Filing ITR-2: Your Guide for FY 2024-25 (AY 2025-26)

Is ITR-2 the Right Form for You?

The first and most important step is figuring out if you’re eligible to file ITR-2. This form is specifically designed for individuals and HUFs with income from a few different sources, as long as it’s not from a business or profession.

You should file ITR-2 if you have income from:

• Salary or a pension.
• More than one house property.
• Capital Gains or losses (like from selling shares, mutual funds, or property).
• Other sources, such as winnings from lotteries, horse races, or other forms of gambling.
• Agriculture, if your income exceeds ₹5,000.
• Foreign income or assets.
• You are a Resident Not Ordinarily Resident (RNOR) or a Non-Resident.

Heads up! Even if you’re a salaried individual, you must use ITR-2 if your total income from all sources is more than ₹50 lakh. You also need to use this form if you’re a director in a company or own investments in unlisted shares.

Who Should Steer Clear of ITR-2?

You should not file ITR-2 if you have any income from a business or a profession. For that, you’ll need a different form, like ITR-3 or ITR-4. If you’re eligible to file the super-simple ITR-1 (Sahaj), you also won’t need to worry about ITR-2.

The Documents You’ll Need to File ITR-2

Gathering your documents beforehand makes the filing process a breeze. Think of this as your tax-filing toolkit for ITR-2.

• Form 16: Your employer gives you this document, and it shows your salary and the tax they’ve already deducted (TDS). It’s the cornerstone of your ITR-2 filing.
• Form 26AS: This is your personal tax statement. You can download it from the Income Tax e-filing portal. It’s a lifesaver for cross-checking all the taxes that have been deducted on your behalf, whether it’s from your salary, interest on deposits, or anything else.
• Capital Gains Statement: If you’ve sold stocks, mutual funds, or other assets, you’ll need a detailed statement from your broker showing all your profits and losses. This is critical for an accurate ITR-2.
• Bank Records: Keep your bank passbook, fixed deposit receipts, and bank statements handy to report all your interest income.
• House Property Details: If you have rental income, you’ll need to know the rent received, local taxes paid, and any interest on a home loan for that property. This will help you calculate your “Income from House Property” for the ITR-2 form.
• Proof of Deductions: Have receipts ready for any tax-saving investments under Section 80C, medical insurance premiums under Section 80D, or donations under Section 80G. These are essential for lowering your taxable income when you file ITR-2.
• Foreign Assets/Income Information: If you have income from abroad or own any foreign assets, you will need to provide all the details in the relevant schedules of the ITR-2 form.

Your Step-by-Step Guide to Filing ITR-2 Online

The Income Tax Department has made the online filing process pretty user-friendly. Here’s a simple walkthrough to get your ITR-2 submitted.

1. Log in to the Portal: Head over to the official Income Tax e-filing portal and log in with your credentials.
2. Choose the Right Form: Select the assessment year (AY 2025-26 for income earned in FY 2024-25) and the filing mode, which is “Online.” The system will then prompt you to select the correct form, which in your case will be ITR-2.
3. Fill in the Blanks: The system will pre-fill some of your personal details. Double-check everything for accuracy. Then, you’ll need to manually enter all your income details such as salary, rental income, capital gains, and so on from the documents you gathered earlier.
4. Claim Your Deductions: Next, fill in all your eligible tax-saving deductions under various sections of the Income Tax Act. This is a crucial step to reduce your final tax bill.
5. Let the System Do the Math: The portal will automatically calculate your total tax liability based on the information you’ve entered. Make sure to cross-verify that the TDS details from your Form 26AS match what is shown on the screen.
6. Verify and Submit: Before hitting “submit,” you’ll need to validate the form to check for any errors. Once it’s all green, you can e-verify your return. The most popular way is with an Aadhaar OTP, but you can also use an EVC or a digital signature. If you don’t e-verify, you have to mail a signed physical copy of the ITR-V to the Centralized Processing Center (CPC).

Important Deadlines to Remember for ITR-2

For most individuals and HUFs, the last date to file ITR-2 for FY 2024-25 (AY 2025-26) is July 31, 2025. Don’t miss this! If you do, you can file a belated return by December 31, 2025, but it might come with a late-filing fee.

FAQs

Q1: What is the main difference between ITR-1 and ITR-2?

ITR-1 (Sahaj) is for individuals with a simple financial life—salary, one house property, and other sources (not including lottery winnings), with a total income up to ₹50 lakh. ITR-2 is for individuals with a more complex situation, like multiple properties, capital gains, foreign assets, or a total income over ₹50 lakh.

Q2: Can I file a physical copy of my ITR-2?

No, not usually. The online method is mandatory for most taxpayers. However, if you are 80 years of age or older, you are still allowed to submit a physical paper return.

Q3: What if I forget to report some income or a foreign asset?

It’s important to be accurate. However, if you realize you’ve made a mistake, you can file a revised return to correct it. It’s always better to be proactive and fix an error than to wait for the Income Tax Department to send you a notice.

Q4: How do I know if my ITR-2 has been successfully filed?

You will receive an acknowledgement receipt, called the ITR-V, in your registered email inbox. Make sure to save this for your records as proof of filing.

Conclusion

Filing ITR-2 might seem like a lot, but it’s just a matter of following the steps and having your documents ready. By understanding the eligibility criteria, gathering the right paperwork, and using the simple online portal, you can ensure your taxes are filed accurately and on time.

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