Guide to efile Income Tax Return: ITR2, ITR3 and ITR5 for AY 2019-2020

Published: July 8, 2015 at 6:51 am

Last Updated on

This is a step by step guide to e-file AY 2019-2020 (FY 2018-2019)  income tax returns using forms ITR2, ITR3 and ITR5.  This is an updated version of the second part of a guest post by Aparna C K.  In the first part of the Guide to efile Income Tax Return For AY 2018-19  she covered, creating the efiling login and quick filing ITR-1. Now she now describes LTCG, STCG, carry forward and income from other sources sections of ITR-2 and ITR-3 and ITR-5 utilities. Please do share this post with people who are yet to file their returns.

Know which ITR you are supposed to file.

ITR 1For individuals being a resident other than not ordinarily resident having Income from Salaries, one house property, other sources (Interest etc.) and having total income upto Rs.50 lakh Salaried with no capital gains use this
ITR 2For Individuals and HUFs not having income from profits and gains of business or profession If are salaried with capital gains, this is the one for you
ITR 3For individuals and HUFs having income from profits and gains of business or profession
ITR 4For presumptive income from Business & Profession
ITR 5For persons other than:-  (i) Individual, (ii) HUF, (iii) Company and (iv) Person filing Form ITR-7
ITR 6For Companies other than companies claiming exemption under section 11
ITR 7For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or

For full details and explanation refer to Which ITR Form Should I use for A.Y. 2019-20?

a)If you have an income from just salary, house property and bank deposits (Savings, FD, RD, Flexi RD), it is ITR1 (total income up to 50 L)

b)If you have income specified in a) and income from selling Real Estate, Stocks, Mutual fund units, derivatives, gold etc, or you have withdrawn EPF/PPF, it is ITR2 (individual or HUF with no business income)

If in addition to the above, you (or HUF) have income from a business or proprietorship, ITR3

e) For people having a presumptive business, it is ITR4 (no capital gains allowed)

For all others, it is ITR5 (other than an individual)

Which schedules to use

ITR2 comes with multiple schedules (forms). For a resident Indian, the typical forms needed are:

Forms required for ITR2 AY 2019-2020


The most confusing part apparently is Schedule CG.

Capital Gains are broadly categorised into

A. Short Term Capital Gains (STCG) and

B. Long Term Capital Gains (LTCG).

Their definition depends on asset classes. Hence we will take up one by one as in the points in the ITR tab. The picture shows how the Java utility looks like. As and when you fill it up, please click on “Save Draft” in top.


Schedule CG of ITR2 AY 2019-2020-STCG

A1.  From the sale of land/building: If a real estate asset is sold within 2 years of acquisition, there are two things. Firstly, you do not get indexation benefit (cost adjusted to account for inflation) and absolute numbers will be considered. Secondly, you will be taxed as per your tax slab.

  • Enter the amount you received in ai.
  • Enter the “government guideline value” (as it is commonly termed as) in aii.
  • If aii is greater than ai, aii should be entered in aiii, else ai to be entered. For a full understanding of this, read this

Coming to deductions under section 48,

  • Enter the purchase value in bi, as per the sale deed, including all the legal expenses and interest paid on loan etc. For a detailed account of what can be included, refer this 
  • Cost of improvement, if it can be shown with documents in bii.
  • The cost involved exclusively (like a broker or legal fee), while selling, again, only if you have supporting documents, in biii
  • Deduction under 54B can be claimed in case of Agricultural land only. Details too long and can be found here.

Schedule CG of ITR2 AY 2019-2020-STCG from equity

A2. Equity shares or Equity Mutual fund units on which STT is paid (normally this is the case): If sold within a year of purchase, it is considered STCG. For equity, it is a special rate of 15%, it will be taken care of by the tool.

  • Enter the entire sale value in a.
  • Enter the cost of purchase, including brokerage if any, in bi
  • I don’t think the cost of the improvement is applicable in this case.
  • Enter brokerage value if applicable in biii.
  • Please ponder over d. If you sell and buy back units for the purpose of setting off the gain and within 3 months you receive additional units, then some portion of the loss is not considered for set off.
  1. Section 3 is skipped, as it is not applicable to Resident Individuals.
  2. Section 4 is skipped for the same reason as 3.

Schedule CG of ITR2 AY 2019-2020-STCG from other assets

A5. Assets other than 1,2,3,4: Other asset classes like Debt Mutual funds, Gold ETFs, NCDs or tax-free bonds, if sold within 3 years of purchase and Physical gold/e-Gold, if sold within 3 years of purchase. Follow the same steps as above.


