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

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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:

  1. Are others facing the same issue?

  2. Has anyone heard back from ITD/CBDT about a timeline for a fix?

  3. 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)

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

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%

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.

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)

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