ITR-2 — for capital gains, multiple properties and foreign assets
ITR-2 is where most people land when they are pushed off ITR-1. It covers everything ITR-1 does, plus capital gains, more than one house property, foreign income and foreign assets, and income above ₹50 lakh. The one thing it does not cover is income from a business or profession — that requires ITR-3 or ITR-4.
At a glance
- Who it is for
- Individuals and HUFs
- Income ceiling
- None
- Capital gains
- Yes
- House properties
- Any number
- Foreign assets
- Yes — Schedule FA
- Business income
- Not permitted
- Our fee
- Quoted before we start
When you need ITR-2
You sold shares, mutual funds, gold or property. You own more than one house. Your total income exceeds ₹50 lakh. You are a director in a company or you held unlisted shares. You have foreign income, foreign assets, or signing authority over a foreign account. You are a non-resident with Indian income.
Any single one of these takes you to ITR-2. Several of them together still take you only to ITR-2 — the form is designed to absorb all of it.
The schedules that make it longer
Schedule CG asks for capital gains transaction by transaction, split by asset type and holding period. Schedule FA asks for foreign assets in detail, and it is unforgiving: it wants the account, the peak balance, the country and the acquisition date.
Schedule AL — assets and liabilities — is triggered where total income exceeds ₹50 lakh, and asks for a personal balance sheet. Many people meet ITR-2 for the first time and are surprised by how much of it is disclosure rather than computation.
Schedule FA is where non-disclosure becomes genuinely serious
Foreign assets have to be reported in Schedule FA even where they produce no income and even where you owe no tax on them. Employee stock in a foreign parent company, a bank account left open after working abroad, a foreign brokerage account — all reportable. Non-disclosure of foreign assets sits under the black money legislation rather than ordinary income tax provisions, and the consequences are of a completely different order to a normal filing error. If you have ever worked abroad or hold foreign shares, say so before the return is prepared, not after it is filed.
Questions we get asked
I only sold ₹10,000 of shares. Do I really need ITR-2?
Yes. There is no minimum below which capital gains can be ignored for form selection. The amount affects your tax, not which form you file.
I have capital gains and freelance income. ITR-2?
No — professional income takes you to ITR-3, or ITR-4 if you use presumptive taxation. ITR-2 cannot carry business or professional income.
Do I have to report a loss?
You should. A capital loss reported in a return filed by the original due date can be carried forward for eight years. Not reporting it, or filing late, loses it permanently.
Want us to handle it?
Flat ₹499 including GST for ITR-1 and ITR-4. Everything else quoted before any work starts, with no charge for the quote.