Before looking at the various asset classes, let us understand what is indexation. Every year the govt of India publishes various inflation related numbers. List of inflation numbers published for computing LTCG, which is called Cost Inflation Index (CII) can be found here. This is how the numbers with indexations are computed.

Cost of purchase with indexation = Actual purchase value * CII of the year of transfer / CII of the year of purchase.  –  B(1)

Cost of improvement with indexation = Actual cost of improvement * CII of the year of transfer / CII of year of improvement – B(2)

Any other cost should be computed similarly.

LTCG (computed by the tool) = Full value of consideration – Cost of purchase with indexation – Cost of improvement with indexation – Cost involved in the transfer

Schedule CG of ITR2 AY 2019-2020 LTCG from sale of land or building

B1. Sale of Real Estate after 3 years:

  • Enter the values from ai to aiii as described in the point 1 of A STCG.
  • bi to biii is different from that of A, because here indexation benefits are available. Hence compute bi and bii according to B(1) and B(2).
  • Exemptions are available under many variants of section 54.  On a simple note, if it is agricultural land, it comes under section 54B. Otherwise, if you reinvest the gains in another house(54)/property(54F) or recognized bonds(54EC), the amount re-invested is subtracted from the net effective gains (not the absolute gains, indexed gains). Some FAQs answered here, and it is tabulated in the end of that page.
  • Enter the amount invested under the options available under variants of 54.
  • Remaining gains are taxed at 20%.

Schedule CG of ITR2 AY 2019-2020 LTCG from sale of bonds or debentures

B2. For bonds/debentures (not listed) etc sold after a year: Indexation benefits are not available and they are taxed at a flat rate of 20%. The deduction is available if the gains are re-invested under 54EC/54F.

Schedule CG of ITR2 AY 2019-2020 LTCG from sale of listed securities

B3. For listed securities, like tax-free bonds, NCDs etc sold after a year: Same as 2 above except that they are taxed at flat rate of 10%.

B4. For the sale of stocks and equity-oriented mutual funds.

Suppose you purchased stocks or mutual funds for one lakh on 4th Aug 2017. Enter this as the cost of acquisition. When you sold it, the value was, say three lakh. Enter this as the full value of consideration in two places: 4a and 4b – B2.
You need to know the value as on 31-1-2018. This is the “fair market value” according to section 55(2)(ac). Suppose this was two lakh. Enter this in 4b – B1.

Schedule CG of ITR2 AY 2019-2020 LTCG from sale of stocks or equity mutual funds

Now, the gain up to Jan 31st 2018 is tax-free. So the effective LTCG is 3L – 2L = 1L. This is shown in 4c. To this, the 1L tax-free threshold is to be applied. Hence 1l – 1l = 0 (4d). Other examples of LTCG calculation can be found here: Long Term Capital Gains Taxation from Equity: Examples (Budget 2018-2019) A video version is also available.

Join our 1300+ Facebook Group on Portfolio Management! Losing sleep over the markt crash? Don't! You can now reduce fear, doubt and uncertainty while investing for your financial goals! Sign up for our lectures on goal-based portfolio management and join our exclusive Facebook Community

Note: At the time of writing ITR2 appears to have a bug as shown below. The Excel utility works fine. So please check the calculation.

ITR2 AY 2019-2020 Bug in LTCG calculationAlso as pointed out by Manu Thrissur, if you have multiple entries with different purchase dates and having different values on 31-1-2018, it cannot be entered in the sheet! I hope this is corrected soon! Otherwise, some “manipulation” would be necessary to ensure the numbers come out “right”.

Update 19th July 2019 from Income Tax Dept: “Schedule 112A and 115AD(1)(iii) of long term capital gain are provided in the Income Tax Return software as per the Instructions to the Notified ITR form and based on taxpayer feedback. Taxpayers have an option to either enter the Scrip wise details of long term capital gains in Schedule 112A and 115AD(1)(iii) so that the correct values are populated in the CG Schedule or enter the self-calculated aggregate value of long term capital gains directly under respective items in schedule CG in terms with Sec 112A or 115AD(1)(iii) without entering scrip wise details. Taxpayers may exercise either option based on their convenience”.

Check for more details: Filing Equity LTCG in ITR2 (AY 2019-2020) is messy! Here is a way out!

Update 15th June 2019: Revised forms are now available  with this note: In case of long term capital gains (LTCG) arising on sale of equity shares or unit of equity oriented fund or unit of business trust on which STT is paid, separate computation of capital gains should be made for each scrip or units of mutual fund sold during the year and aggregated amount should be provided in item No. B4 (ITR 2)/B5( ITR 3) (in case of residents) or item No. B7 (ITR 2)/B8(ITR3)(in case of non-residents). The Utility has been updated and relevant validation rules are relaxed. Please download the latest utility available under Downloads. The updated utility of ITR-5 for the same change will be available shortly.

