ITR-2 Filing for FY 2024-25 (AY 2025-26): How to File Income Tax Return for Capital Gains & Multiple Incomes?  

The Income Tax Department has categorized taxpayers based on their income, source of income, and other factors to streamline compliance. The ITR-2 Form is specifically designed for individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession but earn from salary, properties, and capital gains on the sale of assets such as stocks, bonds, and real estate. Filing ITR-2 can seem complex, especially when dealing with multiple income sources and capital gains, but understanding the procedures can simplify the process. This article provides step-by-step instructions on how to file ITR-2 for FY 2024-25 (AY 2025-26) accurately and efficiently.

Effortlessly complete your ITR2 Filing for FY 2024-25 (AY 2025-26) with the expert assistance of IndiaFilings!

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Latest Update: CBDT Notifies New ITR-2 Form for AY 2025-26

The Central Board of Direct Taxes (CBDT) has introduced several key updates to the ITR-2 form to align it with recent amendments made by the Finance Act, 2024. These changes are crucial for taxpayers filing returns for the assessment year 2025–26 and beyond. The notable updates include:

• Separate Capital Gains Reporting: Taxpayers must now report capital gains separately for transactions conducted before and after July 23, 2024, due to structural changes introduced in the Finance Act, 2024.
• Capital Loss on Share Buybacks: Starting October 1, 2024, capital loss on share buybacks will be allowed only if the corresponding dividend income has been disclosed under the head “Income from Other Sources.”
• Threshold for Asset and Liability Disclosure Increased: The income threshold for mandatory reporting of assets and liabilities has been revised. Taxpayers are now required to disclose this information only if their total income exceeds Rs 1 crore (previously Rs 50 lakh).
• Expanded Deduction Reporting: The ITR-2 form now includes expanded reporting fields for deductions under sections such as 80C and 10(13A), enhancing transparency and classification of tax-saving investments and exemptions.
• New Column in Schedule-TDS: A new column has been added to Schedule-TDS to capture the specific section under which TDS was deducted (e.g., 194I for rent, 194J for professional fees), helping cross-verify deductions and improve accuracy.

Below, we have attached the official CBDT notification regarding the new ITR-2 Form.

What is the ITR2 Form?

Who is eligible to file ITR2 for AY 2025-26?

• Income from Salary/Pension
• Income derived from house property, which may involve multiple properties
• Income from Capital Gains or losses incurred from the sale of investments or property, encompassing both long-term and short-term gains/losses
• Income from Other Sources, which includes winnings from lotteries, bets on racehorses, and other legally recognized forms of gambling
• Payment exceeding Rs 5,000 from agricultural activities
• Foreign Income or ownership of Foreign Assets
• Status as a Resident Not Ordinarily Resident (RNOR) or a Non-Resident

Who cannot file ITR-2 for AY 2025-26?

• Individuals or Hindu Undivided Families (HUFs) with Income from business or profession.
• Individuals who are eligible to fill out the ITR-1 form (Sahaj)

Due Date for ITR-2 Filing

The due date for filing ITR-2 for the financial year 2024-25 (assessment year 2025-26) is July 31, 2025, for individuals and Hindu Undivided Families (HUFs) who do not require an audit. If this deadline is missed, a belated return can be filed by December 31, 2025. Additionally, taxpayers now have the option to file an updated return up to four years from the end of the relevant assessment year. It is crucial to file ITR-2 on time to avoid penalties and ensure compliance with tax laws.

Structure of the ITR-2 Form

The ITR-2 form is meticulously structured to capture various aspects of an individual's or HUF's income, ensuring a comprehensive and transparent declaration of financial details. This form is divided into two main parts and several schedules, each serving a specific purpose in the overall computation of taxable income. Understanding this structure is crucial for accurate and efficient filing.

Part A: General Information

This section gathers essential details about the taxpayer, including personal information, address, PAN, assessment year, and filing status. It acts as the cover sheet for the entire return, providing the Income Tax Department with the necessary identification and background data.

Schedules:

The schedules constitute the core of ITR-2, where taxpayers report specific types of income, deductions, and other relevant financial information. Here's a breakdown of the key schedules:

• Schedule S: Income from Salaries: Details of salary received, including allowances, perquisites, and profits in lieu of salary.
• Schedule HP: Income from House Property: Information on income earned from one or more house properties, including rental income and deductions for property taxes and home loan interest.
• Schedule CG: Capital Gains: Computation of capital gains or losses arising from the sale of investments, property, or other capital assets. It distinguishes between short-term and long-term capital gains.
• Schedule 112A: Details related to long-term capital gains on the sale of equity shares or units of equity-oriented funds/business trusts subject to Securities Transaction Tax (STT).
• Schedule 115AD(1)(b)(iii) proviso: For non-residents, this schedule pertains to capital gains from the sale of equity shares or units of equity-oriented funds/business trusts subject to STT.
• Schedule VDA: Reports income from the transfer of Virtual Digital Assets.
• Schedule OS: Income from Other Sources: Disclosure of income from sources other than salary, house property, or capital gains, such as interest income, dividends, lottery winnings, etc.
• Schedule CYLA: Current Year Loss Adjustment: Allows for the setting off of current year losses against income from other sources.
• Schedule BFLA: Brought Forward Loss Adjustment: Facilitates the setting off of unabsorbed losses brought forward from previous years.
• Schedule CFL: Carry Forward Losses: Details losses to be carried forward to future assessment years for set-off.
• Schedule VIA: Deductions: Claims for deductions under Chapter VIA of the Income Tax Act, such as investments in LIC, PPF, NPS, medical insurance premiums, and other eligible deductions.
• Schedule 80G: Reports donations made to eligible charitable institutions and funds.
• Schedule 80GGA: Details donations made for scientific research or rural development.
• Schedule 80GGC: Disclosure of contributions made to political parties.
• Schedule 80DD: Claims deductions for maintenance and medical treatment expenses of a dependent person with a disability.
• Schedule AMT: Computation of Alternate Minimum Tax (AMT) payable under Section 115JC.
• Schedule AMTC: Computation of tax credit under Section 115JD.
• Schedule SPI: Reports income arising to a spouse, minor child, or son's wife that is to be included in the assessee's income.
• Schedule SI: Reports income that is chargeable to tax at special rates.
• Schedule EI: Details exempt income, which is not included in total income.
• Schedule PTI: Reports pass-through income details from business trusts or investment funds as per Section 115UA, 115UB.
• Schedule FSI: Statement of income accruing or arising outside India.
• Schedule TR: Provides details of taxes paid outside India, allowing for claiming foreign tax credit.
• Schedule FA: Disclosure of foreign assets and income from any source outside India, a critical section for residents with global financial interests.
• Schedule 5A: Statement of apportionment of income between spouses governed by Portuguese Civil Code, applicable in specific cases of marital property division.
• Schedule AL: Reports assets and liabilities at the year-end, applicable if the total income exceeds ₹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

This section consolidates the income reported in the various schedules to arrive at the taxpayer's gross total income and then subtracts eligible deductions to determine the total taxable income.

Part B - TTI: Computation of Tax Liability on Total Income

Based on the total taxable income, this section calculates the tax liability using the applicable tax rates. It also factors in any tax credits, relief, or rebates to arrive at the final tax payable.

Tax Payments

This section requires details of advance tax payments, self-assessment tax, and tax deducted at source (TDS) to ensure proper credit for taxes already paid.

Declaration and Verification

The taxpayer must declare that the information provided is accurate and complete and verify the return.

Details of Tax Return Preparer (if applicable)

If a Tax Return Preparer (TRP) has assisted in preparing the return, their details must be provided.

Documents Required to File ITR 2 Online

1. Form 16: Issued by your employer, it details your salary income and tax deducted at source (TDS).
2. Form 16A: If you have earned interest on fixed deposits or savings accounts where TDS has been deducted, the deductors issue this form.
3. Form 26AS helps verify the TDS deducted from your salary and other incomes. It can be downloaded from the e-filing portal.
4. Rent Receipts: If you live in rented accommodation, you’ll need rent receipts to calculate House Rent Allowance (HRA) or claim deductions, especially if these receipts were not previously submitted to your employer.
5. Capital Gains Statements: You'll need a summary or profit/loss statement to compute capital gains for capital gains from shares or securities.
6. Bank Documents: Your bank passbook or Fixed Deposit Receipts (FDRs) will help calculate interest income.
7. Property Income Documents: If you receive rent from property, you’ll need documents like tenant details, local tax payments, or interest on borrowed capital to calculate income from house property.
8. Loss Documents: If you incurred losses during the current financial year or wish to carry forward previous years' losses, you need the relevant documents showing these losses. For previous years' losses, a copy of ITR-V from that year is required.
9. Tax Saving Investment Proofs: You need relevant receipts and documents for claims under sections 80C (investments like PF, PPF, life insurance premiums, etc.), 80D (medical insurance), 80G (donations), and 80GG (rent where no HRA is received).

Modes of Submission for ITR 2

There are two primary methods for filing ITR 2 income tax: Offline and Online.

Offline ITR 2 Filing

If you are 80 years of age or older, you have the option to file ITR-2 offline. In this case, you must submit a physical paper return or use a bar-coded form. Upon submission, the Income Tax Department will issue an acknowledgement.

Online ITR 2 Filing

For online filing of ITR 2 income tax, you can transmit all the necessary information electronically, either with or without a digital signature. After completing the file ITR 2 online, you can verify the return through Return Form ITR-V. If you submit ITR 2 for salaried employees electronically with a digital signature, you will receive the acknowledgement on the registered email."  

