Taxpayers with income from salary, capital gains, or unlisted equity shares can file ITR-2. For AY 2025-26, the ITR-2 excel utility has six updates, including reporting capital losses on share buybacks. The article provides a step-by-step guide on filing ITR-2 online and using the excel utility, covering capital gains reporting and other essential details.
ET OnlineStep-by-step guide on how to file ITR-2 for AY 2025-26 with salary, capital gains, foreign income and others online and with excel utility
Taxpayers who earn income from salary, capital gains, or have invested in unlisted equity shares, need to file their Income Tax Return using the ITR-2 form. For the Assessment Year 2025-26 (FY 2024-25), there are six significant updates in the ITR-2 excel utility. Some of these updates relate to reporting of capital losses on share buyback, bifurcation of acquisition and improvement costs for real estate transfers, among others.
Check out the information below to learn how to file your ITR-2 online or with the excel utility.
Who needs to file ITR-2 for AY 2025-26 (FY 2024-25)?
According to chartered accountant Abhishek Soni, co-founder, Tax2Win, here’s the list of incomes that require you to file ITR-2:
“Income from salary or pension
Income from house property(one or more)
Income from other sources, including income from winning a lottery, income from owning and maintaining horse races, or income taxable at special rates.
Persons who had investments in unlisted equity shares at any time during the entire financial year.
An individual who is a director in a company.
An individual who is a Resident(ROR/RNOR)or non-resident.
Income earned from capital gains
Income from foreign assets/ other foreign income.
Agricultural income of more than Rs 5,000/-
Incomes where clubbing provisions are applicable
Individuals having a financial interest in assets located outside India, which includes any signing authority for accounts held outside India.
One who desires to carry forward or bring forward loss under income from house property.
Any tax has been deducted under Section 194N
In cases where payment or deduction of tax has been deferred on ESOP.”
Soni says: “The total income can exceed Rs 50 lakh in ITR-2 unlike ITR-1.”
The ITR-2 form includes several schedules and in this article, we will walk you through a step-by-step guide, using capital gains as an example– covering both long and short term gains.
Here’s Soni’s step-by-step guide to filing ITR-2 using the excel utility:
Navigate to “Downloads” > ITR Forms > Select ITR-2 > Download Excel utility
Step 2. Install and launch the ITR-2 excel utility
Extract the ZIP file you downloaded.
Open the utility and click Continue to proceed.
Step 3. Filling Schedule 'Part-A General’
You must fill in your basic details in this schedule
Name, address, PAN, status, Name, Aadhaar, DOB, Mobile & Email
Select your Residential status (choose Resident/Non-Resident accordingly)
Select your filing type, Original or Revised.
Select the ITR filing section, the date of filing the ITR, document identification number (if filed in response to a notice).
If you are filing a return under section 139(1), you can choose to switch from the new to the old regime by selecting ‘Yes’ under “Do you wish to exercise the option u/s 115BAC(6) of opting out of the new tax regime?”
If your income is below the threshold required for mandatory ITR filing, but you are still filing ITR due to fulfilling any of the mandatory conditions listed in the seventh proviso to section 139(1), then select the reason accordingly.
If you are a director in the company, fill in the required details like company name, type, PAN, DIN, and whether its shares are listed or unlisted.
If you have held any unlisted equity shares in the FY, you must mention their details in the table given at the end.
Step 4. Filling the Schedule 'Capital Gains' This tab is for reporting the sale of capital assets like shares, mutual funds, real estate, etc.
Short-Term Capital Gains -
Sale of Immovable Property
Enter the details of the sale of immovable property.
Fill in the date of acquisition and the date of sale of the property
Full value of consideration, stamp duty value of the property.
Enter the deductions like cost of acquisition, cost of improvement, and transfer expenses
Enter the short-term capital gains on immovable property and the details of the transfer of immovable property.
Sale of Equity Shares and Mutual Funds
Enter the full value consideration, cost of acquisition, cost of improvement, and expenses on transfer
Fill in the short-term capital gain on equity or equity-oriented mutual fund.
Enter the details of any unutilized capital gains deposited in the Capital Gain Account Scheme (CGAS).
Long-Term Capital Gains
Fill in the details of the long-term capital gains
Enter details like date of acquisition, date of sale, full value of consideration, and stamp duty value.
Next, enter the cost of acquisition, cost of improvement, and transfer expenses.
Fill in the amount of deductions under section 54, 54B, 54F, 54EC, if applicable.
Note: While entering your capital gain details, make sure to classify your capital gains before and after 23rd July 2024 and mention accordingly.
Enter the details of LTCG on the sale of unlisted bonds and unlisted debentures.
Enter the details on the sale of listed securities or zero-coupon bonds.
Step 5: Details of Set-off of Current Year Capital Losses Enter the details of the short-term and long-term capital losses set off against the capital gains in the table provided.
Step 6: Final Submission
Click on "Validate" on each sheet after filling
Go to the "Part A – General" tab and click "Calculate Tax"
Save the XML and upload the JSON via the Income Tax e-filing portal
e-verify the ITR to complete the process
How to file ITR-2 online via the e-filing ITR portal?
Here’s a step-by-step guide on how to file ITR-2 via the online e-filing ITR portal:
Step 1: First login on the e-filing ITR portal using your credentials. Once logged in go to the e-file tab and hover over the ‘Income Tax Returns’ button and then click on ‘File Income Tax Return’ button. A new webpage will open and it will ask for some details – assessment year, mode of filing (online/offline). Click on ‘continue’ once done.
Step 2: A new webpage will open and here you need to click on a button called ‘Start New Filing’. When you click this button a new web page opens which asks you to ‘Please select the status applicable to you to proceed further’. Click ‘Continue’. In this example we used ITR-2.
Step 3: Here’s a list of do documents that will help you file the ITR-2 faster:
Step 4: You must answer why you are filing ITR. Once the reason is selected, then click on ‘Continue’. A new webpage opens and here you can check the pre-filed data. Once you have checked all the pre-filled data click on the ‘Proceed to Verification’ button. Do remember to e-verify your filed ITR within 30 days of filing it.
The Income Tax Department said on the e-filing ITR portal: “Income Tax return (ITR) is pre-filled based on the information available for pre-fill on e-Filing. There may be situations where such information may not be complete. The facility of pre-filling is only for providing assistance to the Taxpayers for filing their ITRs. Please verify the pre-filled data with your records and AIS/TIS before finalising and submitting the ITR. You have the option to make changes to pre-filled data.”
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