ITR 2 Filing With The RSUs: Step-by-Step Filing Process On The Income Tax Portal

Step 1: Log In to the e-Filing Portal

• Visit incometax.gov.in
• Log in using your PAN as User ID and your password
• Complete Aadhaar OTP verification if prompted

Step 2: Start a New ITR Filing

1. Navigate to e-File → Income Tax Returns → File Income Tax Return
2. Select Assessment Year: 2026-27
3. Choose Mode of Filing: Online
4. Click Start New Filing
5. Select Status: Individual

Step 3: Select ITR-2 Form

• If prompted with "Help me decide," answer the questions (capital gains income will lead you to ITR-2)
• Or directly select ITR-2 if you know it applies
• Click Proceed with ITR-2

Step 4: Choose Applicable Schedules

Select the schedules relevant to your income sources:

• Schedule S — Salary Income
• Schedule CG — Capital Gains
• Schedule OS — Other Sources (interest, dividends)
• Schedule FA — Foreign Assets (mandatory if RSUs are in a foreign company)
• Schedule AL — Assets & Liabilities (if total income > ₹50 lakh)

Step 5: Part A — General Information

• Verify pre-filled personal details (name, PAN, address, bank account)
• Select your Tax Regime: Old or New
• Confirm and proceed

Step 6: Schedule S — Salary Income

• Most details auto-populate from Form 16
• Verify that RSU perquisite value is included in "Value of Perquisites"
• Cross-check with your Form 16 Part B
• Claim exemptions (HRA, LTA) under Section 10 if applicable

Step 7: Schedule CG — Capital Gains (The RSU Section)

This is the most critical part for RSU holders.

For Listed Equity Shares (e.g., US stocks sold via broker):

Section B3: Short-Term Capital Gains (Section 111A)

• Full value of consideration — Total sale proceeds
• Cost of acquisition — FMV on vesting date × number of shares
• Expenditure on transfer — Brokerage, STT, other charges
• Net STCG — Auto-calculated

Section B7: Long-Term Capital Gains (Section 112A)

• Full value of consideration — Total sale proceeds
• Cost of acquisition — FMV on vesting date × number of shares
• Expenditure on transfer — Brokerage, STT, other charges
• Exemption u/s 112A — Up to ₹1.25 lakh is exempt
• Taxable LTCG — Auto-calculated

Tip: If you sold RSUs in multiple lots, enter each sale separately or aggregate by holding period category.

Step 8: Schedule FA — Foreign Assets (Mandatory for Foreign RSUs)

If your RSUs are in a foreign company (e.g., US-listed parent company), you must disclose:

• Country — e.g., United States
• Name of Entity — Your employer's parent company
• Account Number — Brokerage account number
• Nature of Asset — Equity Shares
• Date of Acquisition — Vesting date
• Initial Value — FMV in INR on vesting
• Peak Value — Highest value during the year
• Closing Value — Value as of 31st March

Failure to disclose foreign assets attracts a penalty of ₹10 lakh under the Black Money Act.

Step 9: Schedule OS — Other Sources

Report:

• Dividends received (from RSU shares or other investments)
• Interest income from savings accounts, FDs
• Any other miscellaneous income

Step 10: Part B — Deductions (Chapter VI-A)

Claim applicable deductions under the Old Regime:

• 80C — PPF, ELSS, life insurance, tuition fees (up to ₹1.5 lakh)
• 80D — Health insurance premium
• 80E — Education loan interest
• 80G — Donations
• 80TTA/80TTB — Savings account interest (up to ₹10,000)

Under the New Regime, most deductions are not available, but tax rates are lower.

Step 11: Schedule AL — Assets & Liabilities

Required if total income exceeds ₹50 lakh. Disclose:

• Immovable assets (property, land)
• Movable assets (jewellery, vehicles, bank balances, shares)
• Liabilities (loans)

Step 12: Tax Computation & Verification

• Review Part B — Total Income (TI) for the summary
• Review Part B — TTI for total tax liability
• Verify TDS from Form 26AS matches
• Pay any Self-Assessment Tax due via Challan 280 before proceeding

Step 13: Preview and Submit

• Click Preview Return to review all entries
• Validate the form — the portal flags errors
• Correct any discrepancies
• Click Proceed to Submission

Step 14: e-Verify Your Return

Verification is mandatory — an unverified return is treated as not filed. Options:

• Aadhaar OTP — OTP sent to Aadhaar-linked mobile
• Net Banking — Through your bank's e-filing link
• DSC — Digital Signature Certificate
• Physical ITR-V — Send signed copy to CPC Bengaluru within 30 days

Step 15: Download Acknowledgement

• After successful e-verification, download the ITR-V / Acknowledgement
• Store it safely for your records
• Confirmation is also sent to your registered email and mobile

Disclaimer: This article is authored by Artha Solution. The content, views and opinions expressed are solely those of Artha Solution and FinSafe shall not be liable for any information, interpretations, or decisions arising from its use.