Instructions to Fill Up the ITR2 Form for FY 2024-25 (AY 2025-26)

• Fill out the form in the following sequence: Part A, all the schedules, Part B-TI, Part B-TTI, and finally, the verification section.
• Any schedules that do not apply to the Assessee should be struck out with 'NA' (Not Applicable) mentioned.
• The Assessee should use 'NA' against any item that does not apply to them.
• Round off all figures to the nearest one rupee, except for total income/loss and tax payable, which should be rounded off to the nearest multiple of ten.
• For individuals falling under the Employer Category, select 'Government' if they are a Central/State Government employee.
• If working in a public sector company of the Central/State Government, choose 'PSU.'
• If the Assessee claims double taxation relief under section 90/90A/91, the Form of ITR 2 for salaried employees cannot be used.
• ITR2 is an annexure-less form, and no documents need to be attached during submission

Procedure for ITR 2 Return filing

• Login with Your Credentials: Visit the official Income Tax India website and log in using the appropriate login credentials.
• Select the Correct Assessment Year: When filing ITR2, choose the appropriate assessment year and the filing mode (Online/Offline). The assessment year is when you file ITR 2 online following the financial year.
• Select the Assessee Status: Next, select your status as the assessee. ITR2 primarily applies to individuals and HUFs. The system may prefill this information based on your registration status on the income tax portal.
• Choose the ITR-2 Form: Proceed to select the ITR-2 form from the dropdown menu. Once selected, the form will be enabled for filling. You must provide details such as the reason for filing, confirming personal information, validating your bank account, nature of employment, and more. Ensure all figures are entered correctly, and review for any errors or omissions.
• Provide Income Details: This section provides comprehensive information about your Income from various sources, including salary, capital gains, rental Income, and other sources. Fill in the required fields accurately, and ensure you have supporting documents. Complete the schedules provided in the form, if applicable.
• Deductions and Taxable Income: Specify eligible deductions under various sections of the Income Tax Act. These may include deductions for investments, insurance premiums, home loans, and other allowable expenses. Choose appropriate conclusions from the dropdown menu and calculate your taxable Income after applying them.
• Calculate Your Tax Liability: The form will automatically calculate your tax liability based on the income details provided, considering various deductions and exemptions available. Ensure the correct TDS/TCS/Advance Tax details are imported from Form 26AS.
• Validate, Verify, and Generate the JSON File: Validate the ITR-2 form using the validation criteria on the income tax website to ensure it is error-free and ready for submission. After validation, generate the JSON file for online filing.
• Verify the Return: You must verify your return after successfully filling out the JSON file. Verification methods include using an electronic verification code (EVC), Aadhar OTP, digital signature, or sending a signed physical copy to the Centralized Processing Centre (CPC) if electronic verification is not done.
• Acknowledgement and Verification: Upon successful verification, the income tax department will issue an acknowledgement receipt, which will be sent to your registered email address. Keep this acknowledgement for future reference.

ITR 2 Filing Charges

The charges for filing ITR2 can vary depending on the complexity of your financial details and the professional services you employ.

IndiaFilings offers ITR-2 return filing at a very affordable cost, making it accessible for everyone.

Key Differences Between ITR 1 and ITR 2  

How to Download ITR 2 Form?

Here is the simple step-by-step process to download the ITR 2 form

1. Visit the Official Income Tax Portal: Go to the Income Tax Department's official e-filing website.
2. Login to Your Account: Use your credentials (PAN number, password) to log in to your e-filing account.
3. Navigate to 'Downloads' Section: Once logged in, go to the 'Downloads' section on the homepage.
4. Select the Correct Form: In the list of available forms, locate the Form ITR 2 download option for the relevant assessment year (e.g., AY 2025-2026).
5. Click to Download: Select Download ITR 2 in your preferred format, such as Excel, PDF, or XML.
6. Fill and Submit the Form: After you complete the form, save it and submit it electronically through the e-filing portal.

Following these steps, you can quickly form ITR 2 download and file your returns smoothly. Ensure you're downloading the correct version of ITR 2 based on the assessment year to avoid filing errors.

Key Updates in ITR-2 Form

The ITR2 form has undergone several important changes for FY 2022-23, which continue to apply for FY 2023-24:

• Schedule VDA: A new schedule for reporting income from the transfer of Virtual Digital Assets, such as cryptocurrencies.
• Relief u/s 89A: A new provision offers relief for residents earning from foreign retirement benefit accounts:
• Point No. 1(e)4: Addresses income taxable in the previous year where relief under section 89A was claimed in an earlier year.
• Section 10(12C): Introduces a new exemption for payments from the Agniveer Corpus Fund to individuals enrolled under the Agnipath Scheme or their nominees.
• Schedule SI: Adds a new item, 115BBH, to address income from the transfer of Virtual Digital Assets.
• Section 80 CCH: Includes a new deduction under Chapter VI-A for the entire amount Central Government employees contribute to the Agniveer Corpus Fund.
• ARN in Schedule 80G: Now requires additional information regarding the ARN (Donation Reference Number).

Latest Update on the Pay Later Option for Income Tax Filing

For additional information, please refer to our guide – Pay later option for the Income tax return filing.

Effortless ITR2 Filing for FY 2025-26 with IndiaFilings

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• ITR-6 return filing
• ITR-7 return filing

FAQs on ITR-2 Filing

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