1. ITR (Income Tax Return) 2 has been enabled on the portal w.e.f. 18.07.2025. The complexity of this return is widely discussed, primarily due to the mid-year change in Capital Gains Tax rates from 23 July 2024.
The article aims to simplify the ITR 2 filing process, enabling taxpayers who have income from Capital Gains or sold a property in FY 2024-25 to file their Income Tax return with clarity & confidence. Let’s walk through the ITR-2 filing using a real-time example.
2. Illustration: Mr. Anuj has income from Salary, Rent from house property, Capital Gain from the sale of shares and a residential property & interest from deposits. The details are as tabulated below:
| Sl. No. | Particulars | Amount (Rs.) |
| (a) | Income from Salary | 5,15,117 |
| (b) | Rental Income from House Property | 4,80,000 |
| (c) | Short-Term Capital Gain (STCG) from equity shares sold before 23.07. 2024 | 35,000 |
| (d) | Short-Term Capital Gain (STCG) from equity shares sold after 23.07. 2024 | 30,000 |
| (e) | Long-Term Capital Gain (STCG) from equity shares sold before 23.07. 2024 | 2,20,000 |
| (f) | Long-Term Capital Gain (STCG) from equity shares sold after 23.07. 2024 | 1,00,000 |
| (g) | Sale of residential property after 23rd July 2024: Date of sale 25.10.2024 | 40,00,000 |
| (h) | Cost of acquisition (without indexation): date of purchase 25.10.2012 | 15,00,000 |
| (i) | Cost of acquisition with indexation (15,00,000*363/200) | 27,22,500 |
| (j) | Income from Other Sources | 1,04,199 |
3. COMPUTATION SHEET: The first step is to prepare a computation sheet by reconciling the available data from Form 16, Form 26AS, AIS (Annual Information Statement), and the broker’s statement.
| Sl. | Particulars | Income | Deductions | Gross Income | Tax |
| (a) | (b) | (c)= a-b | (d) | ||
| 1 | Income from salary | 5,15,117 | 75,000 | 4,40,117 | |
| 2 | Rental Income | 4,80,000 | 1,44,000 | 3,36,000 | |
| 3 | Income from Other Sources | 1,04,199 | 0 | 1,04,199 | |
| 4 | Income Taxable @ Normal Rate (1+2+3) | 8,80,316 | |||
| 5 | STCG @15% | 35,000 | |||
| 6 | STCG @ 20% | 30,000 | |||
| 7 | LTCG @ 10% | 2,20,000 | |||
| 8 | LTCG@12.5% | 1,00,000 | |||
| 9a | Sale proceeds from Residential property | 40,00,000 | |||
| 9b | Cost of Acquisition (without indexation) | 15,00,000 | |||
| 9 | Income from Sale of House Property (9a-9b) | 25,00,000 * | |||
| 10. | Total Income @ special rate (5+6+7+8+9) | 28,85,000 | |||
| 11 | Total Income (4+10) | 37,65,316 | |||
* Note: Although the option to pay tax with indexation is available, the gross total income will be computed based on the amount without indexation. Any excess resulting from indexation will be ignored while determining the tax liability.
4. COMPUTATION OF TAX LIABILITY:
| A | TAX AT NORMAL RATE (NEW REGIME) | |||
| (a) | Up to Rs 3,00,000 | NIL | ||
| (b) | 3,00,000 – 7,00,000 | 5% | 20,000 | |
| (c) | Above 7,00,000 (8,80,316- 7,00,000 | 10% | 18,032 | |
| (d) | Total Tax at the Normal rate (a+b+c) | 38,032 | ||
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| B. | TAX AT SPECIAL RATE | |||
| (a) | LTCG @12.5% | 1,00,000 | ||
| (b) | LTCG @ 10% | 2,20,000 | ||
| (c) | Less Exemption of 1,25,000 | (1,00,000) | (25,000) | |
| (d) | Taxable Equity LTCG (a-c), (b-c) | NIL | 1,95,000 | |
| (e) | LTCG @10% | 19,500 | 19,500 | |
| (f) | STCG @ 15% on 35,000 | 5,250 | ||
| (g) | STCG @ 20% on 30,000 | 6,000 | ||
| (h) | Total Tax at Special rate (e+f+g) | 30,750 | ||
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| C. | TAX ON SALE OF HOUSE PROPERTY | |||
| (a) | Sale proceeds from Residential property | 40,00,000 | 40,00,000 | |
| (b) | Cost of Acquisition (without indexation) | 15,00,000 | ||
| (c) | Cost of Acquisition with indexation 15,00,000*363/200 | 27,22,500 | ||
| (d) | Capital Gain without indexation | 25,00,000 | ||
| (e) | Capital Gain with indexation | 12,77,500 | ||
| (f) | Capital Gain Tax @ 12.5% | 3,12,500 | ||
| (g) | Capital Gain with indexation @ 20% | 2,55,500 | 2,55,500 | |
Diff of (312500-255000) Rs 57000 will be ignored
| D | TOTAL TAX LIABILITY | |||
| (a) | Gross Total Tax Liability (A+B+C) | 3,24,282 | ||
| (b) | Surcharge @ 4% on 3,24,282 | 12,971 | ||
| (c) | Total Tax (a+b) | 3,37,253 |
5. Let us start filing: The path is Dashboard /e-file /Income Tax Return /Select Status/Filing Returns for A.Y. 2025-26 /ITR 2/Select Schedule / Are you opting for new Regime: Yes/ No / Return Summary.
Select the condition for ‘Residential status & click ‘No’. “Are you an FPI?”
