ITR-2: everything but business income

If you are an individual or HUF and something disqualified you from the Sahaj — a capital gain, a second property, a foreign account, a directorship — ITR-2 is where you land, as long as you have no business or professional income.

Start your ITR-2 Not sure? Check your form

Schedule CG built from your broker statement and AIS, Schedule 112A scrip by scrip, grandfathering applied at the 31 January 2018 fair market value.

Who files it When it is ITR-3 instead What the form asks for Key dates How BharatTax prepares it Questions

Who files ITR-2

ITR-2 is for an individual or a Hindu Undivided Family with no income from business or profession. It is the form when any of the following is true:

You have capital gains — listed shares, mutual funds, property, gold, unlisted shares or virtual digital assets.
You own more than one house property.
Your total income exceeds ₹50,00,000.
You are a Non-Resident or RNOR.
You hold foreign assets, earn foreign income, or have signing authority in a foreign account — Schedule FA.
You are a director in a company, or held unlisted equity shares during the year.
Your agricultural income exceeds ₹5,000.
You are carrying losses forward, or setting off brought-forward losses.
Your employer deferred tax on ESOPs u/s 192(1C).

Everything ITR-1 carries, ITR-2 carries too — salary, house property, other sources, Chapter VI-A. It simply has the schedules the Sahaj lacks.

Two of those schedules account for most of the reason people end up here: foreign shares and Schedule FA, which applies in a year you sold nothing at all, and virtual digital assets, which are taxed on terms of their own.

Schedule AL

Where total income exceeds ₹50,00,000, Schedule AL becomes mandatory: a statement of assets and liabilities as at 31 March. BharatTax opens the schedule automatically once your computed income crosses the line, rather than leaving you to notice.

When ITR-2 is not enough

Three things push an individual or HUF from ITR-2 up to ITR-3. All three are about business income.

If this is true for you	Which form instead
You have income from business or profession that is not presumptive	ITR-3
You are a partner in a firm and receive a share of its income, interest or remuneration	ITR-3
You have presumptive income but opted out of presumptive taxation in one of the last five years	ITR-3

These are the checks BharatTax itself runs. The product applies the same rules to your figures as you enter them and moves you to the right form before you file — it does not let you submit a return on a form you are not eligible for.

What ITR-2 asks for

ITR-2 is a long form because it has to hold every head except business income. You only see the schedules your answers make relevant.

Schedule	What it carries
Schedule S	Salary in full detail — perquisites, profits in lieu, allowances exempt u/s 10, and the standard deduction.
Schedule HP	Each house property separately: annual value, municipal taxes, 30% standard deduction, interest on borrowed capital.
Schedule CG	Short-term and long-term capital gains by asset class, with the date-of-transfer split at 23 July 2024 that the Finance Act 2024 introduced.
Schedule 112A	Listed equity and equity mutual funds, scrip by scrip, with fair market value as at 31 January 2018 for grandfathering.
Schedule VDA	Virtual digital assets, taxed at 30% u/s 115BBH with no deduction other than cost.
Schedule OS	Other sources, including dividend, winnings and income taxed at special rates.
Schedule CYLA / BFLA / CFL	Current-year set-off, brought-forward set-off, and losses carried forward — in the sequence Sections 70 and 71 require.
Schedule VIA	Chapter VI-A deductions, gated by the regime you choose.
Schedule AL	Assets and liabilities, where total income exceeds ₹50,00,000.
Schedule FA	Foreign assets: accounts, equity, immovable property, trusts, and any other capital asset held abroad.
Schedule FSI / TR / 112A	Foreign source income, tax relief claimed u/s 90, 90A or 91, and the DTAA article relied on.
Schedule ESOP	Deferred ESOP tax u/s 192(1C), tracked across the five-year deferral window.

Key dates for AY 2026-27

Assessment year 2026-27 covers the income you earned in the previous year 2025-26 — 1 April 2025 to 31 March 2026.

1 April 2026Filing opens for AY 2026-27

31 August 2026Due date u/s 139(1)

31 December 2026Belated return u/s 139(4)

31 December 2026Revised return u/s 139(5)

A return filed after the due date attracts a late fee u/s 234F and interest u/s 234A, and losses other than house-property loss can no longer be carried forward. BharatTax computes 234A, 234B and 234C on the return itself, so the figure you see is the figure you pay.

How BharatTax prepares your ITR-2

The capital gains schedule is the reason people dread this form. It is the part BharatTax does most of the work on.

Import everything

Form 16, 26AS, AIS, and your broker or registrar statement. The AIS carries your securities transactions; BharatTax dedupes them internally before matching them to the 26AS.

Build Schedule CG

Each transaction classified by asset and holding period, with the pre- and post-23-July-2024 rate split applied and 112A grandfathering computed off the 31 January 2018 fair market value.

Set off in the right order

Current-year losses, then brought-forward, then what carries forward — the Section 70-71 sequence, computed rather than typed.

Both regimes, then file

Old and new computed side by side, a computation of income PDF, and the ITD JSON. Every download is checked against BharatTax’s own validator first. CBDT has not published a JSON schema for ITR-2 for AY 2026-27, so no schema check is claimed for it — the product reports that pair as unchecked rather than as a pass.

ITR-2 — common questions

I only sold some mutual funds. Do I really need ITR-2?

If your long-term gain u/s 112A is within ₹1,25,000, you have no capital loss to carry, and you otherwise qualify, you can stay on ITR-1. Anything else — a short-term gain, a debt fund, a property — means ITR-2.

What is Schedule FA and who has to fill it?

Schedule FA is the disclosure of foreign assets held at any time during the relevant period, by a Resident and Ordinarily Resident. It is not about income; an asset that earned nothing still has to be disclosed. Non-disclosure carries consequences under the Black Money Act, so it is filled whether or not there is income to report.

I hold ESOPs of a foreign parent company. Which form?

ITR-2, at least. Foreign shares are a foreign asset and go in Schedule FA, and the gain on sale goes in Schedule CG. If your employer also deferred tax on the perquisite u/s 192(1C), Schedule ESOP applies too.

Does grandfathering still apply to shares bought before 2018?

Yes. For listed equity and equity mutual funds, the cost for 112A purposes is the higher of actual cost and the fair market value as at 31 January 2018, capped at the sale value. BharatTax applies it scrip by scrip in Schedule 112A.

I am a Non-Resident with only Indian salary and bank interest. ITR-1 or ITR-2?

ITR-2. ITR-1 is restricted to individuals who are Resident and Ordinarily Resident, whatever the size or composition of the income.

Capital gains, computed rather than typed

Schedule CG from your statements, 112A scrip by scrip, the set-off sequence in the order the Act requires, and both regimes compared.

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