ITR-2 Filing Blocked – BFLA Schedule Bug in Both Online & Excel Utility

Others 701 views 4 replies

Ram K

Engineer

8 Points Posted on 30 August 2025

Has anyone else faced this issue while filing ITR-2?

I have short-term capital gains under Section 111A (15%) from sale of equity MF (STT paid).
In the Capital Gains schedule, the amount correctly appears under 111A (15%).
But in Schedule BFLA, the system wrongly maps it under 3iiib – STCG u/20**%** instead of 3iiia – STCG u/15%.
Since BFLA is auto-populated and not editable, I get a validation error because totals between CG and BFLA do not match.
Same issue happens for some other capital gain categories too.

I raised grievances for both online filing utility and Excel utility. Sadly, the bug exists in both, so I am stuck and cannot submit my return. I am losing time switching between utilities.

This is very frustrating, and if not fixed quickly, it may delay filings for many taxpayers.

Questions for the community:

Are others facing the same issue?
Has anyone heard back from ITD/CBDT about a timeline for a fix?
Any reliable workaround?

Would appreciate if others can also raise this so it gets priority. This bug is serious because it could block or misreport capital gains for a large number of filers.

Replies (4)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211724 Points Posted on 30 August 2025

We are not facing any such issue in Java offline utility ver. 1.2.2 released on 25.08.2025.

Ram K

Engineer

8 Points Posted on 31 August 2025

thank you.

The issue was resolved after I reapplied using this rather complex table.. Hopefully the tax department makes it easier next time.

Fund Type	Gain Type	Purchased Before Apr 1, 2023	Sold Before July 23, 2024	Holding Period	Tax Rate
Debt	STCG	Yes/No	Yes/No	Any	Taxed at applicable slab rates
Debt	LTCG	Yes	Yes	More than 36 months	20% with indexation
Debt	LTCG	Yes	No	More than 24 months	12.5% without indexation

Equity	STCG	Any	Before July 23, 2024	Less than 12 months	15% flat
Equity	STCG	Any	On or after July 23, 2024	Less than 12 months	20%
Equity	LTCG	Any	Before July 23, 2024	More than 12 months	10%
Equity	LTCG	Any	On or after July 23, 2024	More than 12 months	12.5%

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211724 Points Posted on 31 August 2025

Happy to learn that the issue was resolved. This year there are more complex bifurcations in the calculation hence the issue had arose which could have been resolved by time period.

Next year it will be simpler; so such issue may not arise.

Tax Garden

Tax Consultant

887 Points Posted on 03 June 2026

This is a known bug in the current version of the ITR-2 utility (both Excel and online). The STCG under Section 111A at 15% is incorrectly mapped to the 20% bucket in Schedule BFLA.

Three workarounds being used while waiting for an updated utility:

Option 1: Use the offline Excel utility, complete all schedules, then export the JSON file. Open a fresh copy of the Excel utility, import the JSON file, and re-verify Schedule BFLA. Some users have found this import resets the auto-population correctly.

Option 2: If the total STCG under Section 111A after set-off against STCL is zero (fully offset by losses), leave Schedule BFLA as-is. If it remains populated in the wrong bucket, proceed and note the discrepancy if queried during any scrutiny.

Option 3: Wait for the updated utility. CBDT typically patches utility bugs within 2 to 3 weeks of them being widely reported. The May 29 release (version 1.1.0) did not fix this specific issue.

Do not rush to file if the utility is blocking you. There is no late fee penalty until after July 31 for most non-audit cases, so waiting for a corrected utility is safer than filing with a known validation error.

For the capital gains computation that feeds into Schedule BFLA: [capital gains tax guide for AY 2026-27](https://taxgarden.in/blog/capital-gains-tax-india-ltcg-stcg-ay-2026-27)