With ITR-2 now available for the assessment year 2026-27, taxpayers with investment portfolios must navigate a significantly changed landscape. If you earned income from the stock market, sold a property, or traded in crypto—and you do not have business or professional income—this is your mandatory filing path.
Here is a breakdown of how to report your gains effectively.
1. The First Step: Verification, Not Just Filing
Before you even touch the capital gains schedule, you must download and review your AIS (Annual Information Statement) and Form 26AS. By June 15th, these documents are typically fully updated with your TDS/TCS details and high-value transactions reported by brokers and registrars. Ensure your internal records match these statements to avoid discrepancies.
2. Reporting Stock Market & Mutual Fund Gains
Reporting shares and mutual funds has become more structured. You generally need your consolidated “Capital Gains Statement” from your broker (like Zerodha).
- Short-Term Capital Gains (STCG): For shares held up to 12 months, you report the consolidated sale and purchase values. Important: You can deduct transfer expenses, but you cannot deduct Security Transaction Tax (STT).
- Long-Term Capital Gains (LTCG): If you held shares for more than 12 months, you must use Schedule 112A.
- For shares bought after January 31, 2018, you can report consolidated data.
- For shares bought before January 31, 2018, detailed scrip-wise data is mandatory.
- Remember, there is an exemption of up to ₹1,25,000 on LTCG from the stock market; tax is charged at 12.5% on the excess.
3. Real Estate: The New Indexation Rules
Reporting property sales (Land and Buildings) is now more complex due to the recent law changes.
- Holding Period: 24 months or less is considered short-term; beyond that is long-term.
- Tax Calculation: For long-term gains, indexation has been largely removed, and a flat 12.5% rate applies.
- The Benefit for Older Properties: If you acquired property before July 23, 2024, the ITR system will automatically calculate the tax using both the old method (20% with indexation) and the new method (12.5% without indexation) and allow you to pay the lower amount.
- Mandatory Details: You must provide the buyer’s details (Name and PAN/Aadhaar) and the Stamp Duty Value of the property.
4. Virtual Digital Assets (Crypto & NFTs)
If you traded in “Virtual Digital Assets” (VDA), you must report them in Schedule VDA.
- The Catch: You only report the cost of acquisition and the sale price.
- No Deductions: You cannot claim any expenses or set off any losses from crypto against other income.
5. Don’t Forget the Quarterly Break-up (Table F)
A common mistake is ignoring Table F (Information about Accrual/Receipt of Capital Gains). You are required to break down your capital gains into quarterly periods. This data must match the figures in your Schedule BFLA (Brought Forward Loss Allowance). Filling this correctly is essential if you want to avoid interest penalties under Section 234C.
6. Carrying Forward Losses
If you have incurred losses this year or have losses from previous years, ensure they are correctly entered in the Schedule for Details of Losses. If you fail to carry them forward in the current year’s return, you lose the right to set them off against future profits.
Note: If your total income exceeds ₹1 Crore, you have the additional responsibility of filling out the Schedule for Assets and Liabilities.
***
Queries or assistance required related to ITR filling mailed at mamta0581@gmail.com
Author Bio
