Learning article
How to File ITR‑2 — For Capital Gains & Multiple Income Sources
A walkthrough for individuals and HUFs having capital gains, house property income, or foreign assets — what to prepare before filing ITR‑2.
Quick takeaways
ITR‑2 is for individuals and HUFs not having business/professional income.
Must be used if you have capital gains, more than one house property, or foreign income/assets.
Requires careful disclosure of all income and foreign assets even if nil tax.
Overview
When ITR‑2 applies
You earn income from salary/pension, house property (more than one), capital gains, or other sources.
You hold foreign assets, have signing authority in an overseas account, or earn foreign income.
You are a director in a company (even if no salary).
You cannot use ITR‑1 if any of these apply.
Important facts
Key schedules to fill
Schedule CG: Capital gains from sale of assets (equity, debt, property, gold).
Schedule FA: Foreign assets and income (even if nil).
Schedule 80G: Donations qualifying for deduction.
Schedule 80D: Health insurance premiums.
Key concepts
Documents you’ll need
Form 16 (if salaried), interest certificates, capital gains statements from brokers.
Purchase/sale deeds for property, gold receipts.
Foreign bank statements, if applicable.
Aadhaar, PAN, and bank account details for refund.
Key takeaways
Step‑by‑step approach
Gather all income proofs and capital gains calculations.
Check AIS and 26AS for pre‑filled data and match with your records.
Complete Schedule CG with cost of acquisition and sale consideration.
Disclose foreign assets truthfully — even $1 in a foreign account must be declared.
Verify and submit.
Common mistakes
Mistakes to avoid
Reporting only net gains instead of full sale consideration and cost.
Forgetting to claim indexation benefit where available.
Ignoring Schedule FA completely (heavy penalty for non‑disclosure).
FAQs
Common questions
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