’s Loss Adjustment (CYLA), you will be able to view details of income after set-off of current year losses. The unabsorbed losses allowed to be carried forward out of this are taken to Schedule CFL for carry forward to future years.

    www.incometax.gov.in - Schedule CYLA
  6. Schedule Brought Forward Loss Adjustment (BFLA)
    You can view the details of income after set-off of brought forward losses of earlier years.

    www.incometax.gov.in - Schedule BFLA
  7. Schedule Carry Forward Loss
    You can view the details of losses to be carried forward to future years.

    www.incometax.gov.in - Schedule CFL
  8. Schedule VI-A 
    you need to add and verify any deductions you need to claim under Section 80 – Parts B, C, CA, and D of the Income Tax Act

    www.incometax.gov.in - Schedule VI-A
  9. Schedule AMT
    You need to confirm the computation of Alternate Minimum Tax payable u/s 115JC.

    www.incometax.gov.in - Schedule AMT
  10. Schedule AMTC
    You need to add details of tax credits u/s 115JD.

    www.incometax.gov.in - Schedule AMTC
  11. Schedule SPI
    You need to add the income of specified persons (e.g. spouse, minor child) that is includable or required to be clubbed with your income as per Section 64.

    www.incometax.gov.in - Schedule SPI
  12. Schedule EI
    You need to provide your details of exempt income i.e., income not to be included in total income or not chargeable to tax. The income types included in this schedule include interest, dividend, agricultural income, any other exempt income, income not chargeable to tax through DTAA and pass through income which is not chargeable to tax.
  13. Schedule SI
    You will be able to view the income that is chargeable to tax at special rates. The amount under various income types are taken from the amounts provided in the relevant Schedules i.e., Schedule OS, Schedule BFLA.
  14. Schedule PTI
    You need to provide details of pass through income received from business trust or investment fund as referred to in section 115UA or 115UB.

    www.incometax.gov.in - Schedule PTI
  15. Schedule Foreign Source Income (FSI)
    You need to report the details of income, which is accruing or arising from any source outside India. This schedule is available for residents only.

    www.incometax.gov.in - Schedule FSI
  16. Schedule TR
    You need to provide a summary of tax relief which is being claimed in India for taxes paid outside India in respect of each country. This schedule captures a summary of detailed information furnished in Schedule FSI.

    www.incometax.gov.in - Schedule TR
  17. Schedule FA
    You need to provide details of foreign asset or income from any source outside India. This schedule need not be filled up if you are Not Ordinarily Resident or a Non-Resident.

    www.incometax.gov.in - Schedule FA
  18. Schedule 5A & Schedule AL
    In Schedule 5A, you need to provide the information necessary for apportionment of income between husband and wife if you are governed by the system of community of property under the Portuguese Civil Code 1860.
    If your total income exceeds ₹50 lakh, it is mandatory to disclose the details of movable and immovable assets in Schedule AL along with liabilities incurred in relation to such assets. If you are a non-resident or resident but not ordinarily resident, only the details of assets located in India are to be mentioned.

    www.incometax.gov.in - Schedule AL
  19. Tax Paid
    Under Part B, verify all the auto populated rows from the details that you had entered in the schedules. Verify the tax paid details from the previous financial year.
  20. Login to efiling portal
    Login to the income tax efiling portal, i.e, the IT Portal 2.0

  21. File Income Tax Return
    Click on eFile > Income Tax Returns > File Income Tax Return

    www.incometaxgov.in - File Income Tax Return
  22. Assessment Year and Mode
    Select the appropriate assessment year and select the online mode and click on proceed.
  23. ITR Form
    Select the appropriate ITR Form, in this case, ITR 2.

    www.incometax.gov.in - Select ITR 2
  24. Select the checkboxes
    Next, select the checkboxes applicable to your situation.

    www.incometax.gov.in - Checkboxes for ITR 2
  25. Review and File ITR
    Finally, review all the details that you had entered previously and pay the tax dues (if any) and submit the return. Once you submit the return, proceed to everify it to complete the process.

