Which ITR form do I use after selling a flat?

Most individuals selling property without a business use ITR-2. With business/professional income (e.g. a developer), use ITR-3 instead. Either way, fill in Schedule CG. ITR-2: capital gains, no business/professional income ITR-3: capital gains AND business/professional income Both need Schedule CG: dates, consideration, cost, exemptions claimed, resulting gain ITR-1 (Sahaj) cannot be used if you have any capital gains

Can I use ITR-1 if I sold property?

Most individuals selling property without a business use ITR-2. With business/professional income (e.g. a developer), use ITR-3 instead. Either way, fill in Schedule CG. ITR-2: capital gains, no business/professional income ITR-3: capital gains AND business/professional income Both need Schedule CG: dates, consideration, cost, exemptions claimed, resulting gain ITR-1 (Sahaj) cannot be used if you have any capital gains

CAPGAIN › Answers › Capital gains & TDS on property › Which ITR Form Do I File If I Sold Property This Year?

Which ITR Form Do I File If I Sold Property This Year?

Short answer: Most individuals selling property without a business use ITR-2. With business/professional income (e.g. a developer), use ITR-3 instead. Either way, fill in Schedule CG.

Law: ITR-2 / ITR-3 · Authority: CBDT · Status: in force · Checked 25 Sept 2026

What you need to know

ITR-2: capital gains, no business/professional income
ITR-3: capital gains AND business/professional income
Both need Schedule CG: dates, consideration, cost, exemptions claimed, resulting gain
ITR-1 (Sahaj) cannot be used if you have any capital gains

Who this applies to: sellers, CAs

Official / primary source: incometax.gov.in (government source)

The law behind it

ITR-2 / ITR-3 Schedule CG - Reporting Capital Gains on Property

Report a property sale in Schedule CG of ITR-2 (no business income) or ITR-3 (with business/professional income, e.g. developers). For FY2024-25 returns, gains had to be split into pre- and post-23-Jul-2024 periods because the rate changed mid-year.

Schedule CG, ITR-2 and ITR-3 · in force · source

ITR-2 - reporting property capital gains and house-property income

Individuals/HUFs who sold property during the year, or who earn rental income from more than one house property, generally file ITR-2 (unless they also have business/professional income, in which case ITR-3 applies). Schedule CG captures the capital gain computation (sale price, cost, indexation/exemptions), and Schedule HP captures rental income and home-loan interest deduction.

ITR-2, Schedule CG and Schedule HP · in force · source

ITR-3 - for developers, agents and professionals with property income

Individuals/HUFs who run a business or profession - including real estate agents, small developers, or anyone with income from a proprietorship - and who also have capital gains or house-property income must file ITR-3, not ITR-2. It combines business/professional income (profit and loss account, balance sheet) with the same Schedule CG and Schedule HP used in ITR-2.

ITR-3 · in force · source

Work out your own numbers

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