Fill ITR-2 before July 31, tax notice comes due to these mistakes

Fill ITR-2 before 31st July

The Income Tax Department has made online filing option and Excel utility of ITR-2 available on the e-filing portal for the assessment year (AY) 2026-27. Eligible taxpayers can now file their income tax returns through the online portal or offline Excel utility.

Remember the last date of ITR filing

Taxpayers who are eligible to file ITR-2 should file their returns by July 31, 2026, unless the government announces a new deadline. By filing returns on time, last minute mistakes, delays in refunds and increased pressure on the portal can be avoided. Even if a person’s tax liability is zero, if his income exceeds the limit prescribed in the Income Tax Act, he may be required to file ITR.

Who can fill ITR-2?

ITR-2 is for individuals and Hindu Undivided Families (HUF) whose income is not from business or profession. This form is generally used for salaried employees, pensioners, those who own more than one house, those who earn capital gains by selling shares or property and taxpayers who have other complex income sources.

Important for those selling shares, mutual funds or property

If you have made capital gains by selling shares, mutual funds, land or house, or you own more than one house, you may have to file ITR-2. This form is used to report both short term and long term capital gains. Therefore this is an important return form for investors and owners of large assets.

Mandatory for those with income above Rs 50 lakh

Individuals whose total income exceeds Rs 50 lakh generally cannot file ITR-1 and have to file ITR-2. Apart from this, ITR-2 is also mandatory for many NRIs, RNORs, company directors and persons holding unlisted shares. Taxpayers of these categories have to provide additional information.

Also includes foreign assets and lottery income

ITR-2 can also be used to report lottery, horse race winnings or other taxable incidental income. Taxpayers with agricultural income more than Rs 5,000 may also have to fill this form. Whereas those having property, bank account or foreign income abroad have to give complete information about it in the return.

avoid these mistakes

According to experts, the most common mistake is wrong calculation of capital gain or showing it in the wrong category. Many people also fill incomplete information of Schedule 112A related to equity investment. Apart from this, people also make mistakes in determining resident, non-resident (NRI) and RNOR status, which can affect the tax liability.

Before filing ITR-2, please match the income from Form 26AS and AIS. Fill the details of bank account, property, investments, vehicles, jewelery and other important assets correctly. By filing timely and correct returns, problems like notices, penalties and delay in refunds can be avoided.

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