ITR-2 Form for Income from Capital Gains
What is ITR-2?
ITR-2 Form is the Income Tax Return form for all those Individuals and HUFs who do not have any sort of Business or Professional Income.
Who can file ITR-2?
ITR-2 can be filed by an individual or a Hindu Undivided Family (HUF) whose total income includes:
- Salary/pension income.
- Income from Multiple House Property.
- Capital Gains income.
- Income from Other Sources (including Winnings from Lottery and Income from Race Horses).
- Income from Agriculture Income more than Rs. 5,000.
- Foreign Assets/ Foreign Income.
Further, ITR-2 can be used where the income of another person is clubbed with a taxpayers income provided such income falls in any of the above categories.
Who can not file ITR-2?
- An individual whose total income includes Business or Professional income.
- A taxpayer earning income from Partnership Firm can not file ITR-2. For declaring these types of Income, you may file ITR-3 or ITR-4.
List of documents required to file ITR-2
You should gather the following documents for a smooth process.
- PAN (Permanent Account Number)
- Aadhaar Card
- Bank account details
- TDS certificates
- Challan of taxes paid
- Details of original return if filing revised return
- Details of notice if filing in response to the notice
Documents on the basis of a type of Income:
- Salary Income
- Form-16/ Salary slips received from your employer and
- Pension statement/passbook.
- House/Property Income
- Coowner details in case the property is coowned,
- Address of the property,
- In case of house/property loan Interest certificates/repayment certificate from a bank,
- In case of let out property Rent agreement.
- Other sources
- Savings/current account statements/Passbook.
- Interest certificates for deposits/bonds/NSC.
- PPF account statement/Passbook.
- Dividend warrants/counterfoils.
- Rent agreement in case of let out machinery.
- Details about receipts of any other incomes.
- Capital Gains
- For land/building Sales & Purchase deeds, stamp duty valuation.
- Details of improvement costs.
- For securities Contract notes/stock ledgers/trading statement.
- For other capital assets Cost of purchase, cost of improvement & sales receipts.
- Details of expenses incurred on a transfer of capital assets.
- Details of investments in order to claim exemptions.
- Capital gains deposit account details if any.
- If you’re eligible for any Section 80 Deductions, you may need to acquire the relevant documents from the list:
- PPF account statement/Passbook.
- Fixed deposit certificates/statements.
- ELSS/ULIP/NSC investment details.
- Life insurance premium receipts.
- Medical insurance premium receipts.
- House/property loan interest certificate/repayment statement.
- Education loan interest certificate/repayment statement.
- Tuition fees receipts.
- Donation receipts.
1. Can NRI file ITR-2?
Yes, NRI can file ITR-2. If NRI is earning any salary income, rental income, capital gain income or interest income then he/she can file ITR-2.
2. Can I file ITR-2 in case of income from partnership firm?
No. If you are a partner in partnership firm/LLP then you need to file ITR-3. You need to enter details of the firm in which you are a partner and then add details of your income form that firm.
3. Can I file ITR-2 after the due date?
Yes, ITR-2 can be filed after the due date. It will be considered as a belated return. And late filing fees will be levied while filing a belated return.
4. Can I file ITR-2 if I have sold the house during the year?
Any consideration received from the sale of a property will be covered under the head income from Capital Gain. Hence you can file ITR-2 for reporting capital gain.