Income-Tax Return · AY 2026-27
ITR-2 Form —
Capital Gains, NRI & Foreign Assets
Who must file ITR-2 for AY 2026-27, how it differs from ITR-1 and ITR-3, the capital-gains schedule, the due date and the exact documents you need — reviewed for FY 2025-26.
Updated for AY 2026-27 CA Reviewed No business income
ITR-2No business income
31 Jul2026 due date
12.5%LTCG u/s 112A
Rs 5,000max late fee 234F
Quick Answer
File ITR-2 if you are a resident individual or HUF (or an NRI) with capital gains, more than the ITR-1 house-property limit, foreign income or foreign assets — and you have NO income from business or profession. ITR-2 carries Schedule CG (capital gains), Schedule HP (house property), Schedule FA (foreign assets) and Schedule FSI (foreign-source income). For AY 2026-27, ITR-1 now allows LTCG u/s 112A up to Rs 1.25 lakh on listed equity/MF; any STCG, larger LTCG, capital losses to carry forward, or foreign assets push you to ITR-2. Due date: 31 July 2026 (non-audit).
Filed by Individuals & HUF
Capital gains Yes — Schedule CG
Business income Not allowed
Due date 31 Jul 2026
Eligibility
Who Should — and Should Not — File ITR-2
File ITR-2 if you have
- Capital gains on shares, mutual funds, property or gold
- More than the ITR-1 limit of two house properties
- Foreign income, foreign assets or foreign bank accounts (Schedule FA)
- NRI or RNOR status with India-sourced income
- Total income above Rs 50 lakh, or agricultural income above Rs 5,000
- Capital losses to set off or carry forward to future years
Do NOT use ITR-2 if
- You have any business or profession income (use ITR-3)
- You opt for presumptive income u/s 44AD / 44ADA / 44AE (use ITR-4)
- You are a firm, LLP, company or trust (ITR-5 / 6 / 7)
- You qualify for ITR-1 — salary, up to two houses, LTCG 112A up to Rs 1.25L, income up to Rs 50L
What changed for AY 2026-27
ITR-1 (Sahaj) has been widened for AY 2026-27: a resident can now stay on ITR-1 with LTCG u/s 112A up to Rs 1.25 lakh (listed shares / equity mutual funds) and with up to two house properties, provided there are no capital losses to carry forward. Any short-term capital gain, LTCG above the exemption, or foreign assets still require ITR-2.
Form selector
Which ITR Form Should You Use?
| ITR Form | Use it for | Do NOT use if |
|---|---|---|
| ITR-1 (Sahaj) | Resident, income up to Rs 50L: salary/pension, up to 2 house properties, other sources, LTCG 112A up to Rs 1.25L | Any STCG, LTCG above Rs 1.25L, capital losses, NRI, foreign assets, business income |
| ITR-2 | Individuals/HUF with capital gains, NRI, foreign income/assets, income > Rs 50L — no business | You have business or profession income |
| ITR-3 | Individuals/HUF with business or profession income (with books) | Only presumptive income → use ITR-4 |
| ITR-4 (Sugam) | Presumptive income u/s 44AD / 44ADA / 44AE within limits | Capital gains, NRI, foreign assets, income > Rs 50L |
| ITR-5 / 6 / 7 | Firms & LLP / companies / trusts & political parties | You are an individual or HUF |
ITR-2 sits between ITR-1 and ITR-3: it handles every individual/HUF situation except business or profession income.
ITR-1
ITR-1 (Sahaj)
- Resident individual only
- Total income up to Rs 50 lakh
- Salary/pension, up to 2 house properties, other sources
- LTCG 112A up to Rs 1.25L allowed (AY 2026-27)
- No STCG, no capital loss carry-forward, no foreign assets
vs
ITR-2
ITR-2
- Individuals & HUFs, including NRIs
- No income ceiling
- Capital gains — Schedule CG (STCG & LTCG)
- Foreign income & assets — Schedule FA / FSI / TR
- More than two house properties allowed
- Only bar: no business/profession income
Not sure whether ITR-1 or ITR-2 applies to you?
Ask a TaxClue CA →Schedule CG
Reporting Capital Gains in ITR-2
Capital gains go in Schedule CG, with security-wise detail for listed equity in Schedule 112A. Pull your figures from the broker/AMC capital-gains statement and cross-check against the AIS/TIS on the portal. Rates below apply to FY 2025-26.
| Asset | Holding for long-term | Type & section | Tax rate |
|---|---|---|---|
| Listed equity shares / equity MF | 12 months | STCG u/s 111A | 20% |
| Listed equity shares / equity MF | 12 months | LTCG u/s 112A | 12.5% above Rs 1.25L |
| Immovable property / land | 24 months | LTCG u/s 112 | 12.5% (no indexation)* |
| Gold, unlisted shares, other assets | 24 months | LTCG u/s 112 | 12.5% |
| Debt mutual funds (bought after Apr 2023) | — | Always short-term | Slab rate |
| Short-term (non-111A assets) | — | STCG | Slab rate |
* For land/building acquired before 23 Jul 2024, resident individuals/HUF may opt for 12.5% without indexation OR 20% with indexation, whichever is lower. Use our capital-gains calculator to compare.
