How do file ITR-2 Forms with Capital Gains?
Filing the Income Tax Return (ITR) can be a cumbersome and tedious task. You need to fill in information about hundreds of things, especially when you have more than one source of income.
In this article, we will see about the applicability of ITR-2, who can file ITR-2, how to fill long-term capital gain in ITR-2, and what information is required to be given in this return restricting our discussion to things related to Capital Gains.
What is ITR-2?
ITR-2 in India is nothing but a form in which you must fill in the information regarding the income you have earned in the financial year and the applicability of taxes on it.
The income tax department has notified seven different forms of ITR based on different categories. You must fill in the form which applies to you.
ITR-2 is a form where information regarding all the heads of income can be filled in except business or profession. If you want to file a capital gain ITR form and fulfill the conditions below, then you can file ITR-2, and this article will help you.
Who can file ITR-2?
The following are the conditions for being eligible to file ITR-2.
- An Individual or HUF only can file ITR-2.
- That individual or HUF can be Resident, Resident but Not Ordinarily Resident (RNOR), or Non-Resident (NR).
- The assessee can have income under all the heads of income except Profits and Gains from Business or Profession. Meaning, if you have any income from any business or profession, then you cannot file ITR-2.
- If anyone is eligible to file ITR-1, he cannot file ITR-2. ITR-1 is for resident individuals whose total income is composed of salary, income from one house property, and saving interest, and the total income does not exceed Rs. 50 lakhs.
So, if you fulfill all the conditions mentioned above, only you can file ITR-2.
After seeing who can file ITR-2, let us see what information is required to be given under this return.
Information to be given in ITR-2:
ITR-2 requires you to give information regarding various matters. The matters regarding information that are asked for can be classified as follows:
- General information
- Information regarding all the heads of income except Profits and Gains from Business or Profession
- Details regarding capital gains, if any.
- Information regarding set off and carry forward of losses.
- Information regarding deductions under various sections like 80C, 80D, 80G, etc.
- Information for various other matters like clubbing provisions, tax relief for taxes paid outside India, AMT, and b/f Credit, TDS, etc.
How to fill Long Term Capital Gain (LTCG) in ITR-2?
As mentioned earlier, we will restrict our discussion in this article to capital gains.
In ITR-2, you can fill all the details regarding your capital gains, whether short-term or long-term, whether earned from the sale of land or building or equity mutual funds, or any other capital asset.
The information regarding capital gains can be divided as follows:
All other capital gains include gains arising on the sale of capital assets like land or building, gold, debentures, etc., whether short-term or long-term.
Under short-term capital gains, you have to give the details of sale consideration received expenses incurred wholly and exclusively in connection with the transfer of the asset, cost of acquisition, and various other details depending on the type of asset.
How to fill long-term capital gain in ITR-2?
The answer to this question can be divided into three parts:
- LTCG on sale of land or building or both: For LTCG on the sale of land or building, you have to give property-wise details (in case you have sold multiple properties qualifying long-term capital asset) regarding consideration received, stamp duty value, indexed cost, details of the property, details of buyer and deductions, if you want to claim any.
- LTCG on sale of equity share or mutual fund unit on which STT is paid: For this type of LTCG, you have to give the details regarding the date of acquisition, name of the company or MF unit, ISIN, quantity, cost of acquisition, FMV as on 31st Jan. 2018 in case the security was acquired before that, sale price per unit, etc. Remember, these details are to be given security-wise. To give these details, you need to ask for a Capital Gain statement from your broker for the whole financial year.
- LTCG on all the other assets: For the remaining types of assets, the details are to be given depending on the type of asset. But in general, you need to give details regarding consideration received, cost of acquisition, indexation (if applicable), etc.
Modes of filing ITR-2:
ITR-2 can be filed online over the Income Tax Portal and offline by downloading the utility from the portal.
If you were searching for a capital gain ITR form and found yourself eligible for ITR-2, I hope this article gives you the relevant information and helps you fill out the return.
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