B5,6,7,8. is skipped, as it is not applicable to Resident Individuals

ITR2 Schedule CG Item B9

B9. For items not covered so far: For example, Debt funds, Gold ETFs sold after one year or physical gold/e-Gold sold after 3 years come under this category. You need to enter purchase value with indexation as per B(1). The system will take min (tax at 20% on gains with indexation benefit, tax at 10% on absolute gains) for the MFs/ETFs. For Physical gold/e-Gold, it will take 20% with indexation benefit.

ITR2 Schedule CG Item B10

B10. LTCG under 54/54b/54ec/54f/54GB/115F See more about this here

Please note that tax rates are mentioned above for understanding purposes, if all the numbers are entered correctly, the utility would correctly calculate the tax at applicable rates and set off against losses, wherever possible. It does not matter what is the source of gains/losses, as long as it is from a source whose gains are taxable.

ITR2 Capital Gains Set Off

B9. This section deals with setting short-term and long-term capital loss set off

Notes on capital gains set off:

1)      STCL can be set off against STCG or LTCG.

2)      LTCL can be set off against LTCG only.

3)      In case LTCL is from equity and equity-oriented MF, the LTCL cannot be set off, because LTCG from equity is not taxable. It is only fair that when the entire gains are ignored by taxman, the loss is also ignored.

For a detailed account on this, please refer to this.

Now go to schedule CFL, and fill the losses from earlier years

Schedule CFL: Carry forward of losses

The AY shown start from 2011-12 for AY 2019-20

ITR2 Schedule Carry Forward Losses

Schedule OS: Income from Other sources


ITR2 Schedule Income from other sources


  1. dividend: Taxable dividend from any entity other than domestic companies/MFs. Eg.: Dividend received from a Co-operative bank or a foreign company. (Thanks to Sundaram Anathakrishnan for pointing this out).
  2. Interest: This is gross of total Savings bank interest (to be shown as exempt under 80TTA of chapter VI A up to 10000), FD and RD accrued interest, interest on EPF member contribution (if withdrawn before 5 years), interest on money lent to non-close-relatives, interest on NCDs and bonds.
  3. Rental income from assets other than house property, because house property is covered in detail under Schedule HP.
  4. Others: Can be several sources as shown in the drop-down in the figure. One common thing is the member contribution component of EPF. Note here that you should not enter the full amount here, but just the taxable portion of the member contribution amount. The detailed note is presented under the section on Schedule SI below. Another common thing is if you opted to withdraw the EPS amount instead of getting a service certificate. This is possible if you were in service for less than 10 years. This amount should be entered as “Others” in the drop-down shown above. It will be taxed according to your tax slab.

Schedule SI: Special rates

ITR2 Schedule Special Rates

1. Tax on accumulated balance on recognised PF: When EPF is withdrawn before 5 years, it is taxed retrospectively. The company contribution and interest on that come under the head salaries of the year in which it is withdrawn, i.e. this year and to be entered in Schedule S tab. The member component (not the interest) comes under accumulated balance and it has to be taxed at the applicable tax rates of respective years. I think many options are provided (not just 10,20,30) so that the closest value can be chosen on the whole amount, in case the individual was on different slabs in the previous years. Also, in the last column here, one needs to enter the tax amount too, which is approximately equal to the tax rate * balance accumulated. Now the interest portion of the member contribution is added to the income under other sources in Schedule OS and taxed at the applicable tax rate of this year.

2 to 8 : Please cross verify entries in the greyed portion.

Schedule EI: Exempted income

ITR2 Schedule Exempt Income

  1. Interest: For example, interest from tax-free bonds, or interest portion of PPF/EPF if matured and withdrawn. EPF is not taxable only if withdrawn after 5 years of continuous service, and it is illegal to withdraw during a job change. Please do not enter Savings bank account’s interest here. It should be entered in 80TTA.
  2. Dividend: Dividend from equity shares or MF units held (Debt/Equity)
  3. Income from Agricultural land
  4. There can be several sources under this, and the total of all of it needs to be entered.
    1. Interest income up to 1500 on the deposit in the name of the minor child.
    2. If entire EPF corpus is withdrawn before the completion of 5 years, member contribution of EPF to the extent of other investments contributing to 80C. For example, say this year, you made about 1.25L investments which come under eligible options of 80C, of which 30L was to EPF, then only 5L out of your contribution is taxable, and 25L can be entered in point 5 of schedule EI. This is true for all the previous years’ member contribution. In summary, the taxable portion of member contribution of all the years should be added together and entered in 1d of Schedule OS and the non-taxable amount of all the years should be added and entered in point 5 of Schedule EI.

