How to Fill ITR 2 Capital Gains in FY 2024-25 [Complete Step-by-Step Guide]

If you’ve sold property, stocks, or mutual funds this financial year, you’re likely required to report capital gains. This means you need to learn exactly how to fill ITR 2 capital gains correctly. Failing to report your capital gains accurately in your tax return may lead to penalties or scrutiny by the Income Tax Department.

This comprehensive guide explains how to fill ITR 2 capital gains in simple terms, helping you navigate the ITR-2 form, especially the crucial Schedule CG section. Whether it’s short-term gains from stock trading or long-term profits from mutual funds or real estate, we’ll guide you through every detail of your capital gains tax return filing—along with expert advice on managing asset sale ITR cases.

Who Should File ITR-2?

The ITR-2 form is designed specifically for individuals and Hindu Undivided Families (HUFs) who have sources of income that do not fall under business or profession but do include capital gains. Here’s who needs to understand how to fill ITR 2 capital gains:

• Individuals and HUFs with capital gains from the sale of stocks, mutual funds, or real estate.
  
• Those owning more than one house property.
  
• Individuals with foreign assets or income.
  
• Investors involved in cryptocurrency, international equity, or foreign mutual funds.
  
• Salaried professionals who’ve also sold capital assets during the financial year.
  

If any of these apply to you, you must file your capital gains tax return using the ITR-2 form. Most importantly, if your return involves any kind of asset sale ITR, such as immovable property or unlisted shares, ITR-2 is the appropriate form.

Documents Required Before You Begin

Before diving into how to fill ITR 2 capital gains, make sure you’ve collected all the documents necessary for smooth reporting:

• PAN and Aadhaar Card
  
• Form 16 (if you’re a salaried employee)
  
• Form 26AS (for TDS and TCS details)– learn more about What is TDS
  
• AIS and TIS statements from the Income Tax portal
  
• Capital gains statements from your broker or registrar (like CAMS or KFintech)
  
• Purchase and sale deeds in case of real estate
  
• ISIN and scrip-wise reports for listed shares and mutual funds
  
• Proof of expenses incurred during acquisition/improvement
  
• Bank statements reflecting sale proceeds or capital inflow

These documents are essential not only for accurate filing of your capital gains but also to avoid mismatch issues in income tax return filing online.

Step-by-Step Guide: How to Fill ITR 2 Capital Gains

Learning how to fill ITR 2 capital gains properly ensures your return is accurate, compliant, and complete. Follow these steps carefully:

Step 1: Log in to the Income Tax e-Filing Portal

• Visit www.incometax.gov.in
  
• Log in using your PAN, password, and OTP
  
• Go to “e-File” > “File Income Tax Return”
  
• Select Assessment Year 2025–26
  
• Choose the Online mode and ITR-2 form
  

Step 2: Choose Your Filing Details

• Select your filing status: Individual or HUF
  
• Choose “Taxable income is more than basic exemption limit” as your reason for filing
  

Step 3: Navigate to the Income Schedule

• In the return form, scroll to the “Income Schedule” section
  
• Click on “Schedule Capital Gains” (ITR 2 Schedule CG)
  

Step 4: Fill in ITR 2 Schedule CG Accurately

This is the core of how to fill ITR 2 capital gains. Here, you must:

• Declare Short-Term Capital Gains (STCG) under Section 111A for listed shares held < 12 months
  
• Declare Long-Term Capital Gains (LTCG) under Section 112A for listed shares/mutual funds held > 1 year
  
• Include sale of immovable property, foreign securities, unlisted shares, and even cryptocurrencies
  
• Choose between scrip-wise or consolidated entries for equity transactions
  

Step 5: Report Capital Gains from Different Assets

When it comes to reporting gains from asset sale ITR, make sure to:

• Mention Date of Acquisition and Date of Sale
  
• State Cost of Acquisition (COA)
  
• Provide Fair Market Value as on Jan 31, 2018 (for grandfathering LTCG)
  
• Mention Full Sale Consideration
  
• Calculate Indexed Cost of Acquisition (for property and other eligible assets)
  
• Mention Expenses on Sale (brokerage, stamp duty, legal fees)
  

Step 6: Review and Validate the Return

• Carefully check values in Part B – Total Taxable Income (TTI)
  
• Cross-verify exemptions and deductions under Sections 54, 54EC, or 54F
  
• Click “Preview Return” and validate all inputs
  

Step 7: E-Verify Your Return

• You can e-verify using:
  
  • Aadhaar OTP
    
  • Net banking
    
  • Digital Signature Certificate (DSC)
    
• Or, send a signed physical copy of ITR-V to CPC Bengaluru
  

This process finalizes your capital gains tax return. Remember, filing without verification is considered incomplete.

Common Mistakes to Avoid in ITR 2 Capital Gains Filing

Filing how to fill ITR 2 capital gains improperly can lead to scrutiny or notice. Watch out for:

• Selecting ITR-1 or ITR-3 instead of ITR-2 when capital gains are involved
  
• Ignoring the LTCG exemption limit of ₹1 lakh
  
• Missing ISIN or FMV data while reporting equity LTCG
  
• Not including sale proceeds of foreign shares or crypto assets
  
• Entering incorrect dates or cost details in asset sale ITR schedules
  
• Not claiming applicable exemptions under Sections 54, 54EC, or 54F

Tips to Maximize Your Capital Gains Tax Benefits

If you want to lower your tax outgo while correctly understanding how to fill ITR 2 capital gains, keep these smart tax-saving tips in mind:

• Claim exemption under Section 54 if you reinvest LTCG from property into another property
  
• Invest in 54EC bonds to save tax on real estate capital gains
  
• Carry forward losses from previous years to offset current capital gains
  
• Consider tax loss harvesting before the financial year ends
  
• File on time to avoid interest and penalty
• Learn the GST registration process to ensure your business compliance
  

Expert help is highly recommended for complex asset sale ITR filings.

How Finodha Can Help You File ITR 2 Capital Gains Easily

Still unsure about how to fill ITR 2 capital gains properly? Let Finodha’s experts do it for you.

Why Finodha?

• Affordable ITR plans
  
• Personalized support for STCG, LTCG, and all capital assets
  
• Expert calculation of capital gains tax return
  
• Instant DSC (Digital Signature Certificate) issuance
  
• Tax assistance for salaried, investors, and NRIs
  

Services We Offer:

• ITR-2 filing for all types of capital gains
  
• Customized filing support for shares, mutual funds, and property
  
• Expert handling of asset sale ITR complexities
  
• Advisory for exemptions and deductions
  
• Support for foreign income and digital assets
  

Ready to file your capital gains return stress-free?

Conclusion

Filing your income tax return with capital gains doesn’t have to be overwhelming. With this detailed guide on how to fill ITR 2 capital gains, you can now report all capital asset transactions confidently and correctly. Whether your income stems from equity trading, mutual funds, or property sales, using the correct form and schedule ensures smooth processing and minimal tax risk.

Still unsure or have complex asset sale ITR entries? Let Finodha’s experts handle it all—from documentation to filing—so you can stay stress-free.

Frequently Asked Questions (FAQs)

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More Information: https://taxinformation.cbic.gov.in/

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