Structure of ITR-2

Part/ ScheduleHeadingFields
PART A- GENERALPersonal InformationName, Address, Date of Birth, PAN, contact details.
Filing StatusEmployer Category, Tax status, Residential status, Return filed under the section.
PART B-TIComputation of total incomeTotal Income from all income sources, Losses of the current year set off, Gross Total Income, Deductions under Chapter VI-A.
PART B-TTIComputation of tax liability on total incomeThe Bank Account details, Verification, and TRP details (if any) are to be provided. 
Schedule ITDetails of Advance Tax and Self Assessment Tax PaymentsBSR code, Date of Deposit, Chalan number, Tax Paid
Schedule TDSTDS1: Details of Tax Deducted at Source from SALARYTAN of Employer, Employer Name, Tax Deducted, etc.
Schedule TDSTDS2: Details of Tax Deducted at sources from Income other than Salary (As per FORM 16A) & Details of tax deducted at source on sale of immovable property u/s 194IA (Form 26QB)TAN, Name of Deductor, Year of Deduction, Tax deducted, etc.
Schedule TCSDetails of tax collected at sourceTAN of the collector, Name of Collector, Tax Collected, etc.
Schedule SDetails of Income from SalaryName and PAN of the Employer, Address of the Employer, Salary, Perquisites, Allowance, etc.
Schedule HPDetails of Income from House PropertyDetails of House Property, Name and PAN of the Co-owners and Tenants, Details of Rent Income, Interest payable on Borrowed Capital, etc.
Schedule CGCapital GainsDetails about the Short term and Long term Capital gains, Sales consideration, Cost of Acquisition, Deductions under Section 54,54B,54EC,54F,54GB.
Schedule OSIncome from Other SourcesA dividend, Interest, Rental income from machinery, Winnings from lotteries, Crossword puzzles, Races, Games.
Schedule CYLADetails of income after set­off of current year lossesDetails of current year losses and its Inter Headset off
Schedule BFLADetails of income after Set off of Brought Forward Losses of earlier yearsDetails of brought forward losses set off against current year’s income, total brought forward losses set off.
Schedule CFLDetails of Losses to be carried forward to the future yearsTotal of earlier year losses, current year losses, Total of carried forward to future years.
Schedule VI-ADeductions under Chapter VI-ADeductions under section 80C, 80CCC, 80CCG, 80D, 80DDB, 80E, 80G, 80TTA.
80GDetails of DonationsName of Donee, Address, City or District, State Code, PAN of Donee, Amount.
Schedule SPIThe income of specified persons (spouse, minor child, etc.) included in the income of the assessee (income of the minor child, in excess of Rs. 1500 per child, to be included)Name and PAN of Person, Relationship, Nature of Income, Amount.
Schedule SIIncome chargeable to income tax at special ratesDescription of Special Rate Income, Special Rate, Income, Taxable Income after adjusting min. chargeable to tax, Tax thereon.
Schedule EIDetails of Exempt Income (Income not to be included in Total Income)Interest income, Dividend, Agricultural Income.
Schedule PTIDetails of Income from Business Trust or Investment Fund Details of Income earned from Business Trust or Investment Fund as per section 115UA, 115UB. 
Schedule FSIDetails of Income from outside India and tax reliefA country, Head of income, Income from outside India, Tax paid outside India, Tax payable in India, Relevant article of DTAA if relief is claimed u/s 90 or 90A
Schedule TRSummary of tax relief claimed for taxes paid outside IndiaDetails of tax relief claimed
Schedule 5AInformation regarding the appointment of income between spouses governed by Portuguese Civil CodeName and PAN of a spouse, Income received under different heads, Amount appointed in the hands of the spouse, TDS details.
Schedule FADetails of Foreign Assets and Income from any source outside IndiaDetails of foreign bank accounts, financial interest in any entities, Immovable Properties, Other Capital Assets.
Schedule ALDetails of Assets and LiabilitiesDetails of an immovable asset, Details of a movable asset, Interest held in the asset of a firm or AOP.

Here’s a detailed checklist of documents you’ll need for a smooth income tax filing process:

Essential Documents:

  1. PAN (Permanent Account Number)
  2. Aadhaar Card
  3. Bank Account Details
  4. TDS Certificates
  5. Challan of Taxes Paid
  6. Details of Original Return (if filing a revised return)
  7. Details of Notice (if filing in response to a notice)

Documents Based on Type of Income:

For Salary Income:

  • Form 16/Salary Slips received from your employer
  • Pension Statement/Passbook

For House/Property Income:

  • Co-owner details (if applicable)
  • Address of the property
  • Interest certificates/Repayment certificate from a bank (for property loan)
  • Rent Agreement (for let-out property)

For Other Sources:

  • Savings/Current Account Statements/Passbook
  • Interest Certificates for deposits/bonds/NSC
  • PPF Account Statement/Passbook
  • Dividend warrants/counterfoils
  • Rent Agreement (for let-out machinery)
  • Details about receipts of any other income

For Capital Gains:

  • Sales & Purchase Deeds, stamp duty valuation (for land/building)
  • Details of improvement costs
  • Contract notes/stock ledgers/trading statement (for securities)
  • Cost of purchase, cost of improvement & sales receipts (for other capital assets)
  • Details of expenses incurred on the transfer of capital assets
  • Details of investments to claim exemptions
  • Capital gains deposit account details (if any)

Section 80 Deductions Documents:

  • PPF Account Statement/Passbook
  • Fixed Deposit Certificates/Statements
  • ELSS/ULIP/NSC Investment Details
  • Life Insurance Premium Receipts
  • Medical Insurance Premium Receipts
  • House/Property Loan Interest Certificate/Repayment Statement
  • Education Loan Interest Certificate/Repayment Statement
  • Tuition Fees Receipts
  • Donation Receipts

Sample ITR-2 Form for AY 2021-22

AY 2021-22 ITR 2 - Income from Capital Gains

Here are the major changes in ITR 2 for Assessment Years 2021-22 and 2020-21:

For AY 2021-22:

  1. Option to Choose Tax Regime: Taxpayers can opt between the old and new tax regimes based on their preference.
  2. Quarterly Breakdown for Dividend Income: Dividend income must be reported with quarterly breakdowns for accurate calculation of interest under Section 234C.

For AY 2020-21:

  1. Mandatory Filing for RNORs and Non-Resident Individuals: RNORs and non-resident individuals must file ITR 2 even if their income is below INR 50 lakh.
  2. Disclosure of High-Value Transactions: Taxpayers must disclose cash deposits exceeding INR 1 crore in current accounts, expenditure above INR 2 lakh on foreign travel, or expenditure above INR 1 lakh on electricity.
  3. Resident Individuals Owning Multiple Properties: Residents with more than one house property must file ITR 2.
  4. Ineligibility for Business and Profession Income: Taxpayers earning income from business and profession cannot file ITR 2.
  5. Disclosure of Company Details: Directors in a company or those holding unlisted equity investments must disclose the type of company.
  6. Separate Section for LTCG Calculation: A dedicated section, Section 112A, is introduced for calculating long-term capital gains on the sale of equity shares or units of a business trust liable to STT.

Read More: ITR 2A form for Multiple House Property Income [Discontinued]

Web Stories: ITR 2A form for Multiple House Property Income [Discontinued]

Official Income Tax Return filing website: https://incometaxindia.gov.in/


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