Schedule IT and Schedule TDS: Schedule TDS is similar to that of ITR-1. But unlike in ITR-1, there is a separate Schedule IT to enter Advance tax paid and Self-assessment tax.

Tabs Part – B TI and Part B TTI: Since ITR-2 onwards, there are a number of components to consider, these two tabs are exclusively kept for total income and tax on total income respectively. Bank details and refund, if any will appear in TTI. TTI tab is similar to “Taxes Paid and Verification” tab of ITR-1. One has to verify details here and submit.

My apologies for not covering Schedule HP, because I don’t have own house/home loan and hence I do not want to copy-paste from somewhere.

A note on ITR-4: It is a superset containing ITR-2, ITR-3 (Schedule IF for example) tabs and a few more tabs, Nature of Business, Balance Sheet, P & L, OI, QD and many more, but only a few are covered in this blog for brevity and due to lack of time. I am an engineer who started working on contract after I quit my company job. Hence I come under the self-employed professional category. Mine was relatively easier compared to how complicated it would get if most tabs in ITR-4 are applicable. Hence I think I am not qualified enough to write on entire ITR-4. I will summarise what I learnt in the following paragraphs.

Self-employed people are not eligible for many benefits, especially the absence of HRA component increases tax liability. There is a section 80GG, under which one can avail maximum 2000 rupees per month. If you are having a business other than profession where you provide employment, you can claim many items as in P & L sheet as expenses (if you have receipts), and tax is computed after deducting these.  An individual can only claim a few things like telephone connection, petrol, the internet if they are in an individual’s name and ideally, paid by own account and not from a spouse’s account.

Taxation: For professionals, the company which took them on contract cuts TDS at 10% and issues Form 16A instead of Form 16. Hence if the total taxable income crosses 10%, the individual has to pay advance tax every quarter of the financial year. Defaults can be paid as Self-assessment tax along with the interest. For self-employed businessmen, no TDS portion, they need to estimate the income and pay advance tax every quarter. Finally, during the ITR filing, they will claim the refund in case of excess tax paid.

This pretty much covers what I know and I will be happy to answer the questions on topics covered here.


I would like to thank Aparna for her extraordinary effort in preparing this guide.

Do share if you found this useful
Join our 1300+ Facebook Group on Portfolio Management! Do not lose sleep over your bleeding portfolio: Learn how to reduce fear, doubt and uncertainty while investing for financial goals! Sign up for our lectures on goal-based portfolio management and join our exclusive Facebook Community

Hate ads but would like to support the site? Subscribe to our ad-free newsletter and get beautifully formatted full articles delivered to your inbox!

About the Author

Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management. He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice.
He conducts free money management sessions for corporates and associations on the basis of money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association. For speaking engagements write to pattu [at] freefincal [dot] com

About freefincal & its content policy

Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. We operate in a non-profit manner. All revenue is used only for expenses and for the future growth of the site. Follow us on Google News
Freefincal serves more than one million readers a year (2.5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication.Freefincal does not publish any kind of paid articles, promotions or PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)

Connect with us on social media

Our Publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingThis book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.

Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want

Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a young earner

Your Ultimate Guide to Travel


This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when traveling, how traveling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download) 

Free Apps for your Android Phone

Comment Policy

Your thoughts are the driving force behind our work. We welcome criticism and differing opinions.Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and I reserve the right to delete the entire comment or remove the links before approving them.


      1. Hi Abh,
        Insurance income obtained as death benefit or upon maturity is tax free and it has to be entered under EI tab last row. Even if it is not the maturity amount, but surrender value, after paying 2 year premium (for LIC) or 5 year premiums (for ULIPS) it is tax free, so to be entered in EI tab.
        If it is surrendered before meeting the above criteria, then it is taxable and it has to be entered in Schedule OS, by selecting the Others in drop down (containing a lot of options, in row 1d) and mentioning the source details. It will attract the tax rate as per your slab I believe. Correct me if I am wrong

  1. Aparna,
    I have a query, Certain sites say that the STT paid for shares can be set off against the STCG.
    Is this true for when you are filing ITR2? Or is this true only for filling ITR4 (ie declaring the gains from shares as a business income)

    1. Dear Anonymus, STT is available as business expense if and only if the income from share sell is considered as business income. If the income is considered as STCG, STT is not available for set off as business expense.



  2. Ashal Jauhari, has the following response:
    Dear Anonymus, STT is available as business expense if and only if the income from share sell is considered as business income. If the income is considered as STCG, STT is not available for set off as business expense.



  3. Ashal Jauhari, has the following response:
    Dear Anonymus, STT is available as business expense if and only if the income from share sell is considered as business income. If the income is considered as STCG, STT is not available for set off as business expense.



