How to Report STCG on Shares in ITR-2 for AY 2025–26?

If you earned Short-Term Capital Gains (STCG) from selling shares or equity mutual funds in the financial year 2024–25, you need to report them accurately in ITR-2. The introduction of new tax rules under the Finance (No. 2) Bill, 2024, effective July 23, 2024, makes it especially important to understand how and where to report these gains.

This guide walks you through the entire process of reporting STCG in ITR-2.

Information You Must Collect Before Filing ITR for FY25

Prepare the following details from your demat account or broker statements:

• Date of sale of shares
• Date of purchase of shares
• Sale value (Full Value of Consideration)
• Purchase cost (Cost of Acquisition)
• Transfer expenses (e.g., brokerage)
• Dividend income (if any)

You must clearly segregate transactions based on whether they occurred:

• Before July 23, 2024
• On or after July 23, 2024

This distinction is mandatory in ITR-2 for Assessment Year 2025–26.

Read More: New July 23 Tax Rule Could Raise Your Capital Gains Bill: Here’s What Changed.

Step-by-Step Guide to Filing STCG in ITR-2

Step 1: Log in to the Income Tax Portal

• Visit: https://incometax.gov.in
• Log in using your PAN and password
• Check the following:
• Form 26AS for TDS
• Annual Information Statement (AIS) for income summary
• Ensure bank account is pre-validated
• Verify contact details are up to date

Step 2: Start Filing ITR-2

• Navigate to e-File → Income Tax Return → File Now
• Select ITR-2 as the form
• Choose Assessment Year 2025–26

Step 3: Select Applicable Schedules

• On the left-hand side, click on Income tab
• Select these relevant schedules:
• Schedule Capital Gains
• Proceed by clicking Continue and skip any irrelevant questions.

Step 4: Enter Details Under Schedule Capital Gains

• Go to the Return Summary section
• Select Schedule Capital Gains
• Under Short-Term Capital Gains, choose the following option:

“From the sale of equity shares or units of an equity-oriented mutual fund or business trust where STT is paid. Applies under Section 111A (for residents) and Section 115AD(1)(b)(ii) (for FIIs), where clause A3 is not applicable.”

• Click Add Another to enter new transactions.

Make sure to enter each group of transactions separately:

• One set before July 23, 2024
• One set on or after July 23, 2024

Include sale and purchase dates, amounts, and any associated costs.

Click Save after entering each transaction group.

Final Steps

Once you’ve entered all your capital gains information:

• Review your Return Summary
• Pay any outstanding tax dues
• Submit and verify your return

Read More: ITR Filing FY25: Is Capital Gain from Ancestral Property Taxable in India?

Conclusion

Reporting short-term capital gains (STCG) on shares in ITR-2 has become more nuanced in AY 2025–26 due to changes brought in by the Finance (No. 2) Bill, 2024. By keeping the July 23, 2024 cut-off in mind and entering your transactions with the correct classification, you can avoid errors and ensure smooth tax filing.

Always double-check your data and consult a tax advisor if needed, especially for complex portfolios or multiple asset classes.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.