ITR2 filing for annual year 2025-26

ITR2 filing for annual year 2025-26

Hello Experts, I am an NRI living in Germany. During FY 2024-25, I earned LTCG from sale of property in India in February 2025. I’m opting for the new tax regime for lower tax rate (12.5% on LTCG without indexation) ensuring more TDS refund. I have few general queries regarding filing ITR2 for AY 2025-26:

1) When adding my bank accounts on the e-filing portal, the system asks for “account type” as a mandatory entry. For accounts relevant to NRIs, there is only an option for entering “Non-residential Ordinary (NRO)” account-type but no option for “Non-Residential External (NRE)” account-type. Since it is obligatory to provide the details of all my bank accounts maintained in India, how do I add the details of my NRE account?

2) The phone number linked with my Aadhaar & e-filing portal is the same, but the phone number linked with my bank is different. Both these numbers are however active. When I added my NRO account on the e-filing portal for refund, the number could not be verified as it is different from that linked with my bank. My NRO account was still validated on the e-filing portal with EVC enabled because my e-mail id is the same across all platforms. Is it necessary for the phone numbers to match for receiving refund on my NRO account? Will there be any hassles in submitting my ITR?

3) Does the “Cost of Acquisition” in the LTCG section only refer to the property purchase value?.. or can I enter here the total sum of the property purchase value, property registration cost and other brokerage & documentation costs incurred by me at the time of property purchase?

4) For the “Expenditure wholly & exclusively in connection with transfer” in the LTCG section, can I enter the total sum of lawyer-consultation fees, brokerage fees and documentation costs, which were incurred by me exclusively for my property sale?

5) In the LTCG section, where can I enter the total property tax paid to the municipality to reduce my capital gain?

Thanks in advance for your inputs.

Asked 2 days ago in Income Tax

1. In case of NRI, only NRO account can be added

2. If the A/c is enabled for refund on the basis of email matching then no need to worry

3. Assuming property was purchased after 01.04.2001. It includes Purchase cost as per sale deed, brokerage, advocate fees, registration charges, stamp duty charges, interest on housing loan if the benefit of interest is not otherwise claimed in the ITR. You can also claim cost of improvement of capital nature.

4. You can claim such expenses. Maintain the proofs of such payments in the form of receipt, invoice

For detailed discussion you may opt for phone consultation

Vivek Kumar Arora

CA, Delhi

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✅ 1. NRE Account Not Showing

Issue: Only NRO shown as account type.

Solution: Refunds can only go to NRO accounts. NRE accounts aren't eligible.
→ Add only your NRO account for refund purposes.

2. Phone Number Mismatch with Bank

Issue: Aadhaar/portal and bank have different phone numbers.

Solution: Since email ID matches and account is EVC-validated, refund will go through.
→ No issue, phone number mismatch won’t block refund.

3. Cost of Acquisition – What to Include

Allowed: Purchase price, stamp duty, registration, brokerage, legal fees, capital improvements, and interest on loan (if not claimed elsewhere).
→ Enter total of all these with proof.

4. Expenditure on Sale – What’s Allowed

Allowed: Sale-related expenses like broker fees, legal fees, documentation, etc.
→ Add them under ‘Expenditure in connection with transfer’, retain receipts.

5. Property Tax Deduction

Not Allowed under LTCG deduction.
→ Cannot be added to reduce capital gains.

Shubham Goyal

CA, Delhi

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It is obligatory to provide details of all bank accounts in income tax return and not obligatory to validate it on income tax portal.

Non-linking of phone with bank will only not allow you to e-verify return using EVC and not affect your refund.

You can enter total amount paid for purchasing the property and not just cost.

Yes you can enter but I am not sure whether lawyer fees will be allowed as transfer expense as you will have to prove that it was mandatory for transfer.

If you find above information helpful rate it 5, thank you

Naman Maloo

CA, Jaipur

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ITR2 filing for annual year 2025-26

✅ 1. NRE Account Not Showing Issue: Only NRO shown as account type. Solution: Refunds can only go to NRO accounts. NRE accounts aren't eligible.→ Add only your NRO account for refund purposes.

2. Phone Number Mismatch with Bank Issue: Aadhaar/portal and bank have different phone numbers. Solution: Since email ID matches and account is EVC-validated, refund will go through.→ No issue, phone number mismatch won’t block refund.

3. Cost of Acquisition – What to Include Allowed: Purchase price, stamp duty, registration, brokerage, legal fees, capital improvements, and interest on loan (if not claimed elsewhere).→ Enter total of all these with proof.