6. SCHEDULE SALARY: Salary details are auto-filled, but you should take the following steps to avoid any validation errors:
“Click on ‘Expand All’ and then ‘Edit’. Select the nature of employment from the drop-down menu and enter the relevant details, such as perquisites, etc. Use the ‘Delete’ option to remove any entries that are not applicable.
7. SCHEDULE HOUSE PROPERTY: Click on ‘Expand All’ and then ‘Add Another’ to enter the details under ‘Address of Property’. Enter the details of the property owner. If the property is co-owned, specify the ownership percentage. Select the type of house property as ‘Let Out’ and enter the rent received. A standard deduction of 30% will be automatically calculated.” Tenant details are mandatory. If TDS has been deducted by the tenant, their PAN must also be provided.
If you have taken a loan for the let-out property, enter the relevant details. Under the new tax regime, interest on borrowed capital is allowed for let-out properties.
8. SCHEDULE CAPITAL GAIN As you begin filling in Schedule Capital Gains, a pop-up message will appear — click ‘OK’ to proceed. The relevance of this message will be explained later while entering details in Table F.”
Click on ‘Expand All’, then select ‘Add Another’, go to ‘Short-Term Capital Gains under Section 111A’, and enter the required details.
9. LONG-TERM CAPITAL GAIN Click on ‘Long-Term Capital Gain’, select ‘Sale of Residential Property’, then click on ‘Add Another’ and enter the relevant details.
In row b(bi), enter the ‘Cost of Acquisition without Indexation’. The system will automatically compute the indexed cost of acquisition.
10. SCHEDULE 112A: Click on ‘Add Another’ and enter the relevant details. Select ‘Before 23rd July 2024’ or ‘After 23rd July 2024’ from the drop-down menu.
Click on ‘Add Another’ and enter the details for securities sold after 31st July 2024.”
11. SCHEDULE FROM OTHER SOURCES Pre-filled details are available — simply review them and click ‘Confirm.
12. SCHEDULE CYLA, BFLA & CFL. Now comes a very important and crucial step. Before entering details in Table ‘F’ of the Capital Gains schedule, simply click on the schedules CYLA, BFLA, CL & SI, review them, and click ‘Confirm’.
13. TABLE “F” OF SCHEDULE CAPITAL GAIN Fill this table at the end, only after confirming the details from Schedules CYLA, BFLA, and CFL. Ensure that the details entered in this table exactly match those in Schedule CYLA. Most validation errors arise from Table F.
14. SCHEDULE TAX PAID Section-wise TDS details, including Self-Assessment Tax and Advance Tax, are auto-populated in this schedule. Simply review and confirm.
15. SCHEDULE PART B T1 & PART B TT1. These schedules display the computation of total income and tax liability. Review the details and confirm.
16. Finally, ensure you validate, verify, and submit your Income Tax Return.
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Disclaimer: The article is for educational purposes only.
The author can be approached at caanitabhadra@gmail.com
Author Bio
What we have report about the foreign shares held during the previous year ,whether they are considered as listed or unlisted ? We report them in Schedule FA and if we check they ask a question- whether do you hold unlisted shares at any time during the previous year .
These are considered as unlisted.
Enter the details in General Information < Whether you have unlisted share & select '" Foreign " in Tab " Type of Company .
Provide the details of foreign shares.
Thanks for detail explanation. Section 112A CSV template what we should fill in column 1b to upload the LTCG in ITR2
Total number of shares transferred in FY 2024-25
while validating ITR 2 FOR AY 2025-26 online, I get error of mismatch of entry in BFLA and CFL. Thereafter I am not able to edit Schedule CFL or BFLA online as there is no link seen..How to proceed, please educate…
If you have entered any detials in the CFL schedule , just click on the amount entered & edit .
BFLA , amount auto populates from the details entered in Schedule Capital Gain .
When I am uploading the enclosed csv_112A in the excel utility under 112a tab , it is getting validated with no error .the total coulmn is coming correct. But the last three cells related to the breakup of before and after 23 july not getting populated .Hence it is not appearing in schedule “CG” .Hence no tax is getting calculated. Table F is correctly filled. No validation errors in schedule “GC”, “112A”, CYLA,BFLA, CFL Please help me, tons of thanks to you.
I am a retired govt employee. At the time of retirement my pay was revised for fixing basic pension and my department(employer) recovered ₹ 3,31,396 back for the period 2008 to 2024, while I have already paid income tax on the above amount and filed ITR for related FY. Can I get refund of previous years(2008-2024) for the above amount?
in given calculations
a+b+c after it
should be cess @4 percent not surcharge right
Yes, it is a cess at 4% (not a surcharge).
my son is employed in europe and opened savings nre account in which no transactions have been effected so far.he has fixed deposits prior to leaving for Europe which earn interest .they are classified nro deposits due to his nre status.how to proceed with filing of itr 2
Select NRI in TAB ” General Information / Filing Status / NRI ” Enter all the requisite details .
Enter Interest amount in TAB ” Income from other source”
The total Tax Liability A + B + C i.e. 38032 +30750+255000= 323782 whereas you have written as 324282. There is a difference of Rs. 500/-. Please clarify if I am Wrong.
There was a small typographical error in Point 4.C.(g): Capital gain @ 20% on 12,77,500 is Rs 2,55,500.
( got rectified now).
Total is 38032 +30750+255500 = 3,24,282.
Sure Sur,
Share the details : caanitabhadra@gmail.com
MAdam please help me how to file ITR 2 when an indivudual has received Voluntary retirement benefit and ex-gratia on termination of employment.. And also how to file form 10E