Income Tax Department has launched a new Excel-based utility version of ITR-2 to make filing easier. This form is designed for individuals and Hindu Undivided Families (HUFs) who do not have any business or professional income. New financial year has begun, and with it, the tax filing season has also arrived. Now, taxpayers can file their Income Tax Return (ITR) for Assessment Year 2025-26 (FY 2024-25), like every year, this time also, this process is available in both online and offline modes.
What has changed in the ITR-2 filing process?
The Income Tax Department has launched a new Excel-based utility version of ITR-2 to make filing easier. This form is designed for individuals and Hindu Undivided Families (HUFs) who do not have any business or professional income.
The new update was released on March 25, 2025, and under this, the option of filing a revised return under section 139 (8A) has been given. That is, if the taxpayer realizes any mistake or wants to make any changes in their return, then now they can easily modify it. This change is especially beneficial for salaried employees, pensioners and non-business taxpayers.
Who can file ITR-2?
ITR-2 is for individuals whose annual income is more than Rs 50 lakh and who receive income from renting property, capital gains or from other sources. Apart from this, if you are a director of a company or an equity shareholder of an unlisted firm, then you have to fill ITR-2.
ITR-1 (Sahaj) vs ITR-2 – Which form is right for you?
If you are a salaried person and do not have any business or professional income, then it is important to choose the right ITR form. Usually, ITR-1 (Sahaj) and ITR-2 are the main options.
You can fill ITR-1 (Sahaj) if:
Your annual income is less than Rs 50 lakh.
Your income is only from salary, rent of one house, interest, dividend or pension.
It is necessary to fill ITR-2 if:
Your annual income is more than Rs 50 lakh.
You have capital gain (income from stock market, sale of property).
You have more than one house.
You are a director of a company or an unlisted shareholder.
You have any foreign property.
To make ITR filing easier, the Income Tax Department has made new changes in ITR-2, so that taxpayers can revise their returns and the filing process has become simpler than before. If your income is more than 50 lakhs or you earn from capital gains, then ITR-2 will be the right option for you. File your returns on time by choosing the correct form and avoid any mistakes.
Who is Eligible to File ITR-2 for AY 2025-26?
ITR-2 form is for individuals and HUF receiving income other than income from ‘Profits and Gains from Business or Profession’. Thus, individuals with income from the following sources are eligible to file Form ITR-2:
- Income from salary/pension
- Income from house property (income can be from more than one house property)
- Income from capital gains/loss on sale of investments/property (both short-term and long-term)
- Income from other sources (including winning from lottery, bets on racehorses and other legal means of gambling)
- Agricultural income of more than Rs 5,000
- Resident not ordinarily resident and a non-resident
The total income from the above sources may exceed Rs 50 lakh.
Further, if you are a Director of any company and an individual who has invested in unlisted equity shares of a company, you must file returns in ITR-2.
Who Cannot file ITR-2 for AY 2025-26?
Note – Taxpayers eligible to file ITR-1 can also file ITR-2. However, it is advisable to file using ITR-1 as long as they meet the eligibility criteria.
What is the Structure of ITR-2?
ITR-2 is divided into:
- Part A: General information
- Schedule S: Details of income from salaries
- Schedule HP: Details of income from house property
- Schedule CG: Computation of income under capital gains
- Schedule 112A- From the sale of equity share of a company or a unit of equity oriented fund /business trust on which STT is paid
- Schedule 115AD(1)(b)(iii) proviso- For non-residents -From the sale of equity share of a company or a unit of equity oriented fund/business trust on which STT is paid
- Schedule VDA – Income from Transfer of Virtual Digital Assets
- Schedule OS: Computation of income under income from other sources
- Schedule CYLA: Statement of income after set off of current year’s losses
- Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years
- Schedule CFL: Statement of losses to be carried forward to future years
- Schedule VIA: Statement of deductions (from total income) under Chapter VIA
- Schedule 80G: Statement of donations entitled for deduction under Section 80G
- Schedule 80GGA: Statement of donations for scientific research or rural development
- Schedule 80GGC: Statement of contribution made to political parties
- Schedule 80DD: Details of deduction in respect of maintenance including medical treatment of a dependent who is a person with disability
- Schedule AMT: Computation of Alternate Minimum Tax payable under Section 115JC
- Schedule AMTC: Computation of tax credit under Section 115JD
- Schedule SPI: Statement of income arising to spouse/minor child/son’s wife or any other person or association of persons to be included in the income of the assessee in Schedules-HP, CG and OS
- Schedule SI: Statement of income which is chargeable to tax at special rates
- Schedule EI: Details of exempt income
- Schedule PTI: Pass through income details from business trust or investment fund as per Section 115UA, 115UB
- Schedule FSI: Statement of income accruing or arising outside India
- Schedule TR: Details of taxes paid outside India
- Schedule FA: Details of Foreign Assets and income from any source outside India
- Schedule 5A: Statement of apportionment of income between spouses governed by Portuguese Civil Code
- Schedule AL: Asset and liability at the year-end (applicable in case the total income exceeds Rs 50 lakh)
- Schedule tax deferred on ESOP: Information of tax-deferred on ESOPS received from eligible start-ups referred to in Section 80-IAC
- Part B-TI: Computation of total income
- Part B-TTI: Computation of tax liability on total income
- Tax payments- Details of payment of advance tax and self-assessment tax
- Declaration by the taxpayer
- Details to be filled if a tax return preparer has prepared the return
What Documents do I Need to File ITR-2?
