The Income Tax Department has made major changes to the ITR-2 form for the Assessment Year (AY) 2025-26, which is equivalent to the Financial Year (FY) 2024-25. The changes are intended to make the filing process easier and improve compliance for taxpayers with varied income sources.
(TAXCONCEPT)
Who Should File ITR-2?
ITR-2 form is meant for those individuals and Hindu Undivided Families (HUFs) who have no income from business or profession. It can be used by individuals having income from:
(The Financial Express)
Exceeding ₹50 lakh in salary or pension
From more than one house property
From the sale of investments or property, either as capital gains or losses
Other sources such as winnings from lottery, horse races, etc.
Agricultural income above ₹5,000
Foreign assets or income
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Besides, directors in a company and those who have invested in unlisted equity shares need to furnish returns through ITR-2.
TAXCONCEPT
Important Changes in ITR-2 for AY 2025-26
1. Addition of New Excel-Based Utility
The important change is the launch of a new Excel utility for ITR-2, released on March 25, 2025. It is an upgraded version with better features, like the facility to file revised returns under Section 139(8A), for better filing flexibility and compliance.
(FinTax Blog)
2. Improved Reporting of Capital Gains
Taxpayers with long-term capital gains of up to ₹1.25 lakh under Section 112A can now submit ITR-1 or ITR-4, subject to the condition that they have no capital losses to be carried forward or set off. Extra disclosures are also to be made for such gains, such as acquisition cost and full value of consideration.
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3. Detailed Disclosure Requirements
The new ITR-2 form requires more detailed disclosures, including:
Detailed details on foreign assets and income
Exempt income breakup
Disclosure of assets and liabilities at the year-end for individuals with income over ₹50 lakh
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These regulations serve to ensure transparency and proper reporting.
sscoindia.com
Filing Deadlines
Normal Filing Date: July 31, 2025, for individuals and HUFs not subject to audit.
Filing of Belated Return: In case of default, belated returns may be filed until December 31, 2025, subject to such penalty and interest as may be prescribed.
(taxupdates.cagurujiclasses.com)
Taxpayer Tips
Early Preparation: Begin gathering necessary documents, such as Form 16, interest certificates, and details of capital gains, to ensure timely filing.
Understand Form Applicability: Ensure that ITR-2 is the correct form for your income sources to avoid issues with processing.
Utilize the New Utility: Leverage the new Excel-based utility for a more streamlined filing experience.
(sscoindia.com)
The revisions to the ITR-2 form for AY 2025-26 are a testament to the Income Tax Department’s efforts to make the tax filing process simpler and more compliant. Taxpayers are urged to get acquainted with these changes to facilitate correct and timely filling