ITR-2 form has been updated on the portal.
The Income Tax Department has started online filing and Excel utility of ITR-2 for Assessment Year (AY) 202627 on the e-filing ITR portal from May 27, 2025. This means that students, pensioners, salaried employees and others who do not need to get income tax audited can now start filing their ITR. You can use the offline Excel utility, online utility or ITR e-filing website to file your income tax return. The last date to file ITR for assessment year 2026-2027 is on or before July 31, 2026. The last date to file ITR for tax year 2026-2027 is July 31, 2027.
However, if your total annual income is less than Rs 2.5 lakh, then you do not need to file ITR. But if your salary income is Rs 12 lakh, then you will have to file ITR. However, due to the increased tax exemption under Section 87A under the new tax regime, you will not have to pay any income tax.
Who can file ITR-2?
Abhishek Soni, chartered accountant and co-founder of Taxwin, said in an ET report that ITR-2 is for those individuals and Hindu undivided families whose income is not from any business or profession, but whose income structure is more complex. This includes income from salary or pension, income from multiple houses, and capital gains or losses (both short-term and long-term) from investments or sale of property.
Additionally, individuals whose total income exceeds Rs 50 lakh, as well as those who are non-resident or ‘Resident Not Ordinarily Resident’ (RNOR), cannot use ITR-1. Therefore, they have to mandatorily file ITR-2, ITR-3, or any other ITR applicable to them.
Soni says that ITR-2 can also be used to report income from ‘other sources’. This includes winnings from lotteries, racecourses, or other legal gambling activities, as well as agricultural income of more than Rs 5,000.
Additionally, individuals who hold the position of director in a company, or who have invested in ‘unlisted equity shares’, are required to mandatorily file ITR-2, regardless of their income level.
What should ITR-2 filers avoid?
Abhishek Soni says in the media report that ITR-2 filing is often more complex, and taxpayers often make mistakes in matters like residential status, reporting of capital gains, and disclosure of foreign assets. Miscategorization of short-term and long-term capital gains, or not reporting details in Schedule 112A, is a common problem.
According to Soni, resident taxpayers sometimes ignore the mandatory reporting of foreign assets and accounts held abroad in Schedule FA, which can lead to compliance issues. Similarly, determining residential status incorrectly—be it resident, non-resident, or RNOR—can lead to incorrect tax calculations and non-fulfillment of compliance requirements. Such as not filing Form 67 for foreign tax credit.
It is also common to make mistakes in reporting assets like immovable property, bank balance, shares, jewelery and vehicles. Taxpayers should carefully match the information provided by them with Form 26AS and AIS to avoid under- or over-reporting of their income.
According to Sony, another common mistake is not handling loss carry-forward and set-off properly. This includes not filing Schedule CFL and Schedule BFLA correctly, or not filing within the prescribed deadlines for carry forward of capital gains losses.
Additionally, taxpayers should also ensure that their address and employer personal information is updated, especially if they have changed jobs or cities during the year. Overall, to avoid mistakes in ITR-2 filing, it is important to carefully categorize the income, provide correct information, and match it completely with the official tax details.
