If you have been waiting to file your income tax return using the ITR-2 form, the wait is over. The Income Tax Department has opened up the online filing for ITR-2 starting today (18 July). The Form is now live on the official e-filing portal and comes pre-filled with your data, so the process should be slightly less tedious for the taxpayers.
Moreover, the tax department has also released the updated income tax audit forms, 3CA-3CD and 3CB-3CD, on the e-Filing portal.
Who should file using the ITR-2 Form?
ITR-2 is meant for individuals and Hindu Undivided Families (HUFs) who earn income from sources other than business or profession. The Form is for salaried individuals who have capital gains to report and own multiple properties. Those who earn income from other sources, such as dividends, interest (like from FDs) or foreign assets, are also required to fill this Form.
However, this year there's a small tweak in the Form. If your long-term capital gains (LTCG) from equity shares and equity mutual funds are up to Rs 1.25 lakh, you can report them under ITR-1 itself.
But anything beyond that, or other forms of capital gains, will usually nudge you toward ITR-2.
You also need to choose ITR-2 if:
Any shares, property, or mutual funds that you sold during the year
You hold unlisted shares
You own more than one house property
Your income includes someone else's, say, your spouse's or child's, and it needs to be clubbed with yours
You're a resident with assets abroad or have income from outside India
On the other hand, you should not use ITR-2 if you are running a business or earning professional income. Even if you are just a partner in a firm and drawing salary or commission, this Form is not for you.
Also, if your income is simple, just salary, one house property, and some bank interest, and it stays under Rs 50 lakh, you are likely eligible for ITR-1, which is quicker to fill out.
This year's ITR-2 Form has been tweaked a bit to align with recent compliance requirements, though the department has not put out a detailed list of changes yet. If your finances are even mildly complicated, it is a good idea to glance through the Form, or better, take help before hitting submit.
The last date to file, for those who don't need an audit, is 15 September, 2025, a slight extension from the usual deadline of 31 July.
If you are not sure which income tax return to file, there is an option to select "Help me decide which ITR Form to file" which helps you determine the correct ITR. Once you are clear on which ITR to file, continue with filing your return.
How to e-file your return with ITR-2 and key checklists you must review:
You can log into the Income Tax e-filing portal on the department's official website incometax.gov.in. Here you can pick ITR-2 from the dropdown, and begin filing your return.
Most of your salary and interest details should already be filled in, but double-check everything before you submit; mistakes could hold up your refund or worse. For instance, while going over the key sections like Schedule Salary, Schedule House Property, Capital Gains arising from sale/transfer of different types of capital assets, Virtual digital Asset schedule, and Schedule Other Sources - you need to review/enter or edit details before submitting to ensure even the pre-filled data does not show a mismatch after filing.
The capital gains earned from the sale or transfer of varying capital assets are segregated in the ITR-2 form, wherein taxpayers need to:
Make a consolidated computation of capital gains in cases where capital gains arise from the sale or transfer of more than one capital asset (which are of the same type)
However, in the case of the transfer of land/building, it is mandatory to enter the computation towards each land/building.
Taxpayers also need to provide details regarding their short-term and long-term capital gains or losses.
Pay Your Taxes, If Applicable
Once you are done entering your income and deduction details in the different sections:
If there is a tax liability, you will see a summary of your tax computation based on the details provided by you and get the Pay Now and Pay Later option to select. These options are visible at the bottom of your page.
If there is no tax liability, meaning you don't have to pay any taxes, or if there is a refund based on tax computation, you will be taken to the Preview and Submit Your Return page.
E-verification of ITRs is Mandatory
Taxpayers should note that it is mandatory to verify return, and e-Verification (recommended option – e-Verify Now) is the easiest way to verify your ITR. In case you select e-Verify Later, you can submit your return, however, you will be required to verify your return within 30 days of filing your ITR.
Once you e-Verify your return, a success message is displayed along with the Transaction ID and Acknowledgement Number. You will also receive a confirmation message on your mobile number and email ID registered on the e-Filing portal.
