If you earn income from capital gains through equity shares, mutual funds, or house property, you must report it in your income tax return. For the assessment year 2024-25, taxpayers with capital gains should choose ITR-2 while filing their returns. To file ITR-2 online for income from capital gains for FY2023-24, ensure accurate details and follow the step-by-step e-filing process provided by the Income Tax Department.
1. Prepare all relevent documents
- Form 16 from your employer.
- Stock, Bond and Mutual Fund Capital Gains Statements from Brokers or Banks
- Purchase and sale documents of any property (in case any).
2. Download ITR 2 form: Visit the official income tax department e-filing website and download the form or use their online e-file portal.
3. Enter personal information: First, you need to enter your individual information - Name, PAN number, Address, and email.
4. Report income from salary or pension: Form 16 must be used to detail your salary or pension income in an accurate manner.
5. Declare income from house property: Show information on all house properties in the respective section of the return if you have income from more than one house property.
6. Disclose Capital Gains:
- For short-term capital gains, you have to be under the head of section 111A.
- Compute long-term capital gains under section 112A and ensure you disclose the value of assets sold/purchased correctly along with adjustment for cost indexation if applicable.
7. Provide details of foreign assets (If applicable): Please indicate all foreign assets and the income from them are required.
8. Deductions and exemptions: Claim deductions under section 80C, section 80D, and others as applicable to you. Also, mention all exemptions related to capital gains, e.g. sale of residential property which has resulted in LTCG and you used this money to buy another house – Sec 54.
9. Review tax liability: After the applicability of the deductions and exemptions, calculate the total tax liability.
10. Submit and verify: After completing the form, submit it online. The ITR can then be e-verified with Aadhaar OTP, bank account, or digital signature.