  4. Thanks for the detailed information provided here.
    I still have a query.I would like to know where and how to fill in ITR-2 for the long term capital gains for company esop sold 5 years after exercising.

    1. Not sure if my reply is too late, as deadline is over yesterday, I didnt have access to pc, as yesterday was Karnataka bandh.
      Company ESOPs are treated the same way as equity shares capital gain, for Indian companies. You have not mentioned above if it is internationally listed shares or stocks listed in our stock exchanges. Here is a link providing the details on Indian ESOPs

      1. I have STCG for sale of unlisted company shares within 1 year and as per the tax bracket it is supposed to be taxed at 30%. However, I have tried filling ITR 2 in A2 and A4 but the tax shows at a lesser rate. Where do you fill in to get the 30% tax rate?

  5. Hi Boss, I have been paid for retrenchment and leave enmeshment as the company shuts down.
    so where to put this exemption in ITR -2

    1. If you leave the company or company shuts down, whatever you receive will be treated as salaries and they should issue form 16 including all of it. How to enter the form 16 details is explained above.

  6. I was formerly a NRI. Have returned last year on 1.2.2014 and hence have become a resident for FY 2014-20151) After my return, I have received Rs 60,000 due to some benefits which were paid and remitted subsequently by my former employer, sometime in April 2014 i.e. in the current Financial Year. I understand that this foreign income is tax-free for 3 years. Please confirm and kindly tell me where it has to be shown in ITR-2 form.2) In ITR-2 form, what income types are to be included in the single field INCOME FROM OTHER SOURCES? Should we add up all FD INTEREST+Savings Bank Interest+ TAX FREE bonds Exempt interest+STCG+LTCG and show all this in a single field and later show them also Separately in their respective fields under EXEMPT income etc? Please explain clearly & oblige.If possible please respond by email & oblige Thank you.

  7. I have a couple of queries on where & how to account for the followings:
    1. Maturity proceeds of Deep Discount Bonds (like ICICI's 1997 where the purchase value was Rs 4700 and maturity in 2017 would be Rs 50000 – if yearly accrued interest has not been accounted for earlier?
    2. Amounts received as a NOMINEE of someone in case of his/her death?


  9. Have question about Bank accounts ,
    -Do we have to include Post office accounts also?
    -Senior Citizen Saving account

    How to handle joint accounts
    -list al those on which I am first holder
    -or all those in which I also not the first holder

  10. Shouldn’t A5 and B7 be updated to reflect 1yr to 3yr?

    Also, a table which reflects exhaustive list of financial instruments (as much as possible, crowdsourced, updated) as rows, and corresponding STCG/LTCG timeframe (1yr/3yr) and tax treatment (bonus: ITR section) will be handy. For instance, unlisted bonds are mentioned in B2 but no corresponding in STCG section.

    Below is what I maintain but it’s not complete.

    Asset ST/LT Border Tax STCG STCG Section Tax LTCG LTCG Section
    Stocks and Equity MF 1 Year 15% 111A Nil 10 (38)
    Unlisted Bonds/NCDs 1 Year Slab Rate 20%
    Tax free/Corporate Bonds
    NCDs 1 Year Slab Rate 10% 112
    Debt/Global MF
    All Fund of Funds
    Gold ETF/Funds
    Bullion, Jewelry
    Real Estate 3 Year Slab Rate – 20% with indexation 112(1)

  11. I have one query like in the quarter (Apr~Jun’14) , I am on contract after that I regularize for the remaining quarters. so ITR I have to file?? and how ??

  12. How NRI having dividend income from Indian co &having STCG from Share can file ITR & What will be tax liablitity

  13. My all Income is from Salary. However I sold some shares after holding for 3 years and paid STT.
    Therefore LTCG is exempted. Do I have to show this in return? If yes which form is applicable ITR 2 or ITR 2A ?

    1. The word exempt means free from an obligation from doing something. In the case of income tax, Exempt income refers to income which though is earned and received during the financial year is not taxable. Certain type income can be exempted from tax provided certain conditions are met which are defined in Income Tax Act.
      Exempt income includes tax-free sources of income, such as the interest on PPF, tax-free bonds and dividends . The long-term capital gains from stocks and equity funds, the agricultural income and gifts from specified relatives.
      Even though these are tax-free, all exempt incomes must be mentioned in the tax return. Ignore this at your peril.
      Long Term capital gains on which Securities Transaction Tax has been paid comes under Exempt Income
      In ITR1 you can use row 26 in worksheet Taxes Paid and Verification
      26 Exempt Income only for Reporting Purpose (If agricultural income is more than Rs. 5000/-, use ITR-2 or 2A)

      In ITR2A or more you can use the Exempt Income Schedule

  14. Hello,
    Thanks for the useful post; i just have one question regarding LTCG, i have got the capital Gains statement from the fund houses and there are two separate columns – Capital gains with indexation and Capital Gains without indexation. Which one of these should be taken for the LTCG?

