Which ITR form is used for capital gains?

Individuals with capital gains and no business income commonly use ITR-2. If trading or another activity is treated as business income, ITR-3 may be needed.

Do I need to report mutual fund capital gains in ITR?

Yes. Mutual fund redemptions can create short-term or long-term capital gains or losses and should be reported in the correct ITR schedule.

Can AIS alone be used for capital gains filing?

No. AIS may show transaction values, but capital gains require cost, sale value, dates, expenses, indexation where applicable, exemptions and classification.

Reviewed for current filing season: 9 June 2026

Capital gains ITR filing guide for AY 2026-27

Capital gains can arise from sale of shares, mutual funds, property, bonds, gold, ESOPs and other capital assets. Filing correctly means using the right ITR form, reporting each asset category, reconciling AIS and broker data, and claiming exemptions only where eligible.

Quick answer: Capital gains without business income usually point to ITR-2. Frequent trading, F&O or business-style activity may require ITR-3.

Common capital gains situations

Listed equity shares and equity mutual funds.
Debt mutual funds, bonds and gold.
Sale of residential house, land or commercial property.
ESOP sale or foreign share sale.
Virtual digital assets, which have separate special tax treatment.

Examples

Salary plus mutual fund gains

A salaried taxpayer redeems equity mutual funds. ITR-2 is commonly reviewed, with Schedule CG and 112A details where applicable.

Property sold during the year

Sale consideration, cost, improvement cost, transfer expenses, indexation and exemption claims must be documented carefully.

F&O loss with salary

F&O is commonly treated as business income, so ITR-3, turnover and audit implications should be reviewed.

Documents to keep ready

Broker capital gains report and contract notes.
Mutual fund capital gains statement or CAS.
Property purchase deed, sale deed, improvement bills and expense proofs.
Form 26AS, AIS, TIS and TDS details.
Exemption investment proofs, if claiming eligible capital gains exemption.

Why AIS may not be enough

AIS may show a securities or property transaction, but the taxable gain depends on cost, holding period, transfer expenses, exemptions, special rates and losses. Always reconcile AIS with source statements before filing.