How to File ITR 2 Form Online with Capital Gains

For all taxpayers in India, filing an income tax return is compulsory. If you incurred any sort of capital gains during the last financial year, you will have to file an ITR-2. So, how to file ITR 2, you may wonder?

Simply, this form is to be filled by individuals as well as Hindu undivided families who receive an income from capital gains, house property, or other sources. While this can seem like quite a task, it is essential and you can do it easily by following the proper steps. Now, the next question that may come to your mind is how to file ITR-2 online.

Gather the necessary documents 

The very first step that you need to do before filing an ITR 2 form is to have all the necessary documents. Form 16 is the first document that you need that gets issued by employers. It contains all the details about your salary and also has information like TDS is deducted from the salary. 

Next, you require form 26AS which is an official statement about the TDS deducted from your income. Moreover, the form depicts the details of advance task self-assessment tax paid by an individual. Provide all the bank statements for the financial year for which you are filling out the ITR-2 form. 

Moreover, fill out the details of capital gains that you earned during the financial year through all sources. From the sale of property and stocks to mutual funds, mention everything here. Keep the investment documents ready like Form 16A, dividend certificates, and interest certificates. 

Now, here is how you can how to file ITR 2 online:

Download the ITR Form

• After checking all the documents, the next step is to download the ITR form. For this, you need to visit the income tax department’s official website and download the form. Also, you can download the form from the e-portal. 
• When you start filling out the ITR-2 form, ensure that you fill in your personal details like Permanent Account Number (PAN), address, name and other details. Next comes the income details. Here you need to fill in details about all sources of your income. Any sort of capital gains needs to be mentioned here. 
• Taxes Paid is the next section where you need to fill in the details regarding the TDS deduction on your income. It may be an advance tax or self-assessment tax that you pay. Provide the details of the deductions that got claimed by an individual under multiple sections of the income tax act. 
• After filling out all these details, the next thing you need to do is compute your tax liability. There is a tax calculator where you can complete this step. Visit the official website of the income tax department and access this calculator. There are other calculators for the same purpose available as well on various websites. 
• After getting this step done, the next thing you need to do is to verify your ITR-2 form. For this, you can verify electronically or in person, whichever seems feasible to you. 
• Lastly, you need to submit the ITR-2 form after verifying it. Log in to the e-filing portal and submit the form online by uploading it. 

Things to Keep in Mind

Filling out the ITR form can be a hectic task. One needs to be careful while filling out the details. Here are some things to keep in mind before you fill out the ITR-2 form: 

New vs Old Tax Regime

You may be aware that the government has proposed a new optional tax regime in the budget 2020. This means that taxpayers have the option to choose from the two tax regimes. While the new regime comes with a lower rate, the taxpayer will still be eligible for the deductions and exemptions that were under the old tax regime. 

At the beginning of the year, taxpayers get an option to choose between the new and the old tax regime. Compare both tax regimes and see which one is more beneficial for you. Salaried individuals can change this tax regime every year but businessmen can only choose the regime once. 

Extension of Dates

The revised date for filing an ITR is now extended till 30th September. Keep in mind that this does not mean that individuals will get any relief from tax liability. It is always a good idea to file the ITR and pay the tax as soon as possible. Section 243C, the penal interest gets applicable if the taxpayer does not deposit advance tax. However, senior citizens who do not have a business income are exempted from this law.

Updated Tax Forms

The tax department announces any changes in the tax forms every year. Before you select the ITR form, go through them once to ensure that you are selecting the right one. Keep an eye out for the changes that are made in the forms. 

Deductions

There may be cases where it slips out of your mind to submit proof of investments like health insurance or life insurance. If you are worrying that you paid the tax but forgot to attach the documents, you can still claim the deductions while filing the ITR. 

Precautions to take

While filing the ITR, see to it that you pre-validated your account where you wish to get your refund. If you are not choosing the correct ITR, it may get treated as defective. In such cases, you will need to file an ITR again with the correct details. Follow the specific timelines for filing tax returns and do not wait for the end moment. Verify your return easily as you can do so now electronically too. 

Final Words 

In this article, we discussed how to fill ITR 2 capital gains. You can fill out the ITR-2 form offline or online, however, you wish. While the process may seem complex, you will get a gist of it once you start doing it regularly. Do your research properly and seek professional help, if necessary. Avoid mistakes while filling out the details as they may prove to be harmful to you in the long run. 

Disclaimer

The investment options and stocks mentioned here are not recommendations. Please go through your own due diligence and conduct thorough research before investing. Investment in the securities market is subject to market risks. Please read the Risk Disclosure documents carefully before investing. Past performance of instruments/securities does not indicate their future performance. Due to the price fluctuation risk and the market risk, there is no guarantee that your personal investment objectives will be achieved.