  15. Pattu sir, thank you for making this step by step guide for filing returns.
    For the first time i had filed my returns myself without any help.
    You are really doing a fantastic job.keep up the good work sir.

  16. I have the following query:

    During the period 1st April to 15th September2014, I have short-term capital gains of Rs. 30000/- from sale of equity shares and during the period 15th March to 31st March 2015, I have short-term capital loss of Rs. 10000/- so that the net short term capital gain is only Rs.20000/-. How to show this in Table-F of Schedule-CG of ITR-2, since the table does not accept negative values. As an example, consider the following situation

    In Schedule CG, item 2ia, one has to give the total value of consideration which will be the total consideration for the entire year, say 100,000/-. In items under 2ib, one has to give the value of aquisition, improvement, and expenditure, the sum of which is say, 120,000/-. So that the net gain is Rs.20000/-. which automatically appears in 3iii of BFLA. However, this gain of 20,000/- has arisen due to a gain of 30,000/- in the first quarter of year and a loss of 10,000/- in the last fortnight of March 2015. The gain data is also to be filled up in Table F in Schedule CG for each quarter. In the first quarter, we shall have to fill 30,000/-. The question is how to show the loss of 10,000/- in the last column of this table, since the table does not accept negative values. Thus, there will be a mismatch between the data in CYLA and the data in table F of CG and the sheet will not be validated.

    1. For the first quarter give figure as 20000 in table F, for the loss of last quarter give Zero as loss means zero gains . This loss of 10000 of last quarter has been subtracted from the gain of 30000 of first quarter to arrive at the figure of 20000 which we have filled for first quarter in table F .
      I have found this solution on my own, so please confirm from some tax professional.

      But I think I am not wrong

  17. Dear Sir,
    I have invested Rs 100000/- in FMP @ NAV = 10/- (Debt Mutual Fund) in march 2013 and redumption was done in April 2014 @ NAV=10.96/- (Two years for indexation FY 2012-13 to FY 2014-15). I have LTCG of 25160 from Shares (STT Paid) and Short term Capital LOSS of Rs 8100 (STT Paid). Please guide me
    1) How much tax i have to pay on the capital gains. OR
    2) If it is a loss, can it be carried forward.
    3) Where i can fill these in the ITR-2


    1. Just I want to add that the redemption are before the notification of new rules dated 10-07-2014 when more than one year was long term for debt mutual fund as well. And for this old rules will be applicable.

  18. Sir/ Mam
    Ancestral property which was purchased in 1962 was sold for 80 lacs in 2015. . Each 5 of us got 8 lacs . How to compute capital gain for each. How to find present cost of this property. How to save capital gain. Whole 8 lacs or only capital gain to be invested in order to save tax.

    1. How can five of you get just 8 lacs? It should be 16, if the sale value was 80.
      For present cost, I am not sure because indexation started in 1981.
      If the ancestral property was agricultural, I am not sure if you need to pay tax. Ashal might reply.

  19. I paid premium for equity based pension plan for 6 years (15000/- each) from year 2009. I surrenderd this policy in Nov 2014 and received 92000/-. Where to show this in ITR-2, is it under exempt Income? If so need to show 92000/- or 2000/- (profit)? Please let me know

  20. I want to enter RSU awarded to me by my company, but i am not able to enter in schedule FA, its all grey. Did i miss something?

    1. ITR 2 Part B TTI – point 15 – asks whether you held any foreign assets in the last 1 year. Say Yes to that and Schedule FA will be unlocked for editing.

  21. Hi,
    I was investing in an SIP Mutual fund back in 2010-2011 and redeemed all the units this year March. There was no investment done after 2011 – thus all should be long term capital gain.

    Where do I show this in ITR2 then? My thinking was that we don’t have to pay any tax on SIP Mutual funds if they are held for more than 3 years? Please let me know your thoughts.


  22. I have received hardship compensation from a builder in connection with redevelopment of my property. This is exempt income. Where do i mention it? Thanks

  23. Q: Form 26AS submitted by employer has the gross salary paid while in Schedule S the Income taxable under ‘Head Salaries’ is mentioned. The one in Sched S is after deductions u/s 10 and professional tax. This can lead to a warning by the IT Dept’s Java tool: The amount of salary disclosed in Income details/Part BTI is less than 90% of Salary reported in Sch TDS1.

    What do the experts here suggest? I know this was discussed in a site( but I wary of changing the TDS1 section to fit my bill.

