Archive · 2 Aug 2025
ITR-2 Glitch Causes Errors in Capital Gains and Losses
The ITR-2 online system, used for filing taxes, has a glitch that can mess up how it handles money you made or lost from investments.
When you sell something like stocks, you might have a gain (profit) or a loss.
This system isn't correctly showing the losses carried over from previous years after they've been used to offset gains.
This means your tax return might be wrong, potentially leading to the tax department flagging your return, asking for corrections, or even rejecting it.
The tax department is aware of this issue and working on fixing it.
A glitch in the ITR-2 online utility is causing errors in capital gains and loss adjustments.
The error results in an inconsistency between the Brought Forward Loss Adjustment (BFLA) and Carry Forward Loss (CFL) schedules.
The CFL schedule incorrectly shows carried forward loss after the loss has already been adjusted.
Experts warn that this glitch could lead to incorrect loss carry-forwards and tax return issues.
The Income Tax Department has acknowledged the issue and stated that they are looking into it.
- Who
- Taxpayers using the ITR-2 utility, tax professionals, and the Income Tax Department.
- What
- A glitch in the ITR-2 online utility related to capital gains and loss adjustments.
- When
- The issue was flagged on July 28, 2025, and the exact time frame of the glitch's existence is not specified.
- Where
- The glitch affects the online ITR-2 utility in India.
- Why
- The glitch causes errors in capital gains and loss adjustments, potentially leading to incorrect tax calculations, return rejections, and increased compliance burdens for taxpayers.
Taxpayers
Income Tax Department
Compliance Burdens vs. Responsibility
Taxpayers
Taxpayers face increased compliance burdens and risk exposure due to the error.
Income Tax Department
Income Tax Department is responsible for fixing the error.
- Utility
- ITR-2
- Error Type
- Capital gains and loss adjustment
- Reported By
- Chartered Accountant Aditi Bhardwaj
- Affected Schedules
- Brought Forward Loss Adjustment (BFLA) and Carry Forward Loss (CFL)
- Potential Consequences
- Incorrect loss carry-forwards, return rejection, demand for clarification, rectification notices.
- Department Response
- Acknowledged the issue and is looking into it.