Inside the form
Key ITR-2 Schedules
| Schedule | What you report |
|---|---|
| Schedule HP | House-property income — rent, municipal tax, 30% standard deduction, home-loan interest u/s 24(b) |
| Schedule CG | Capital gains — STCG 111A, other STCG, LTCG 112A and LTCG 112 |
| Schedule 112A | Security-wise LTCG on listed equity / equity mutual funds |
| Schedule OS | Other sources — interest, dividends, winnings |
| Schedule VI-A | Chapter VI-A deductions — 80C, 80D, 80CCD, 80G (old regime) |
| Schedule FA / FSI / TR | Foreign assets, foreign-source income and DTAA / foreign-tax relief |
Schedule FA is mandatory even for residents
A resident and ordinarily resident (ROR) holding any foreign bank account, foreign shares (including ESOPs / RSUs of a foreign parent) or foreign property must disclose them in Schedule FA, regardless of income. Non-disclosure can attract penalty under the Black Money Act — this is the single most missed part of ITR-2.
Foreign ESOPs, RSUs or overseas assets to report?
Get Schedule FA done right →Deadlines
ITR-2 Due Dates & Late Fee (AY 2026-27)
| Return / event | Deadline | Provision |
|---|---|---|
| Original return (non-audit individuals/HUF) | 31 July 2026 | u/s 139(1) |
| Audit cases | 31 October 2026 | u/s 139(1) |
| Transfer-pricing cases | 30 November 2026 | u/s 139(1) |
| Belated & revised return | 31 December 2026 | u/s 139(4) / 139(5) |
| Updated return (ITR-U) | Within 48 months of AY end | u/s 139(8A) |
Budget 2025 extended the ITR-U window from 24 to 48 months. Verify current dates on the e-filing portal before filing.
Late fee & the carry-forward trap
Miss 31 July and a late fee u/s 234F applies — Rs 5,000 (reduced to Rs 1,000 if total income is up to Rs 5,00,000) — plus interest u/s 234A/B/C where tax is due. Worse, filing a belated return means you lose the right to carry forward capital losses to future years. If you have losses to set off, file on time.
Step by step
How to File ITR-2
Collect statementsForm 16, broker/AMC CG statement, 26AS, AIS/TIS
→
Pick the regimeOld vs new — old needs Schedule VI-A deductions
→
Fill schedulesHP, CG, 112A, OS, FA where applicable
→
Validate & submitReconcile with AIS, then e-file
→
E-verifyAadhaar OTP / net-banking — within 30 days
Checklist
Documents Needed for ITR-2
- PAN & Aadhaar (linked)
- Form 16 from each employer
- Form 16A / interest certificates for non-salary TDS
- Form 26AS and the AIS / TIS statement
- Broker & AMC capital-gains statements
- Property sale deed & purchase cost for LTCG
- Home-loan interest certificate (Schedule HP)
- Foreign bank / share / property details (Schedule FA)
- Deduction proofs — 80C, 80D, 80G (old regime)
- Bank account details for the refund
Want a CA to compute your gains and file ITR-2 accurately?
Get ITR-2 Filing Help →Government sourcesITR forms, schedules & due dates: incometax.gov.in · ITR-1 eligibility widened (LTCG 112A up to Rs 1.25L), AY 2026-27 notified forms · Capital-gains rates: Finance (No.2) Act 2024 — s.111A 20%, s.112A 12.5% · ITR-U 48-month window: Budget 2025, Section 139(8A)
People also ask
ITR-2 Form — Frequently Asked Questions
Who files ITR-2
Who should file ITR-2 for AY 2026-27?
File ITR-2 if you are an individual or HUF (resident or NRI) with capital gains on shares, mutual funds, property or gold; more than the ITR-1 limit of two house properties; foreign income or foreign assets; NRI/RNOR status with India-sourced income; total income above Rs 50 lakh; or agricultural income above Rs 5,000 — and you have no income from business or profession. If you have business or profession income you must use ITR-3 (or ITR-4 for presumptive income).
What is the difference between ITR-1 and ITR-2?
ITR-1 (Sahaj) is for resident individuals with total income up to Rs 50 lakh from salary/pension, up to two house properties and other sources, and — new for AY 2026-27 — LTCG under Section 112A up to Rs 1.25 lakh with no losses to carry forward. ITR-2 covers everything ITR-1 does plus any short-term capital gains, LTCG above the exemption, capital losses, NRI status, foreign income and foreign assets. The only thing ITR-2 cannot handle is business or profession income.
Can I file ITR-1 instead of ITR-2 if I have small capital gains?
For AY 2026-27 you can stay on ITR-1 only if your capital gains are LTCG under Section 112A (listed equity or equity mutual funds) up to Rs 1.25 lakh, you have no capital losses to carry forward, and you meet the other ITR-1 conditions. Any short-term capital gain under Section 111A, LTCG above Rs 1.25 lakh, gains on property, or foreign assets require ITR-2.
