How to Fill Long Term Capital Gain in ITR 2?

For individuals who earn more than 50 lakhs in a fiscal year or who have investments in stocks, mutual funds, or other assets that provide capital gains, ITR-2 is frequently utilised. It is important for you to understand how to fill long term capital gain in ITR 2. You can file it by filling it via Income Tax e-filing portal.

How to Fill Long Term Capital Gains in ITR 2?

I have shared the process earlier, so I am not repeating it again. However, I am sharing some points that you must know.

In Schedule CG Capital Gains, Part B is dedicated to long-term capital gains. You need to report each LTCG transaction under the appropriate sub-head depending on asset type real estate, shares, mutual funds, etc. For example:

1. B1: LTCG from sale of land or building enter individual property details (date of acquisition, sale, indexed cost, exemption claimed under Section 54, etc.) for each asset.

2. B4 / B7: LTCG from listed shares or equity mutual funds where STT was paid (Schedule 112A for residents, 115AD for non-residents) you must enter scrip-wise details: ISIN, sale proceeds, cost of acquisition, date of purchase and sale. These gains are taxed at 10%, with the first Rs1 lakh exempt.

For other long-term assets like unlisted shares, bonds, or immovable property, enter them under appropriate sub-items (B5‑B8 for non-residents) in Schedule CG (Part B).

If you have multiple LTCG from the same asset type (e.g., two land sales), prepare separate rows for each. Log into the e‑Filing portal and select Schedule Capital Gains followed by Capital Gains (Schedule CG) to fill ITR 2. 

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Everyone must use the designated IT returns form to file their taxes. Taxpayers must submit ITR Form 2 to the Income Tax Department in order to file an ITR for capital gains. However, you must file ITR-3 as the income tax return for capital gains if your total income for a given fiscal year includes income from a business or profession. Let me share the process of how to fill long term capital gain in ITR 2 with you.

How to Fill Long Term Capital Gains in ITR 2?

ITR 2 is for individuals and Hindu Undivided Families (HUFs) not having income from business or profession. Use ITR 2 if you have LTCG and other sources of income like salary, house property, or interest.

LTCG = Sale Price - Indexed Cost of Acquisition - Indexed Cost of Improvement - Expenses

Here is the process you can follow.

1. Download the ITR-2 form from the Income Tax e-filing portal.

2. Open the \"Schedule Capital Gains (CG)\" section. This schedule deals with both long-term and short-term capital gains.

3. Under the LTCG section, fill in details for gains from different sources, such as.

4. Equity shares or equity-oriented mutual funds: Taxed at 10% if exceeding Rs.1 lakh, without indexation.

5. Sale of property or other assets: Apply indexation benefits and report the net capital gain.

6. Exempted LTCG (e.g., under Sections 54, 54EC, or 54F): Report the portion reinvested in eligible assets.

7. Mention asset description, acquisition date, sale date, sale consideration, cost of acquisition, and improvement costs (indexed wherever applicable).

8. Claim exemptions if you’ve reinvested the gains in bonds, residential property, or other qualifying assets.

9. Review the filled data for accuracy. Validate the form and calculate tax liability using the e-filing portal’s tools.

10. Submit the ITR online and e-verify using Aadhaar OTP, net banking, or other methods.

I hope you found this helpful.

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How to Show Sale of Property in Income Tax Return (ITR-2)

Wondering

how to fill long term capital gains in ITR 2

. Filing Long-Term Capital Gains (LTCG) in ITR-2 in India involves reporting the gains from the sale of capital assets held for more than a specified period.

How To Fill Long Term Capital Gain in ITR 2?

ITR-2 is used by individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession. Here's a step-by-step guide:

• Collect Necessary Information

1. Details of the asset sold: Date of purchase, purchase price, date of sale, sale price.

2. Indexed Cost of Acquisition: Use the Cost Inflation Index (CII) to calculate the indexed cost of acquisition and improvement.

3. Details of expenses: Include any expenses incurred in connection with the sale, such as brokerage or legal fees.

• Fill in your personal details, such as name, PAN, address, and contact information.

• Long-term capital gains (LTCG) on sale of listed equity shares or equity-oriented mutual funds: Report under section 112A. Gains above Rs. 1 lakh are taxable at 10%.

1. Full value of consideration: Mention the sale price.

2. Deductions: Include cost of acquisition, indexed cost of acquisition, and any transfer expenses.

• LTCG on other assets (like property, gold, unlisted shares):

1. Full value of consideration: Mention the sale price.

2. Deductions: Enter the indexed cost of acquisition, indexed cost of improvement, and transfer expenses.

• Enter details if you're claiming exemptions under Sections 54, 54EC, or 54F. If applicable, report any long-term capital losses from previous years that you wish to set off against the current year's gains.

• Report any remaining unabsorbed losses that can be carried forward to subsequent years. Fill in the verification section, ensuring that all the information provided is accurate and complete.

• E-verify the return using methods like Aadhaar OTP, net banking, or by sending a signed physical copy (ITR-V) to the Centralized Processing Centre (CPC) within 120 days of e-filing.

• For paper filing, sign and submit the ITR-2 form at the designated income tax office.

Filing LTCG in ITR-2 requires accurate reporting of gains and claiming eligible deductions or exemptions. This is how to fill LTCG in ITR 2.

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Wondering

how to fill long term capital gain in ITR 2

? Filling long-term capital gains (LTCG) in ITR-2 (Income Tax Return Form 2) involves reporting gains from the sale of assets like property, stocks, mutual funds, etc., held for more than a specified period.

• Visit the Income Tax Department's e-filing portal (

  https://www.incometax.gov.in/iec/foportal/

  ) and download the latest version of the ITR-2 form applicable for the assessment year.

• Fill in your personal details such as name, PAN, address, and other required information in the applicable sections of the form.

• In the 'Income Details' section, navigate to the Schedule CG (Capital Gains) to report your long-term capital gains. Here's how to fill it.

• In this section, you'll report details of your capital gains from various assets.

  • Part A

    : Provide general information like your PAN, name, and details of the asset sold.

  • Part B

    : This section requires details of the long-term capital gains eligible for exemption under various sections like 54, 54B, 54D, etc. If you've reinvested LTCG in specified assets to claim exemptions, provide the relevant details here.

  • Part C

    : Report the taxable long-term capital gains. Calculate the gains by deducting the indexed cost of acquisition/improvement from the full value of consideration received on sale.

  • Part D

    : If you've incurred expenses on the sale transaction, such as brokerage fees, legal fees, etc., report them here.

• After entering all relevant details, compute your tax liability on LTCG. Long-term capital gains are taxed at a flat rate of 20% (with indexation benefits) for most assets, except for equity shares and equity-oriented mutual funds, which are subject to a special rate of 10% without indexation if the gains exceed ₹1 lakh.

• Report any advance tax paid, self-assessment tax, or TDS (Tax Deducted at Source) related to LTCG in the applicable sections.

• After filling in all the required details accurately, verify the information provided and submit the ITR-2 form electronically. You can verify the return using Aadhaar OTP, net banking, or by generating an Electronic Verification Code (EVC).

• Upon successful submission, you'll receive an acknowledgment (ITR-V) on your registered email address. Keep this acknowledgment for your records.

This is how to fill long term capital gain in ITR 2

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