For Individuals & HUFs with Capital Gains, Multiple Properties & Foreign Income
Schedule CG Computation. Schedule FA Foreign Asset Reporting. DTAA Support. Starting at ₹2,999 ComplianceBharo professional fee for end-to-end assistance. Government/statutory fees are charged separately at actuals.
ITR-2 is the income tax return form for individuals and Hindu Undivided Families (HUFs) whose income goes beyond what the simpler ITR-1can accommodate, but who still have no business or professional income to report. It sits in the space between ITR-1's narrow scope and ITR-3's business-income schedules — built for taxpayers with genuinely more complex personal finances rather than a running business.
In practice, ITR-2 becomes necessary the moment any one of a handful of conditions applies: capital gains from shares, mutual funds, or property; income from more than one house property; foreign assets or foreign-sourced income; serving as a director in a company; holding unlisted equity shares at any point during the year; or simply having total income above ₹50 lakh, regardless of how simple the income sources themselves are.
It's a notably broader form than ITR-1 in scope — covering capital gains, foreign assets, and virtual digital assets — while still deliberately excluding anything to do with running a business. That distinction is what determines whether ITR-2 or ITR-3 is the correct form for a given taxpayer.
| Parameter | Details |
|---|---|
| Governing Rule | Rule 12 of the Income-tax Rules, 1962, read with Section 139(1) of the Income-tax Act, 1961 |
| Applicable To | Individuals and Hindu Undivided Families (HUFs) with capital gains, more than one house property, foreign income/assets, or other conditions placing them outside ITR-1 — but with no business or professional income |
| Not Applicable To | Anyone with business or professional income of any kind — such taxpayers must use ITR-3, or ITR-4 where eligible for presumptive taxation |
| Residential Status | Available to residents, Resident but Not Ordinarily Resident (RNOR) individuals, and non-residents alike — unlike ITR-1, which is restricted to residents only |
| Key Schedules | Schedule CG (capital gains), Schedule FA (foreign assets), Schedule VDA (virtual digital assets), and Schedule AL (assets and liabilities, where total income exceeds ₹50 lakh) |
| Verification Modes | Aadhaar OTP, net banking, or a Digital Signature Certificate |
Schedule CG accommodates gains and losses across equity, debt, mutual funds, and property, computed separately by asset class and holding period, since each carries its own tax treatment.
Unlike ITR-1, ITR-2 allows income or loss to be reported from more than one house property, including cases where one property carries forward a loss from a prior year.
Schedule FA captures foreign bank accounts, equity holdings, immovable property, and other overseas assets, along with any signing authority held in a foreign account — mandatory disclosure regardless of whether the asset generated income.
Gains from cryptocurrency and other virtual digital assets are reported through the dedicated Schedule VDA, taxed under the specific provisions that apply to this asset class.
Where income is clubbed from a spouse, minor child, or other specified relation under Sections 60-64, ITR-2 provides the schedules needed to report that clubbed income correctly.
ITR-2 deliberately excludes any Profit & Loss account or business income schedule — the moment business or professional income enters the picture, the correct form becomes ITR-3.
Meeting any one of the following conditions — not necessarily all of them — is enough to place a taxpayer outside ITR-1's scope and into ITR-2.
| Condition | Details |
|---|---|
| Capital Gains | Any capital gains or losses from shares, mutual funds, property, or other capital assets — short-term or long-term |
| Multiple House Properties | Income or loss from more than one house property, including cases carrying forward a loss from an earlier year |
| Foreign Income or Assets | Holding any foreign asset, having signing authority in a foreign account, or having foreign-sourced income of any kind |
| Agricultural Income | Above ₹5,000 in the financial year |
| Company Directorship | Serving as a director in any company at any point during the year |
| Unlisted Equity Shares | Holding unlisted equity shares at any point during the year |
| High Total Income | Total income above ₹50 lakh in the year, even without any of the other conditions above |
| Residential Status | Non-residents and Resident but Not Ordinarily Resident (RNOR) individuals, regardless of income composition, are directed to ITR-2 rather than ITR-1 |
ITR-2's broader scope means a somewhat longer list of prerequisites than a simple salaried return.
ComplianceBharo's ITR-2 filing package starts at ₹2,999 as a professional fee for end-to-end assistance, covering capital gains computation, foreign asset reporting, regime comparison, and e-verification support — the full inclusion list is shown in the pricing card above.
Where your final quote lands depends on how involved your specific filing turns out to be — the number of capital gains transactions to compute (a handful of trades reads very differently from hundreds across multiple brokers), whether foreign assets need to be disclosed, whether more than one house property is involved, and whether DTAA relief or NRI-specific provisions apply. We assess this during the initial review and confirm the exact scope and fee before beginning work.
What you need depends on which of ITR-2's income categories apply to you — here's the typical checklist by category.
Gather Form 16 (if salaried), broker/AMC capital gains statements, property records, and any foreign asset documentation relevant to the year.
Cross-check TDS, dividend income, interest income, and reported securities transactions in Form 26AS and the Annual Information Statement against your own records.
Classify each capital gains transaction by asset type and holding period, apply the applicable tax treatment, and factor in any exemptions claimed under Sections 54, 54EC, or 54F.
Disclose every foreign bank account, investment, and asset held during the year in Schedule FA — this disclosure is mandatory regardless of whether the asset produced any income.
Aggregate income across all applicable heads, apply the relevant regime and rates, and arrive at the final tax payable or refundable figure.
Submit the completed ITR-2 return on the e-filing portal, after a final review of the capital gains, foreign asset, and other schedules for accuracy.
Complete verification via Aadhaar OTP, net banking, or DSC within 30 days of filing — a return that isn't verified in time is treated as though it was never filed.
ITR-2 largely follows the standard individual due date, but foreign asset disclosure carries a penalty risk of its own worth understanding separately.
| Compliance Requirement | Applicable Date / Rate | Details |
|---|---|---|
| ITR-2 Filing — Standard Due Date | 31 July of the assessment year | Applies to the large majority of ITR-2 filers, since ITR-2 does not involve business income that would otherwise require an audit |
| ITR-2 Filing — Partner in an Audited Firm | 31 October of the assessment year | An extended due date applies where a taxpayer's only business-adjacent income is remuneration or interest received as a partner from a partnership firm that is itself subject to tax audit |
| Belated Return | 31 December of the assessment year | Filed under Section 139(4) after missing the original due date, subject to a late fee under Section 234F |
| Late Filing Fee — Section 234F | ₹1,000 where total income is up to ₹5 lakh; ₹5,000 where it exceeds ₹5 lakh | Levied automatically where the return is filed after the due date but before 31 December |
| Interest — Sections 234A / 234B / 234C | 1% per month or part thereof | Charged respectively for late filing with unpaid tax outstanding, a shortfall in advance tax paid, and deferred or short quarterly instalments |
| Foreign Asset Disclosure (Schedule FA) | Same due date as the ITR itself | Beyond ordinary late-filing consequences, inaccurate or missing disclosure of foreign assets can separately attract penalty under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 |
| e-Verification Deadline | Within 30 days of filing | A return that isn't e-verified within this window is treated in law as though it was never filed |
Have questions about filing your ITR-2 with capital gains or foreign assets? Let our experts help you get it filed accurately.
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