Is ITR-2 applicable for NRIs?
Yes. NRIs generally file ITR-2 for their India-sourced income — capital gains on Indian securities, rental income from Indian property and other income — as long as they have no business income in India. NRIs use Schedule FSI for foreign-source income taxable in India and Schedule TR for DTAA / foreign-tax relief. NRIs cannot use ITR-1.
Capital gains
How do I report capital gains in ITR-2?
Capital gains are reported in Schedule CG, with security-wise long-term gains on listed equity/mutual funds detailed in Schedule 112A. Enter short-term gains (STCG u/s 111A on equity, and other STCG) and long-term gains (LTCG u/s 112A on equity, LTCG u/s 112 on other assets). Use your broker and AMC capital-gains statements and reconcile with the pre-filled AIS/TIS data on the e-filing portal.
What are the capital-gains tax rates for FY 2025-26?
For listed equity and equity mutual funds, STCG under Section 111A is taxed at 20% and LTCG under Section 112A at 12.5% on gains above Rs 1.25 lakh a year. LTCG on other long-term assets (property, gold, unlisted shares) is taxed at 12.5% under Section 112. Short-term gains on non-111A assets and debt mutual funds bought after April 2023 are taxed at your slab rate.
Do I get indexation on property capital gains?
For land or building acquired before 23 July 2024, a resident individual or HUF may choose whichever is lower: 12.5% LTCG without indexation, or 20% with indexation. For assets acquired on or after that date, LTCG is 12.5% without indexation. This choice applies only to immovable property; you should compute both to pick the lower tax.
Can I carry forward capital losses in ITR-2?
Yes, but only if you file the return by the due date. Short-term capital losses can be set off against both short-term and long-term gains; long-term capital losses can be set off only against long-term gains. Unabsorbed losses carry forward for up to 8 assessment years. Filing a belated return forfeits the right to carry forward these losses.
Foreign assets
Do I have to fill Schedule FA if I hold foreign shares or ESOPs?
Yes. If you are a resident and ordinarily resident (ROR), you must disclose all foreign assets in Schedule FA — foreign bank accounts, foreign shares, ESOPs and RSUs of an overseas parent company, and foreign property — irrespective of income. Non-disclosure can attract penalties under the Black Money Act. NRIs and RNORs generally do not fill Schedule FA for assets acquired while non-resident.
What is the difference between Schedule FA, FSI and TR?
Schedule FA (Foreign Assets) discloses assets held outside India by a resident. Schedule FSI (Foreign Source Income) reports income earned abroad that is taxable in India. Schedule TR (Tax Relief) claims relief for taxes paid in a foreign country under a DTAA or Section 91. FA is a disclosure schedule; FSI and TR feed into your tax computation.
Due dates & fees
What is the due date for ITR-2 filing for AY 2026-27?
For non-audit individuals and HUFs, the ITR-2 due date is 31 July 2026. Audit cases are due 31 October 2026 and transfer-pricing cases 30 November 2026. A belated or revised return can be filed up to 31 December 2026, and an updated return (ITR-U) within 48 months of the end of the assessment year. Always confirm the current dates on the e-filing portal.
What is the late fee for filing ITR-2 after the due date?
A late-filing fee under Section 234F applies: Rs 5,000 if filed after 31 July, reduced to Rs 1,000 if total income is up to Rs 5,00,000. Interest under Sections 234A/B/C also applies on any unpaid tax. Beyond the fee, a belated return means you cannot carry forward capital losses, so timely filing matters if you have losses.
What is ITR-U and how long do I have to file it?
ITR-U is an updated return under Section 139(8A) that lets you file or correct a return with additional tax. Budget 2025 extended the window from 24 to 48 months from the end of the relevant assessment year. Additional tax is charged on a sliding scale (25% to 70% of tax and interest) depending on how late it is filed. ITR-U cannot be used to claim or increase a refund or report a loss.
Filing & documents
What documents do I need to file ITR-2?
You need PAN and Aadhaar, Form 16 from each employer, Form 16A and interest certificates for non-salary TDS, Form 26AS and the AIS/TIS, capital-gains statements from your broker and AMC, property purchase and sale details for LTCG, a home-loan interest certificate for house property, foreign asset details for Schedule FA, and proofs of deductions (80C, 80D, 80G) if you are on the old regime.
Do I need to e-verify ITR-2 after filing?
Yes. An ITR is not treated as filed until it is verified. E-verify within 30 days of submission using Aadhaar OTP, net-banking, a pre-validated bank/demat account or an EVC. If you do not e-verify or send the signed ITR-V within 30 days, the return becomes invalid, which can trigger a late fee and loss of the carry-forward benefit.
Can I switch between the old and new tax regime in ITR-2?
If you have no business income, you can choose between the old and new tax regime every year when you file. The new regime is the default with lower slab rates but almost no deductions; the old regime allows Chapter VI-A deductions (80C, 80D, etc.) in Schedule VI-A. Compare both before filing — the old regime usually wins only when your deductions are substantial.
Done-for-you
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