ITR-2 Form: Complete Filing Guide — Who Should File & Key Schedules

Last updated: 3 June 2026

ITR-2 is for individuals and HUFs who have income from capital gains, more than one house property, foreign assets or foreign income, salary above ₹50 lakh, or agricultural income above ₹5,000. It cannot be used for business or professional income (use ITR-3 or ITR-4). Key schedules include Schedule CG (capital gains), Schedule HP (house property), Schedule FSI (foreign source income), Schedule FA (foreign assets), and Schedule AL (assets & liabilities for income >₹50L). Due date: 31 July for non-audit cases. E-verify within 30 days of filing.

ITR-2

The go-to form for individuals with capital gains from equity, property, or mutual funds — even a single ₹100 capital gain disqualifies you from ITR-1. NRIs, foreign asset holders, and high-income salaried individuals (income >₹50L) must also use ITR-2.

Who Should File ITR-2?

Situation	Use ITR-2?	Notes
Salary + one house property + interest (total ≤₹50L, no capital gains)	No — Use ITR-1	ITR-1 is sufficient if no capital gains at all
Any capital gains (equity shares, MF, property, gold)	Yes	Even ₹1 capital gain requires ITR-2
More than one house property	Yes	Multiple rental or self-occupied properties
Total income above ₹50 lakh	Yes	Schedule AL (assets & liabilities) mandatory
Foreign assets or foreign bank accounts	Yes	Schedule FA must be filled
Foreign source income (dividends, interest)	Yes	Schedule FSI and TR for DTAA relief
NRI or RNOR status	Yes	NRIs cannot use ITR-1
Agricultural income >₹5,000	Yes	Even if agricultural income itself is exempt
Business or professional income	No — Use ITR-3/4	ITR-2 cannot accommodate business income
Director in a company / holds unlisted shares	Yes	Even if no other disqualifying income

ITR-1 vs ITR-2 — Comparison

Parameter	ITR-1 (Sahaj)	ITR-2
Applicable to	Resident individuals only	Individuals & HUF (residents + NRI/RNOR)
Income ceiling	Up to ₹50 lakh total income	No ceiling
Capital gains	Not allowed at all	All capital gains (Schedule CG)
House properties	One only	Multiple properties (Schedule HP)
Foreign income / assets	Not allowed	Schedules FSI, FA, TR
NRI / RNOR	Not applicable	Applicable
Agricultural income	Up to ₹5,000	Any amount
Director / unlisted shares	Not allowed	Allowed
Schedule AL	Not required	Mandatory if income >₹50L

Key Schedules in ITR-2

Schedule	Full Name	What to Report
Schedule S	Salary Income	Gross salary, allowances, perquisites, deductions u/s 16
Schedule HP	House Property	Rental income, municipal tax, 30% standard deduction, home loan interest
Schedule CG	Capital Gains	LTCG and STCG on equity, property, debt MF, gold, bonds; cost of acquisition, improvement, indexed cost
Schedule OS	Other Sources	Interest income, dividends, winnings
Schedule FSI	Foreign Source Income	Income from foreign sources country-wise
Schedule TR	Tax Relief	Double taxation relief (DTAA) claimed country-wise
Schedule FA	Foreign Assets	Foreign bank accounts, equity, immovable property, trusts abroad
Schedule AL	Assets & Liabilities	Mandatory if total income >₹50L — report assets and liabilities at year end
Schedule VI-A	Deductions	80C, 80D, 80G, 80E and all Chapter VI-A deductions

Verification deadline: After filing ITR-2 online, e-verify the return within 30 days (reduced from 120 days from August 2022). E-verify via Aadhaar OTP, net banking, or DSC. If not e-verified within 30 days, the return is treated as not filed and late filing penalties may apply.

ITR-2 Filing Due Dates FY 2024-25

Taxpayer Category	Due Date
Individuals & HUF (no audit, no transfer pricing)	31 July 2025
Tax audit cases (turnover above threshold)	31 October 2025
Transfer pricing report (Section 92E)	30 November 2025
Belated return (with late fee)	31 December 2025
Updated return ITR-U (with additional tax)	Within 2 years of end of AY

Frequently Asked Questions

What is the difference between ITR-2 and ITR-1 — when should I use ITR-2?

ITR-1 (Sahaj) is for resident individuals with income from salary, one house property, and other sources (interest etc.) with total income up to ₹50 lakh — provided there are no capital gains. ITR-2 must be used when: you have capital gains from any asset (even ₹100 from selling equity shares), you have more than one house property, your total income exceeds ₹50 lakh, you have foreign assets or foreign source income, you have agricultural income exceeding ₹5,000, or you are an NRI/RNOR. You cannot use ITR-1 if you have capital gains — even small amounts from equity MF redemptions require ITR-2.

Which ITR form should I use for capital gains?

For individuals and HUFs with capital gains (LTCG or STCG) from equity shares, mutual funds, property, or any other capital asset, ITR-2 is the correct form. The Schedule CG (Capital Gains) in ITR-2 captures all gains — equity, debt MF, property, gold, bonds etc. If you also have business or professional income in addition to capital gains, use ITR-3. If you have only presumptive income (44AD/44ADA) without capital gains, use ITR-4. ITR-1 cannot be used for any capital gains whatsoever.

Can an NRI file ITR-2?

Yes. ITR-2 is the standard form for Non-Resident Indians (NRIs) and Resident but Not Ordinarily Resident (RNOR) taxpayers. NRIs report Indian-source income — salary for services rendered in India, rental income, capital gains on Indian assets, interest on NRO accounts — in ITR-2. Schedule FSI (Foreign Source Income) and Schedule TR (Tax Relief) are used for foreign income and double taxation relief (DTAA). NRIs must also report foreign assets in Schedule FA if applicable. NRIs are not eligible for ITR-1.

What is Schedule FA in ITR-2 for foreign assets?

Schedule FA (Foreign Assets) in ITR-2 is mandatory for Resident Indians who hold foreign assets at any time during the accounting year — including foreign bank accounts, foreign equity/debt investments, interests in foreign entities, immovable property abroad, foreign trusts, and any other foreign capital assets. Schedule FA must be filled even if the foreign asset generates no income. Failure to disclose foreign assets attracts severe penalties under the Black Money Act — ₹10 lakh per asset plus potential prosecution. NRIs and RNORs do not need to fill Schedule FA for assets held as non-residents.

How do I file ITR-2 for salary income plus ESOP (stock options)?

ESOPs (Employee Stock Options) trigger two tax events: (1) At exercise — the difference between Fair Market Value (FMV) and exercise price is treated as perquisite and taxed as salary. This appears in Form 16 and is included in Schedule S (Salary). (2) At sale — the gain from FMV at exercise to sale price is a capital gain (STCG or LTCG depending on holding period) reported in Schedule CG. Listed company ESOPs sold on exchange are subject to STT; STCG at 20%, LTCG at 12.5% above ₹1.25 lakh. Unlisted company ESOPs: STCG as per slab, LTCG at 12.5% (24 months holding). ITR-2 handles both components correctly.

Last updated: 3 June 2026. This page is for informational purposes only and does not constitute professional tax or legal advice. Consult a qualified CA for your specific situation. All provisions relate to FY 2024-25 (AY 2025-26) under the Income-tax Act 1961 as amended by Finance Act 2024.

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