  24. Nice information. I have a query. How to adjust LTCG and STCG against basic exemption limit? I have no income either from salary or other sources and the only income is from LTCG (~rS 20,000) and STCG (~Rs 40,000) from sale of shares where STT is paid. How to do it in ITR2 excel utility available in site.


  25. I have filled in Excel Utility for ITR2 for AY 2015-16 giving all the details.
    The tax at normal rates on 15 of Part B-T1 is showing 0(zero) and all taxes paid (Advance and Self Assessment) is showing as REFUND in 13.
    Please suggest how to rectify it.
    Early help please.

    1. I have filled in Excel Utility for ITR2 for AY 2015-16 giving all the details.
      The tax at normal rates on 15 of Part B-T1 is showing 0(zero) and all taxes paid (Advance and Self Assessment) is showing as REFUND in 13.
      Please suggest how to rectify it.
      Early help please.

  26. As the admin of this website is working, no question very shortly it will be well-known, due to its feature contents.

  27. Dear Pattu,
    Shall be glad if you could guide me on the following:-
    I have a lumpsum investment in a liquid fund with weekly dividend payout option. From this, fortnightly STP is being done to an equity fund. At the end of the financial year the liquid fund shows a capital loss (Short Term) as per statement obtained from CAMS. How do I treat this loss while filing returns and also how do I ensure that I do not violate sec 94(7) regarding Dividend stripping.

  28. Dear Pattu Sir

    I am an NRI working in UAE, have made short term capital gain of Rs.7Lakhs during the financial year 2015-2016, through sale of shares (the same amount has been reinvested via buying of other shares) and also TDS was deducted at 15% by Axis Bank in my PIS A/c.

    Since i don’t have any other income from India. What would be the tax implications when i filing the tax returns? Please advise..

  29. I havre read your article and thanks for it. I am trying to file ITR$ for myself this year AS 2016-17. I am getting this error while trying to generate XML sheet “Ensure that the total of values in Table f(1) in sheet CG for STCG 15% is equal to item 3iii of schedule BFLA ” But in BFLA, this amount has been entered by the system itself. What am I missing? Pls guide.

  30. Hello Ajoy,
    Did you get a way to enter STCG on unlisted company shares. I am also facing the same issue where the tax is not accounted for 30% in ITR2 form. If you got a solution please let me know.

  31. Hi, I was struggling with this cryptic error as well. Go down to the bottom of the CG Sheet and fill the last set of cells. For instance if your STCG @ 15% is Rs. 25,000 fill the same in the four cells (for 4 periods mentioned) of Item 1 so that the total of the 4 periods is Rs. 25,000. I just filled up the full amount in the last column “16/3 to 31/3 (iv)”.

    Hope this helps.

  32. The article is exhaustive and very useful. I have one problem with uploading my XML file. When I tried uploading XML file it was rejected stating that there is invalid content on a line which relates to bank account details. On further scrutiny, I found that the system refers to row 69 of the utility file- sheet PARTB-TI-TII. This row is hidden. How to proceed

  33. Although I had not sold any property but, while filing my ITR-2, the JAVA utility is giving me
    validation error in TDS tab in TDS3 field as ‘Enter the PAN of the buyer’ and ‘Name of the buyer’. Please let me know if I had done any mistake while filing or any one else had also got this kind of error.

  34. I have a question regarding Section F of ‘Capital Gains (CG)’ sheet. There are four columns, based on date. Does that mean I should check which month the capital gains is applicable?

  35. Calculate Tax tab is only on online efiling. I am filling ITR-2 offline (online option is only for ITR-1 and ITR-4) but don’t know how to validate through system and then convert to XML and then login and submit online. Could somebody please explain the steps. I am not savvy anout Java, XML etc.

  36. I realized that the capital gains should be filled for every quarter. The reason is that if the advance tax should be paid for every quarter. If the tax liability is more than 10K per year excluding TDS, then advance tax should be paid.

  37. I have sold shares of company X after 1 year and STT is paid. Should I fill ITR 1 and show this income under exempted income section in ITR1. Or should I fill ITR2. Pls clarify

  38. Hi, I am using the excel utility for preparing ITR2 . I am getting an error ”Schedule TTI : check for financial interests / assets out of India should be filled ‘ . I have already filled up the relevant sheets. Can someone please help me understand the reason of this error message ?

  39. Schedule CG has section F (Information about accrual/receipt of capital gain), it is required to give capital gains values for
    Upto 15/6 (i): Say I have nil
    16/6 to 15/9 (ii): Say I have 20,000
    16/9 to 15/12 (iii): Say I have 35,000
    16/12 to 15/3 (iv): Say I have 40,000
    16/3 to 31/3 (v):Say I have loss of 30,000

    Since negative values are not accepted for the above, shall I reduce the positive values over the three time periods earlier to arrive at total CG of 65,000?
    Say, shall I report 0, 10000, 25000, 30000, 0 respectively in section F?

