# ITR-2 Filing > ITR-2 is the income tax return form for individuals and HUFs who have capital gains, more than two house properties, foreign income or income above ₹50 lakh, but no business income. It is meant for investors, NRIs, company directors and salaried people with capital gains. At ITR Filing Online (itrfilingonline.in), a tax expert prepares and files your ITR-2 Filing online within 2–3. URL: https://itrfilingonline.in/itr-2-filing Turnaround: 2–3 working days Contact: +91 99111 46650 (call/WhatsApp), go@itrfilingonline.in ## About ITR-2 is the return form for individuals and Hindu Undivided Families (HUFs) who do not earn any income from business or profession, but whose income cannot fit into ITR-1. In practice, it is the form for investors who sold shares, mutual funds, gold or property, for non-residents with Indian income, and for salaried people earning above ₹50 lakh. For FY 2025-26 (AY 2026-27), it is filed under the Income-tax Act, 1961. Who must use ITR-2 Anyone with short-term capital gains, or long-term gains above ₹1.25 lakh under section 112A Anyone who sold property, gold, debt funds or unlisted shares Individuals with total income above ₹50 lakh and no business income Non-residents and “not ordinarily resident” individuals Residents holding foreign assets, foreign bank accounts or foreign ESOPs Company directors and holders of unlisted equity shares Anyone with capital losses to carry forward If you have business income, including F&O trading, you need ITR-3 instead. If you only have salary and a small equity gain within ₹1.25 lakh, ITR-1 may still be enough, so we check this first. Choosing the wrong form can lead to a defective return notice under section 139(9). Key capital gains rules For transfers on or after 23 July 2024, long-term gains on listed equity shares and equity funds (section 112A) are taxed at 12.5% on the amount above ₹1.25 lakh a year. Short-term gains on listed equity (section 111A) are taxed at 20%. Listed securities become long-term after 12 months; most other assets after 24 months. Debt mutual fund units bought on or after 1 April 2023 are taxed at slab rates, whatever the holding period. For land or a building bought before 23 July 2024, a resident individual can pay the lower of 12.5% without indexation or 20% with indexation. The 87A rebate does not reduce tax on special-rate gains under sections 111A and 112A. Common mistakes we see Missing the grandfathering benefit for equity bought before 1 February 2018 Reporting mutual fund switches as if no sale happened Not reporting Schedule FA for foreign shares or ESOPs Filing late and losing the right to carry forward capital losses NRIs claiming the 87A rebate, which is only for residents How our expert handles your ITR-2 Step 1: We confirm your residential status and the right form. Step 2: We collect broker, CAMS/KFintech and property documents. Step 3: We compute each sale with its holding period, cost and rate. Step 4: We set off losses and fill Schedule CFL for carry forward. Step 5: We match everything with AIS, share a summary and file after your approval. A short example Suppose in FY 2025-26 you sold equity mutual fund units held for three years with a gain of ₹2,25,000, and shares held for eight months with a gain of ₹50,000. The long-term gain above the ₹1.25 lakh exemption is ₹1,00,000, taxed at 12.5%, giving ₹12,500. The short-term gain of ₹50,000 at 20% gives ₹10,000. Total tax on gains is ₹22,500, and with 4% cess of ₹900, it comes to ₹23,400. This is payable in addition to tax on your salary or other income. ## What is covered - **Capital gains computation**: Short-term and long-term gains on shares, equity and debt funds, property and other assets, with the correct rates and exemptions. - **Loss set-off & carry forward**: We set off losses as the law allows and carry forward the rest so you can use them in future years. - **NRI returns**: Residential status check, Indian income, TDS refunds and DTAA relief where applicable. - **Foreign assets (Schedule FA)**: Residents with foreign bank accounts, shares or ESOPs must report them — we complete Schedule FA and foreign tax credit. ## When you need it - **You sold shares or mutual funds**: Even small redemptions appear in AIS and must be reported. - **You sold a house or land**: Correct indexation, exemptions and reinvestment benefits. - **You are an NRI**: Claim refunds of excess TDS on rent, interest or property sale. - **You own foreign stocks or ESOPs**: Schedule FA reporting is mandatory for residents. ## Benefits - **Accurate capital gains**: Every trade computed — no estimates. - **Losses preserved**: Carried forward correctly for future use. - **NRI-ready**: Residential status and DTAA handled. - **AIS-matched**: Fewer notices, faster processing. ## Documents required - PAN and Aadhaar - Form 16 (if salaried) - AIS / Form 26AS - Capital gains statement from broker - Mutual fund statement (CAMS / KFintech) - Property sale & purchase deeds (if sold) - Foreign bank / stock statements (if any) - Passport & travel dates (for NRIs) ## Process 1. **Book & talk to an expert** — You request a callback or message us on WhatsApp. We understand your income sources in a 10-minute call. 2. **Share documents** — Send Form 16, AIS/26AS and proofs on WhatsApp or email. We tell you if anything is missing. 3. **We prepare your return** — We reconcile AIS and 26AS, compare the old and new regime and prepare the computation. 4. **You review & approve** — You see the final tax, refund and every figure before anything is filed. 5. **Filed & e-verified** — We file on the official portal and help you e-verify with Aadhaar OTP. You receive the ITR-V and computation. ## FAQs ### How is long-term capital gain on equity mutual funds taxed? Units of equity-oriented funds held for more than 12 months give long-term gains under section 112A. For transfers on or after 23 July 2024, the first ₹1.25 lakh of such gains in a year is exempt and the rest is taxed at 12.5% plus cess. Units held for 12 months or less are taxed at 20%. ### Is indexation still available when I sell a house or land? Partly. For a resident individual or HUF selling land or a building bought before 23 July 2024, tax can be paid at the lower of 12.5% without indexation or 20% with indexation. For property bought on or after that date, and for non-residents, only the 12.5% rate without indexation applies. ### Can I get the section 87A rebate on capital gains tax? Not on gains taxed at special rates. For AY 2026-27, the law clearly states that the 87A rebate does not apply to tax on short-term gains under section 111A or long-term gains under section 112A. The rebate still applies to tax on your other normal income, if your taxable income qualifies. ### How can I save tax on capital gains from selling a house? Section 54 exempts the gain if you buy or build another residential house in India within the time allowed. Section 54EC lets you invest up to ₹50 lakh in specified bonds within six months. Unused amounts can be kept in the Capital Gains Account Scheme before the due date, subject to conditions. ### How is my residential status decided for income tax? You are generally resident if you stay in India for 182 days or more in the year, or 60 days in the year and 365 days in the four earlier years. For Indian citizens visiting India, the 60 days becomes 120 days if Indian income exceeds ₹15 lakh. Status decides which income is taxable. ### Do NRIs need to file ITR if TDS is already deducted? An NRI must file if taxable Indian income exceeds the basic exemption limit. Even otherwise, filing is often worth it because TDS on property sales, rent or interest is frequently deducted at higher rates than the actual tax due. The return is the only way to claim back the excess as a refund. ### How are ESOPs taxed and where are they reported? ESOPs are taxed twice. On exercise, the difference between market value and the price you pay is taxed as salary perquisite. On sale, the gain over that market value is a capital gain, reported in ITR-2. Residents holding shares of a foreign employer must also report them in Schedule FA. ### Is money received from a share buyback taxable? Yes. For buybacks on or after 1 October 2024, the full amount received is taxed as dividend at your slab rate. The cost of the shares bought back is treated as a capital loss, which can be set off against other capital gains or carried forward, if the return is filed on time. --- ITR Filing Online is a brand of TaxCaller India LLP (LLPIN AAQ-7388).