ITR-2 explained: this guide covers what ITR-2 means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
ITR-2 is for individuals and HUFs who have income from capital gains, multiple house properties, foreign assets/income, or are directors in companies. It is more detailed than ITR-1 and requires careful attention to all schedules under ITA 2025.
Who Must File ITR-2?
- Any individual/HUF with capital gains (LTCG or STCG)
- Those with income from more than one house property
- Individuals with foreign assets (foreign bank accounts, foreign shares, foreign real estate)
- Non-Resident Indians (NRIs)
- Company directors
- Shareholders in unlisted companies
- Those with VDA/crypto income
- Income above Rs. 50 lakh (ITR-1 limit exceeded)
Key Schedules in ITR-2
| Schedule | Purpose |
|---|---|
| Schedule S | Salary income details |
| Schedule HP | Multiple house properties — each property separately |
| Schedule CG | Capital gains — LTCG (A), STCG (B), summary |
| Schedule OS | Other sources income |
| Schedule VDA | VDA/crypto transactions (each transaction) |
| Schedule FA | Foreign assets (bank accounts, shares, insurance, trusts) |
| Schedule FSI | Foreign source income and Foreign Tax Credit |
| Schedule TR | Tax relief claimed under DTAA |
| Schedule VI-A | Deductions under Chapter VI-A (old regime) |
Schedule CG — Capital Gains Reporting
- Enter each transaction: asset description, date of purchase, cost, sale consideration, expenses
- LTCG on equity: Use Schedule CG-A (special 12.5% rate, Rs. 1.25L exemption applied)
- STCG on equity: Schedule CG-B (20% special rate)
- Property/other assets: Appropriate section with applicable rate
Schedule FA — Foreign Assets Disclosure
ROR (Resident and Ordinarily Resident) taxpayers must disclose all foreign assets including:
- Foreign bank account balances (all accounts at any time during the year)
- Foreign equity and debt investments
- Foreign immovable property
- Foreign trusts where taxpayer is beneficiary/trustee
- Foreign life insurance
Failure to disclose foreign assets: Rs. 10 lakh penalty per violation under Black Money Act 2015.
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