ITR-2: For Capital Gains, NRIs & Higher Incomes
When your income is too varied for the simple Sahaj form — capital gains, more than two houses, foreign assets or income above ₹50 lakh — but you have no business income, ITR-2 is your form. Here's who files it for AY 2026-27.
File ITR-2 with a CAITR-2 is for individuals and HUFs who do not have business or professional income but have capital gains, income above ₹50 lakh, more than two house properties, foreign income or assets, unlisted shares, or are a company director or an NRI. The due date for AY 2026-27 is 31 July 2026.
Who should file ITR-2?
ITR-2 covers individuals and HUFs with richer income profiles — as long as there's no business or professional income.
Capital gains
Gains from shares, mutual funds, property or other assets — any type or amount beyond ITR-1's small-LTCG limit.
Income above ₹50 lakh
Total income for the year exceeds ₹50 lakh, with no business income.
More than two houses
Income from three or more house properties.
Foreign income or assets
Foreign income, assets held abroad, or signing authority in a foreign account.
Director or unlisted shares
You are a director in a company, or you hold unlisted equity shares.
NRI / RNOR & crypto
Non-residents with Indian income, and anyone reporting virtual digital assets (crypto).
Reporting capital gains
Sold shares, mutual funds or property this year? Those gains go in ITR-2's Schedule CG. The rates were revised by the Finance Act 2024 and apply across FY 2025-26.
STCG · Section 111A
Short-term gains on listed shares and equity mutual funds with STT.
LTCG · Section 112A
Long-term gains on listed equity above the ₹1.25 lakh annual exemption.
Other long-term gains
Such as property or unlisted assets, under the revised long-term rate.
For AY 2026-27, the earlier split of gains before and after 23 July 2024 is gone — a single set of rates applies. Estimate your tax in the calculator before you file.
ITR-1 → ITR-2 → ITR-3
ITR-2 is the middle ground — richer than Sahaj, but still without business income.
ITR-1 (Sahaj)
Salary up to ₹50 lakh, two houses, small LTCG only. Simpler — if you qualify.
See ITR-1 →ITR-2
Capital gains, income above ₹50 lakh, foreign assets, NRI — but no business income.
ITR-3
Add any business or professional income and you move to ITR-3.
See ITR-3 →What's new in ITR-2 for AY 2026-27
Single capital-gains rates
The split of gains before and after 23 July 2024 is removed — the revised rates apply for the whole year.
Crypto in Schedule VDA
Virtual digital asset gains are reported in Schedule VDA, taxed at a flat 30% under Section 115BBH.
Assets & liabilities
Schedule AL applies where total income crosses the prescribed threshold — report assets and liabilities.
Aadhaar number mandatory
The Aadhaar Enrolment ID is no longer accepted; quote your 12-digit Aadhaar number.
ITR-2 — FAQs
What is ITR-2?
ITR-2 is the income tax return for individuals and HUFs who do not have business or professional income but have capital gains, income above ₹50 lakh, more than two house properties, foreign income or assets, unlisted shares, or are a director or an NRI.
Who should file ITR-2?
Anyone with capital gains beyond ITR-1's small-LTCG limit, income over ₹50 lakh, three or more houses, foreign assets, a directorship, or NRI status — provided they have no business income.
Can an NRI file ITR-2?
Yes. NRIs and RNORs with taxable income in India but no business income commonly file ITR-2.
ITR-1 or ITR-2 — which one?
Use ITR-1 if you meet all its simple conditions. Move to ITR-2 once you have capital gains beyond the small-LTCG limit, income above ₹50 lakh, more than two houses, foreign assets, or a directorship.
Can I report crypto in ITR-2?
Yes. Gains from virtual digital assets are reported in Schedule VDA and taxed at a flat 30% under Section 115BBH.
What is the due date for ITR-2 for AY 2026-27?
31 July 2026 for individuals whose accounts do not require audit.
Capital gains or NRI return? We've got it
ITR-2 gets fiddly with capital-gains schedules and foreign income. Send your statements on WhatsApp — a Chartered Accountant computes your gains, picks the best regime, and files ITR-2 on time.
File my ITR-2 with a CAThis guide to ITR-2 is for AY 2026-27 (FY 2025-26) and is for general information only — not tax, legal or financial advice. Eligibility, capital-gains rates and conditions are governed by the Income-tax Act, 1961 and may change. Verify the correct form and tax treatment for your facts, or consult a Chartered Accountant, before filing.