- If you have a salary income, you need Form 16 issued by your employer.
- If you have earned interest on fixed deposits or saving bank account and TDS has been deducted on the same, you need TDS certificates i.e., Form 16A issued by Deductors.
- You will need Form 26AS to verify TDS on salary as well as TDS other than salary. Form 26AS could be downloaded from the e-filing portal.
- If you are living in rented premises, you need rent paid receipts for the calculation of HRA (in case you have not submitted the same to your employer).
- If you have any capital gains transactions in shares, you will need a summary or profit / loss statement of capital gain transactions of shares or securities during a year, if any, for computation of capital gain.
- You will need your bank passbook, Fixed Deposit Receipts (FDRs) to calculate amount of interest income.
- If you have received rent from your rented house property, then you will need your tenant / local tax payment/interest on borrowed capital details (if any) to calculate income from house property.
- In case you want to claim any loss incurred during the current year, then you will need the relevant documents exhibiting the loss.
- In case you wish to claim the previous year’s loss, you will need a copy of ITR-V pertaining to the previous year, disclosing the said loss.
- You will also need documents or proofs for claiming tax saving deductions u/s 80C, 80D, 80G, and 80GG such as life and health insurance receipts, donation receipts, rent receipts, receipts for tuition fees etc., if the same were not considered in your Form 16.
The process to file ITR-2 for Assessment Year 2025-26 (Financial Year 2024-25) is primarily online. Here’s a step-by-step guide:
1. Determine if ITR-2 is Applicable to You:
- ITR-2 is for individuals and Hindu Undivided Families (HUFs) not having income from business or profession.
- You should file ITR-2 if your income includes:
- Salary or Pension exceeding ₹50 lakh.
- Income from more than one house property.
- Capital gains or losses from the sale of investments or property.
- Income from other sources (including winnings from lotteries, horse races, etc.).
- Agricultural income exceeding ₹5,000.
- Foreign income or assets.
- You are a director of a company.
- You hold shares in an unlisted company.
- You are a Resident Not Ordinarily Resident (RNOR) or a Non-Resident.
- If your total income is ₹50 lakh or less and you only have income from salary, one house property, pension, interest, and dividends, you should file ITR-1 (Sahaj).
2. Gather Necessary Documents:
- Form 16: Issued by your employer, detailing your salary and TDS.
- Form 16A: If you have income from sources other than salary (e.g., interest), and TDS has been deducted.
- Form 26AS: This statement shows the tax deducted at source (TDS) and tax collected at source (TCS) against your PAN. You can download it from the e-filing portal.
- Capital Gains Statements: If you have capital gains from the sale of shares, mutual funds, property, etc., you’ll need the details of these transactions (purchase date, sale date, cost of acquisition, sale price, etc.).
- Bank Statements/Passbooks: To calculate interest income.
- Investment Proofs: For claiming deductions under Chapter VI-A of the Income Tax Act (e.g., Section 80C for investments like PPF, insurance premiums; Section 80D for medical insurance; Section 80G for donations, etc.).
- Rent Receipts: If you are claiming House Rent Allowance (HRA) and haven’t submitted proofs to your employer.
- Details of Foreign Assets/Income: If applicable.
- Aadhaar Card: Linking your PAN with Aadhaar is recommended.