  40. I recently (before 31 march 2019) withdrew EPF & pension (private service). Even though I had completed 5+ years of service, EPFO had the dates wrong, as a result of which I received EPF after 10% TDS. Also the pension received was less than what I should have got (coz of the wrong date). Have been following up with them for past 3 months. they have changed the date at one place, but the date change has not cascaded across their systems. As a result it may take another year to get this sorted. My query is from taxation and efiling perspective. Where do (which sections) I fill the EPF and Pension proceeds as I would like to get the 10% TDS (TDS not yet reflected on 26AS) back ? Thanks You.

  41. Hello,
    In case of LTCG from sale of property, where in exemption has been claimed U/s 54 –
    In TDS tab, while claiming TDS for the same what would be the corresponding gross income (column 11 of TDS from form 16B issued) As the file does not accept corresponding gross income as zero or any number less than TDS. Do we have to mention Capital Gains amount before exemptions.
    Please guide.

  42. Hello ,
    Very nice article. I have few questions related to EPF. Kindly clarify. I am not in service since Apr 2018, as i understand the interested earned on EPF is taxable if there is no contribution.
    1. in ITR2, under which section i need to show interest earned on employee and employer contribution
    2. I am planning to withdraw EPF after 5 years, is it a good idea to pay tax on interest earned at respective years till i withdraw or pay all the taxes only at the time of withdraw.
    Appreciate your inputs

  43. Hi,

    Wanted clarity on a couple of things… It says “sale of real estate” after 3 years qualifies for LTCG. I think it is now 2 years and not 3.
    Also another point being, now LTCG from Equity and equity MF is taxable, hence the gains can be offset against losses.
    Im not sure whether I was reading the older article and hence it showed these statements/figures.

  44. I have filled up all sheets correctly in ITR 2 for AY 2019-20. However, when I try to Validate or Calculate Tax, it says ‘Schedule TTI – ‘Check for Financial Interests / Assets out of India should be filled.” I am Resident Indian and do not have any interests or assets outside India. Where to check to resolve this issue.
    pl help immediately

  45. Thanks for the detailed article.

    Can you please share how the details entered in Sec 112A of ITR2 form (updated) will impact the overall LTCG calculations?

  46. Update 19th July 2019: Schedule 112A and 115AD(1)(iii) of long term capital gain are provided in the Income Tax Return software as per the Instructions to the Notified ITR form and based on taxpayer feedback. Taxpayers have an option to either enter the Scrip wise details of long term capital gains in Schedule 112A and 115AD(1)(iii) so that the correct values are populated in the CG Schedule or enter the self-calculated aggregate value of long term capital gains directly under respective items in schedule CG in terms with Sec 112A or 115AD(1)(iii) without entering scripwise details. Taxpayers may exercise either option based on their convenience.

  47. Sir haven’t gone through the whole comment chain yet so apologies but is the below text of the article accurate –

    In case LTCL is from equity and equity-oriented MF, the LTCL cannot be set off, because LTCG from equity is not taxable. It is only fair that when the entire gains are ignored by taxman, the loss is also ignored.

  48. I received house property from father with gift deed. Where to report it in ITR-2 and is there any tax incidence? Is there any sample available?

  49. Sir iam filing ITR2, my STCG for FY 8200( PROFIT= 20000, LOSS- 11800). During filing we need to submit the quterly STCG details (under table F(1) of CG schedule)I made profit of 20000 in 1st 3 quarters and loss of 11800 in quarter4 final gain is 8200 only.But table F(1) is not accepting negative values so my profit becomes 20000 for FY. Please suggest me to fill the form thanking you sir.

    1. Hi Ram,
      Unfortunately its a bug till date and u have to manually adjust data by spreading in all 4-5 qtr and show it aggregate of 20K


  50. Pattu Sir ,

    LTCG for real estate is now applicable at 2 years and not 3 years.
    The STCG and LTCG section above refer to 3 years as time period.

    Please refer note “With effect from A.Y. 2018-19, period of holding to be considered as 24 months in instead of 36 months in case of immovable property being land or building or both”

  51. Sir how to calculate and enter STCG from ESOP and itr filling?nowhere mentioned which form to fill and how to fill?

  52. you’re in reality a good webmaster. The site loading speed is amazing. It kind of feels that you are doing any distinctive trick. Also, The contents are masterpiece. you’ve done a great job in this topic!|

Leave a Reply

Your email address will not be published. Required fields are marked *