ITR-2 Filing Guide —
Capital Gains, Foreign Assets & More
Who must file ITR-2, the key schedules (CG, HP, FSI, FA, AL), how it differs from ITR-1, the FY 2025-26 due dates and how to file and e-verify correctly.
ITR-2 is for individuals and HUFs who do NOT have business or professional income but have capital gains (from shares, mutual funds, property, gold), more than one house property, foreign assets or foreign income, total income above Rs 50 lakh, agricultural income above Rs 5,000, or are an NRI/RNOR or a company director / holder of unlisted shares. Even a Rs 100 capital gain disqualifies you from ITR-1. If you also have business income use ITR-3; for presumptive income use ITR-4. Non-audit due date: 31 July 2026, e-verify within 30 days.
Two ITR-2 changes this year: the Schedule AL (Assets & Liabilities) reporting threshold has been raised from Rs 50 lakh to Rs 1 crore of total income, and the pre/post 23 July 2024 capital-gains date split has been removed — all FY 2025-26 gains use one revised set of rates. The Income-tax Act, 2025 also renumbers the return-filing sections, but "ITR-2" remains the form name on the portal.
Who Should File ITR-2 (and Who Should Not)
ITR-2 sits between the simple ITR-1 (Sahaj) and the business-income ITR-3. Use it whenever any single trigger below applies.
| Your situation | Use ITR-2? | Why |
|---|---|---|
| Salary + one house + interest, total ≤ Rs 50L, no capital gains | No · use ITR-1 | ITR-1 (Sahaj) is enough |
| Any capital gains — equity, MF, property, gold, bonds | Yes | Even Rs 100 gain blocks ITR-1 (Schedule CG) |
| More than one house property | Yes | ITR-1 allows only one house |
| Total income above Rs 50 lakh | Yes | Schedule AL now applies above Rs 1 crore |
| Foreign assets or foreign-source income | Yes | Schedule FA / FSI / TR (DTAA) |
| NRI or RNOR residential status | Yes | NRIs cannot use ITR-1 |
| Agricultural income above Rs 5,000 | Yes | Exceeds the ITR-1 exempt-income cap |
| Director in a company / holds unlisted shares | Yes | Disclosure required even with no other trigger |
| Any business or professional income | No · use ITR-3/4 | ITR-2 cannot carry business income |
A single trigger is enough — you do not need to satisfy all of them. Choose the return regime (old vs new) inside the form.
ITR-2 vs ITR-1 — Which One Is Yours?
The dividing line is simple: capital gains, a second house, foreign assets/income, income over Rs 50 lakh, or NRI status push you from ITR-1 to ITR-2.
ITR-1 (Sahaj) — simplest
- Resident individuals only
- Total income up to Rs 50 lakh
- Salary, one house, other sources
- LTCG u/s 112A up to Rs 1.25 lakh now allowed
- No foreign assets / foreign income
ITR-2 — capital gains & beyond
- Individuals & HUF (residents + NRI/RNOR)
- No income ceiling
- All capital gains via Schedule CG
- More than one house property
- Foreign assets (FA), foreign income (FSI/TR)
Even a single equity or mutual-fund redemption with a Rs 100 gain (or loss you want to carry forward) rules out ITR-1. Note that AY 2025-26 onward, ITR-1 does allow LTCG under Section 112A up to Rs 1.25 lakh with no carry-forward loss — but any other capital gain, STCG, or property/gold gain still needs ITR-2.
Not sure which ITR form fits your income mix?
Ask a TaxClue expert →Key Schedules in ITR-2
ITR-2 is organised into schedules — you only fill the ones relevant to your income. These are the ones that trip people up most.
| Schedule | Reports | Watch out for |
|---|---|---|
| Schedule S | Salary, allowances, perquisites, Sec 16 deductions | Match with Form 16 and AIS |
| Schedule HP | House property — rent, municipal tax, 30% standard deduction, loan interest | One row per property; let-out vs self-occupied |
| Schedule CG | Capital gains — equity, property, debt MF, gold, bonds | Cost, indexation, STCG/LTCG split; grandfathering for pre-2018 equity |
| Schedule OS | Other sources — interest, dividends, winnings | Reconcile bank / dividend TDS with 26AS |
| Schedule FSI & TR | Foreign-source income & DTAA relief | Needs Form 67 for foreign tax credit |
| Schedule FA | Foreign assets — accounts, shares, property, trusts | Mandatory for residents even if no income; Black Money Act penalties |
| Schedule AL | Assets & liabilities at year-end | Only if total income exceeds Rs 1 crore (raised this year) |
| Schedule VI-A | Deductions — 80C, 80D, 80G, 80E, etc. | Available in full only under the old regime |
Schedule FA disclosure failures attract penalties under the Black Money Act — do not skip foreign bank accounts or ESOPs held abroad.
A Resident and Ordinarily Resident who holds any foreign asset at any time in the year — a foreign bank account, foreign broker holdings, RSUs/ESOPs of an overseas parent, or property abroad — must report it in Schedule FA even if it earns nothing. Non-disclosure can trigger a Rs 10 lakh penalty per asset under the Black Money Act. NRIs/RNORs do not report assets held as non-residents.
ESOPs, RSUs or foreign holdings to report?
Get expert ITR-2 help →ITR-2 Due Dates, Late Fee & How to File
| Return / event | Deadline (AY 2026-27) | Notes |
|---|---|---|
| Original return — individuals/HUF (no audit) | 31 Jul 2026 | Most ITR-2 filers |
| Audit cases | 31 Oct 2026 | Where a tax audit applies |
| Transfer-pricing cases (Sec 92E) | 30 Nov 2026 | International / specified domestic transactions |
| Belated & revised return u/s 139(4)/(5) | 31 Dec 2026 | Late fee & interest apply to belated |
| Updated return (ITR-U) u/s 139(8A) | Within 48 months of AY end | Extended from 24 to 48 months by Budget 2025; extra tax |
Late fee u/s 234F: Rs 5,000, reduced to Rs 1,000 if total income does not exceed Rs 5,00,000. Interest u/s 234A/B/C may also apply.
Capital losses can only be carried forward if the return is filed by the 31 July 2026 due date. A belated return still lets you declare income, but you lose the right to carry the loss to future years. And you must e-verify within 30 days of filing (Aadhaar OTP, net-banking or DSC) or the return is treated as never filed.
- Form 16 from employer(s)
- Form 26AS + AIS / TIS download
- Capital-gains statement from broker / registrar
- Property sale deed & cost documents
- Interest & dividend certificates
- Foreign asset / bank statements (Schedule FA)
- Home-loan interest certificate
- Chapter VI-A deduction proofs (80C, 80D)
- Old vs new regime decided
- Bank account pre-validated for refund
Capital gains, NRI income or foreign assets? Let a CA file it right.
Get ITR-2 Filing Help →ITR-2 — Frequently Asked Questions
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