3. Choose a Filing Method:
- Online Mode: This is the most common method. You can file directly through the Income Tax e-filing portal.
- Offline Mode: This is available only for individuals aged 80 years or above, who can submit a physical paper return or use a bar-coded form.
4. Step-by-Step Online Filing Process:
- Step 1: Log in to the e-filing portal: Go to the official Income Tax e-filing website (https://www.incometax.gov.in/) and log in using your PAN as the user ID and your password. If you don’t have an account, you’ll need to register first.
- Step 2: Navigate to File Income Tax Return: After logging in, go to the ‘e-File’ menu, click on ‘Income Tax Returns,’ and then select ‘File Income Tax Return.
- Step 3: Select Assessment Year: Choose the Assessment Year as ‘2025-26.
- Step 4: Select Mode of Filing: Choose ‘Online’.
- Step 5: Select ITR Form: Choose ‘ITR-2’ from the dropdown menu.
- Step 6: Proceed with Filing: Click on ‘Proceed’. You might be asked if you know which ITR form to file; confirm that you do.
- Step 7: Fill in the Details: The ITR-2 form is divided into several schedules. You will need to fill in details related to:
- Part A: General Information: Personal details, contact information, etc.
- Schedule S: Income from Salary/Pension: Details from your Form 16.
- Schedule HP: Income from House Property: Details of income from all your house properties.
- Schedule CG: Capital Gains: Details of both short-term and long-term capital gains.
- Schedule OS: Income from Other Sources: Interest income, winnings, etc.
- Schedule CYLA: Current Year Loss Adjustment: If you have any losses to be set off.
- Schedule BFLA: Brought Forward Loss Adjustment: If you have losses from previous years to be set off.
- Schedule VIA: Deductions under Chapter VI-A: Details of your tax-saving investments and expenses.
- Schedule 80G/80GGA: Details of donations.
- Schedule FA: Details of Foreign Assets and Income: If applicable.
- Schedule AL: Asset and Liability at the end of the year: If your total income exceeds ₹50 lakh.
- Other relevant schedules as per your income sources.
- Step 8: Verify Pre-filled Data: Some information will be pre-filled based on your PAN and previous filings. Verify all the pre-filled details and make corrections if necessary.
- Step 9: Enter Income and Deduction Details: Fill in all the required information in the respective schedules. Ensure you have all the supporting documents handy.
- Step 10: Calculate Tax Liability: Once you have filled in all the income and deduction details, the system will automatically calculate your tax liability.
- Step 11: Pay Taxes (if applicable): If there is any tax payable, you will be redirected to the e-Pay Tax service. You can pay online through Net Banking, credit/debit card, UPI, etc.
- Step 12: Preview and Submit: After filling in all the details and paying taxes (if applicable), click on ‘Preview Return. Carefully review all the information you have entered. Once you are satisfied, click on ‘Proceed to Validation’.
- Step 13: Validate Your Return: If there are any errors, the system will highlight them. Correct the errors and re-validate.
- Step 14: Submit Your Return: After successful validation, click on ‘Proceed to e-Verification’.
- Step 15: e-Verify Your Return: You can e-verify your return through one of the following methods:
- Aadhaar OTP
- Net Banking
- Digital Signature Certificate (DSC)
- Electronic Verification Code (EVC) through pre-validated bank account or Demat account.
- You can also choose to verify later by sending a physical copy of ITR-V (Income Tax Return-Verification) to the Centralized Processing Centre (CPC), Bengaluru, within 30 days of filing. However, e-verification is the faster and preferred method.
5. Acknowledgement:
- Once your return is successfully e-verified, you will receive an acknowledgement message and an email with the details of your filed return. You can also download the acknowledgement receipt (ITR-V) from the e-filing portal.
Important Dates to Remember:
- The due date for filing ITR-2 for the financial year 2024-25 (Assessment Year 2025-26) for individuals and HUFs not requiring an audit is July 31, 2025.
- If you miss the deadline, you can file a belated return until December 31, 2025, but it may attract penalties and interest.
New Updates for AY 2025-26 (as of early April 2025):
- A new Excel utility for ITR-2 has been released (on March 25, 2025).
- The utility includes a feature to file revised returns under Section 139(8A). This allows you to easily rectify mistakes after filing.
It’s always recommended to file your Income Tax Return well before the due date to avoid any last-minute hassles. If you find the process complex, you can consider seeking assistance from a tax professional.