INCOME TAX PORTAL BREAKING: Income Tax Return Form of ITR-2 is now enabled for filing through online mode with pre-filled data at the e-filing portal.

Great news for taxpayers! The Income Tax Department has indeed enabled the online filing for ITR-2 forms with pre-filled data on the e-filing portal for Assessment Year 2025-26. This was confirmed by the Income Tax India’s official X (formerly Twitter) account on July 18, 2025.

This is a significant development, particularly for salaried taxpayers and investors who do not have business or professional income but earn from sources like salary, capital gains, foreign assets, or digital assets. The move comes just weeks after the Income Tax Department extended the return deadline to September 15, 2025, for non-audit taxpayers due to recent legislative changes under the Finance Act 2024.

Key points to note:

  • Online Filing with Pre-filled Data: Taxpayers can now directly submit their ITR-2 forms through the official e-filing portal with much of their data already pre-filled.
  • Assessment Year 2025-26: This is for the financial year 2024-25.
  • Target Audience: ITR-2 is for individuals and Hindu Undivided Families (HUFs) who do not have business or professional income. This includes those with income from salary, capital gains, foreign assets, or virtual digital assets like crypto.
  • Changes in ITR-2: The form incorporates several changes for AY 2025-26, including:
    • Reporting capital losses from company share buybacks under Schedule CG (if corresponding dividend income is disclosed).
    • New row for dividend income from share buybacks under Section 2(22)(f).
    • Separate declaration of acquisition and improvement costs for land/buildings based on transaction date (before/after July 23, 2024).
    • Increased asset and liability disclosure threshold: now required for those earning above ₹1 crore annually (up from ₹50 lakh).
    • Separate columns for capital gains before and after July 23, 2024, to apply correct tax rates.
    • New field in TDS schedule for specifying the section code under which tax was deducted.
    • More detailed disclosure requirements for various deductions (e.g., Section 80C, 24(b) for home loan interest, HRA).

While the online functionality for ITR-2 is now live, ITR-3 (for those with business or professional income) is still primarily limited to offline Excel utilities, with online pre-filled functionality still pending.

Taxpayers are advised to ensure their PAN and Aadhaar are linked, and to pre-validate at least one bank account for refunds to ensure a smooth filing process.