Filing your Income Tax Return (ITR) is a crucial annual responsibility for taxpayers in India. For the Assessment Year (AY) 2025-26, understanding the nuances of the ITR-2 form is essential for individuals and Hindu Undivided Families (HUFs) with diverse income sources. This guide provides an in-depth overview of the ITR-2 filing process, eligibility criteria, step-by-step filing instructions, and recent updates to ensure a seamless filing experience.
Understanding ITR-2
The ITR-2 form is designated for individuals and HUFs who have income from sources other than “Profits and Gains from Business or Profession.” It encompasses various income streams, including:
- Income from Salary/Pension: For individuals receiving salary or pension income.
- Income from House Property: Earnings from more than one house property.
- Capital Gains/Losses: Income from the sale of investments or property, covering both short-term and long-term capital gains.
- Income from Other Sources: Including winnings from lotteries, bets on racehorses, and other legal forms of gambling.
- Foreign Assets/Income: For residents with foreign assets or foreign income.
- Agricultural Income: Exceeding ₹5,000.
Notably, individuals with total income exceeding ₹50 lakh are required to file ITR-2.
Who Should File ITR-2?
You should opt for ITR-2 if:
- Your total income exceeds ₹50 lakh.
- You have income from more than one house property.
- You have earned capital gains from the sale of assets or investments.
- You hold directorship in a company.
- You own shares in an unlisted company.
- You have foreign assets or foreign income.
- You have agricultural income exceeding ₹5,000.
Conversely, if you have income from business or profession, ITR-2 is not applicable; forms like ITR-3 would be appropriate in such cases.
Key Changes and Updates for AY 2025-26
The Income Tax Department has introduced several updates to the ITR-2 filing process for AY 2025-26:
- Enhanced Excel Utility: An upgraded version of the Excel-based utility for ITR-2 was released on March 25, 2025, facilitating a more user-friendly experience.
- Revised Return Filing: Taxpayers now have the option to file revised returns under Section 139(8A), allowing corrections to previously filed returns.
Step-by-Step Guide to Filing ITR-2 Online
Filing your ITR-2 can be accomplished through the Income Tax Department’s e-Filing portal. Here’s a detailed walkthrough:
Step 1: Access the e-Filing Portal
- Visit the official Income Tax e-Filing portal: https://www.incometax.gov.in/iec/foportal.
- Log in using your PAN (User ID), password, and the provided captcha code.
Step 2: Initiate Filing Process
- Upon logging in, navigate to the ‘e-File’ menu.
- Select ‘Income Tax Returns’ and then click on ‘File Income Tax Return’.
Step 3: Select Assessment Year and Filing Type
- Choose the Assessment Year as 2025-26.
- Select the filing type as ‘Original’ or ‘Revised Return’ based on your situation.
Step 4: Choose Filing Status
- Indicate your filing status as ‘Individual’ or ‘HUF’, as applicable.
Step 5: Select ITR Form
- The system will prompt you to select the appropriate ITR form. Choose ‘ITR-2’.
Step 6: Fill in the Required Details
- The ITR-2 form is comprehensive and divided into various sections. Ensure you provide accurate information in the following areas:
- Personal Information: Name, PAN, Aadhaar number, contact details, etc.
- Gross Total Income: Details of salary, house property income, capital gains, and other sources.
- Deductions and Taxable Income: Information on deductions under Chapter VI-A (e.g., Section 80C, 80D).
- Tax Paid and Verification: Details of taxes paid, TDS, and verification section.
Step 7: Validate and Submit
- After entering all necessary details, validate each section to ensure accuracy.
- Once validated, proceed to submit the return.
Step 8: E-Verify the Return
- Post submission, it’s imperative to verify your return. E-verification can be done through:
- Aadhaar OTP.
- Net Banking.
- Electronic Verification Code (EVC).
- Sending a physical copy of ITR-V to CPC, Bengaluru.
E-verifying ensures faster processing of your return and expedites any refund process.
Important Deadlines
- Due Date for Filing: The deadline for filing ITR-2 for AY 2025-26 is July 31, 2025, for individuals and HUFs not requiring an audit.
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