To make income tax filing simpler, the Indian government classifies taxpayers based on their income type and amount. One such form is ITR-2, designed for individuals and Hindu Undivided Families (HUFs) who are not involved in any business or professional activity.
Form ITR-2 is ideal for people earning income through salary, rent, capital gains, agricultural income above Rs. 5,000, and other sources. It is also suitable for those with income from foreign assets or investments. However, if your capital gains fall under Section 112A and stay within Rs. 1.25 lakh, you may be eligible to file ITR-1 instead, as it's more straightforward.
In this article, you’ll find detailed information about Form ITR-2—who should use it, key changes introduced for the current assessment year, and how to file it correctly. Whether you’re a salaried individual, a landlord, or someone with multiple income sources, this guide is here to help.
What is the ITR 2 Form?
Form ITR-2 is meant for individuals and HUFs who are not earning income from any business or professional activity. This form is used when ITR-1 is not suitable due to additional income sources. If you have income from capital gains, own foreign assets, or receive agricultural income of more than Rs. 5,000, this is the correct form to file. It also applies if you earn income through lottery wins or betting. ITR-2 allows for reporting multiple income types while ensuring full compliance with tax laws, especially when the total income exceeds simple salary or pension earnings.
Due date for filing ITR 2 online FY 2024-25
The due date to file ITR-2 for the financial year 2024-25 (assessment year 2025-26) is 31st July 2025. In case of revisions, the extended deadline is 15th September 2025. The filing deadline usually falls on or before 31st July every year.
Financial Year |
Assessment Year |
Last Date to File |
2024-25 |
2025-26 |
31st July 2025 (15th Sept if revised) |
2023-24 |
2024-25 |
31st July 2024 |
2022-23 |
2023-24 |
31st July 2023 |
2021-22 |
2022-23 |
31st July 2022 |
Who should file ITR-2 for AY 2025-26 and AY 2024-25?
ITR-2 should be used by individuals and HUFs who do not have income from business or professional services. It is suitable if you receive:
- Salary or pension income
- Rental income from one or more house properties
- Capital gains from selling assets (short-term or long-term)
- Other taxable earnings like lottery winnings or race betting
- Agricultural income over Rs. 5,000
- Foreign income or are a non-resident or resident not ordinarily resident
Additionally, if your total income from these sources exceeds Rs. 50 lakh, you must use ITR-2. This form is also compulsory for company directors and individuals who have invested in unlisted equity shares of companies.
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Who cannot file ITR-2 for AY 2025-26 and AY 2024-25?
Individuals or HUFs earning income from business or professional activities cannot file ITR-2. Instead, they need to file using forms like ITR-3.
Also, if you qualify for ITR-1 (for simple salary or pension income), it is better to use that form for ease and simplicity. Even though ITR-2 is also technically permitted in such cases, it involves more detailed information and schedules, making it less convenient than ITR-1. Choosing the correct form is important to avoid mistakes or notices from the income tax department.
How to file ITR-2 for AY 2025-26 and AY 2024-25?
ITR-2 can be filed both manually and online. However, from the financial year (FY) 2017-18, if your income is more than Rs. 5 lakh, or you are seeking a refund, you must file your ITR electronically.
Here, we detail the steps involved in e-filing your ITR-2:
1. Download: Go to the Income Tax Department's official website. Navigate to the “Downloads” section, select "Offline Utilities" and then "Income Tax Return Preparation Utilities". Download the applicable ITR-2 form.
2. Prepare: Open the utility and start filling out the form. The utility will auto-calculate your tax as you fill in your data. Make sure to fill in all the mandatory fields.
3. Validate: After filling all the details, validate each section using the 'Validate' button. The 'Calculate Tax' button will show you the tax liability or the refund due, if any.
4. Generate XML: Once you have filled in the information and validated the form, generate an XML file by clicking on the 'Save Draft' button. This XML would be used for uploading the return.
5. Upload: Login to your profile on the official Income Tax e-filing website using your user ID (PAN), and password. Go to 'e-File' > 'Income Tax Return' and upload the generated XML.
6. Verify: After your return has been successfully uploaded, choose a mode of verification- by generating an “EVC using bank account details” or by using “Aadhaar OTP”. You can also send a signed physical copy of ITR-V (Acknowledgement receipt) to 'Centralised Processing Centre, Income Tax Department, Bengaluru - 560500' within 120 days of filing your return electronically.
7. E-verification: If you have opted for e-verification, you’ll get an OTP on your Aadhaar-linked mobile number. Enter this OTP when prompted to complete the verification process.
Please note that filing your ITR-2 online involves careful attention to detail to avoid any errors. All relevant documents and details should be kept handy.
Major changes in ITR-2 in AY 2025-26
Here are the latest changes made to ITR-2 for the assessment year 2025-26:
Change area |
Description |
Capital gains breakdown |
Gains must now be shown based on transfer dates—before or after 23rd July 2024. |
Buyback loss disclosure |
From 1st October 2024, losses from share buybacks can be claimed, but only if related dividend income is reported under "Other Income". A new section has been added to report these. |
Asset and liability reporting |
Only required if total income exceeds Rs. 1 crore (up from previous Rs. 50 lakh). |
Deduction details |
Clear item-wise disclosure needed for deductions like Section 80C and HRA (Section 10(13A)). |
TDS reporting |
TDS entries must now include the specific section under which tax was deducted for improved reconciliation. |
These changes improve transparency, better align with new tax laws, and ensure accurate reporting for both salaried and investment-related incomes.
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Major changes in ITR-2 in AY 2023-24 and AY 2024-25
The previous assessment years brought significant updates to ITR-2, which still impact many taxpayers:
- Schedule VDA: A new section was introduced to report gains from Virtual Digital Assets like cryptocurrencies.
- Section 89A: An additional clause now offers tax relief for residents receiving income from foreign retirement accounts. Tax paid earlier can now be claimed in the relevant year.
- Section 10(12C): Any payouts from the Agniveer Corpus Fund to Agnipath Scheme members or their nominees are now exempt under this section.
- Section 115BBH: Added under Schedule SI, it deals specifically with taxing digital asset transfers.
- Section 80CCH: Contributions by Central Government employees to the Agniveer Corpus Fund are now eligible for full tax deduction.
- Schedule 80G: Now includes ARN (Acknowledgement Reference Number) for donations, improving traceability and validation.
These updates reflect changes in India’s financial landscape—particularly the rise of digital assets and defence-related benefits—and have made ITR-2 more comprehensive and inclusive.
Documents required for filing ITR-2
To correctly file ITR-2, keep the following documents ready:
- Form 16 from your employer if you have a salaried income
- Form 16A for TDS deducted on interest earned (e.g., fixed deposits or savings accounts)
- Form 26AS to cross-verify all tax deducted at source
- Rent receipts if claiming House Rent Allowance (HRA) and not submitted to your employer earlier
- Capital gains summary or profit/loss statement if you’ve sold shares or securities
- Bank passbooks and Fixed Deposit Receipts (FDRs) to calculate interest income
- Rental income documents, including tenant details and interest on any housing loans
- Proof of any losses you want to set off in the current year
- Previous year’s ITR-V copy to carry forward past year losses
- Tax-saving proof: Insurance premium receipts, donation slips, rent payment receipts, tuition fee slips, etc., for deductions under Sections 80C, 80D, 80G, and 80GG
Having these documents organised beforehand can make your e-filing experience quicker and error-free.
Remember: Always make sure that the data stated in the return matches with the information in your Form 16/16A and Form 26AS.
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What is the structure of ITR-2?
Form ITR-2 is detailed and broken into several parts to cover a wide range of income scenarios:
Part A: Personal details and general information
Income Schedules:
Schedule S: Salary income
Schedule HP: Income from house property
Schedule CG: Capital gains
Schedule VDA: Income from digital assets
Schedule OS: Other income
Capital Gains Specifics:
Schedule 112A and 115AD for equity-related gains
Loss Set-off:
CYLA, BFLA, CFL: Current and carried-forward losses
Deductions:
VIA, 80G, 80GGA, 80GGC, 80DD: For investments, donations, disabilities, and research contributions
Special Schedules:
AMT, AMTC: Minimum Alternate Tax
SPI, SI: Clubbed income and special-rate income
EI, PTI: Exempt income and pass-through income
FSI, TR, FA: Foreign income and tax paid abroad
Schedule 5A: For individuals governed by Portuguese Civil Code
AL: Assets and liabilities (mandatory if income exceeds Rs. 50 lakh)
Tax Deferred on ESOPs: For employees of eligible startups
Final Computations:
Part B-TI and TTI for total income and tax liability
Tax payment summary
Declaration and return preparer details
While the process of preparing and filing ITR-2 can seem a bit complex, the desire for financial compliance and achieving peace of mind should encourage all eligible taxpayers to accurately file ITR-2. Consider consulting with tax professionals or chartered accountants if you encounter any challenges during the procedure. The most important part is ensuring that all information is accurate and submitted within the given deadlines, to avoid penalties and avail the full benefits of tax exemptions.
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Conclusion
Filing ITR-2 ensures your multiple sources of income are reported accurately and in line with current tax regulations. Whether you earn from salary, rent, capital gains, or overseas assets, ITR-2 is designed to cover all complexities in one form. Having your documents ready and understanding form structure helps ease the process. And if you're planning major investments—like buying a home—filing your returns on time strengthens your financial credibility. In fact, maintaining clean ITR records can simplify loan approvals from trusted lenders like Bajaj Finserv.
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