How to File ITR-2 Online for FY 2024-25 (AY 2025-26)?

ITR-2 forms are used by individuals or Hindu Undivided Families whose total income for the assessment year includes:

1. Income from Salary/Pension; or
2. Income from House Property; or
3. Income from short-term or long-term capital gains/ sale of investments/ property.
4. Income from Other Sources (including Winnings from Lottery and Income from Racehorses)
5. Foreign Assets
6. Individuals generating income of Rs.5,000 and above from agricultural sources
7. Individual who is a director of the company or an individual invested in unlisted equity shares
8. The total income generated from above-mentioned sources may be Rs.50 lakh and above

If the Income Tax Returns are clubbed with a spouse, minor child etc, then their returns can only be filed together if the sources of income are similar to the ones mentioned above. Should there be a variation in earnings in even one category, the Assessee is liable to fill up a separate and relevant Income Tax Returns Form.

Who is Not Eligible to File the ITR 2 Return?

1. Any individual or Hindu Undivided Family with income fully or partially earned from a business or profession
   
2. Individuals who are partners in a Partnership Firm

What are the Components of the ITR-2 Form?

The ITR-2 Form is divided into the following categories:

1. Part A: General Information
2. Part B-TI: Computation of Total Income
3. Part B-TTI: Computation of tax liability on total income
4. Schedule S: Details of income from salary
5. Schedule HP: Details of income from house property
6. Schedule CG: Computation of income from capital gains.
   1. Schedule 112A: Income from sale of equity share of a company
   2. Schedule 115AD: Income from sale of equity share of a company (for non-residents)
7. Schedule OS: Computation of income from other sources.
8. Schedule CYLA: Details of Income after Set off of current year losses
9. Schedule BFLA: Details of Income after Set off of Brought Forward Losses of earlier years
10. Schedule CFL: Details of Losses to be carried forward to future years .
11. Schedule VIA: Deductions under Chapter VI-A (Section)
12. Schedule 80G: Details of donations entitled for deduction under section 80G
13. Schedule 80GGA: Donations for rural development and scientific research
14. Schedule AMT: Computation of Alternate Minimum Tax payable under Section 115JC
15. Schedule AMTC: Tax computation under Section 115JD 
16. Schedule SPI: Income of specified persons (spouse, minor child etc) includible in income of the assessee (income of the minor child, in excess of Rs. 1,500 per child, to be included)
17. Schedule SI: Income chargeable to tax at special rates
18. Schedule EI: Details of Exempt Income (Income not to be included in Total Income)
19. Schedule PTI: Income from business trust or investment fund 
20. Schedule IT: Statement of payment of advance-tax and tax on self-assessment.
21. Schedule TDS1: Details of tax deducted at source on salary.
22. Schedule TDS2: Statement of tax deducted at source on income other than salary.
23. Schedule FSI: Details of Income from outside India and tax relief
24. Schedule TR: Summary of tax relief claimed for taxes paid outside India
25. Schedule FA: Details of Foreign Assets and Income from any source outside India
26. Schedule 5A: Information regarding apportionment of income between spouses governed by Portuguese Civil Code
27. Schedule AL: Liability and assets at year end
28. Schedule tax deferred on ESOP: Information of tax deferred on ESOPS
29. Part B: TI: Total Income computation
30. Part B: TTI: Tax liability computation
31. Payment of taxes: Advance tax payment details
32. Declaration: Taxpayer’s declaration
33. Tax return preparer’s details

Instructions to Fill out The ITR 2 Form

When filling up the ITR-2 Form it is advisable to make note of the following instructions and guidelines:

1. Fill out the form as per the following sequence:
   1. Part A
   2. All the schedules
   3. Part B-TI and Part B-TTI
   4. Verification
2. Any schedules not applicable to the Assessee should be struck out with NA (Not applicable) mentioned
3. The Assessee should mention NA against any item not applicable to him or her
4. All figures are to be rounded off to the nearest one rupee except figures for total income/loss and tax payable, which are to be rounded off to the nearest multiple of ten.
5. Individuals falling under the Employer Category you should choose 'Government' if he or she is a Central/State Government employee
6. Individuals working in a public sector company of the Central/State Government should choose 'PSU'
7. If the Assessee is claiming double taxation relief under section 90/90A/91, the ITR-2 Form cannot be used
8. ITR-2 is an annexure-less form. No documents are required to be attached to the form during submission

Documents Required to file ITR 2

1. A copy of last year's tax return
2. Bank Statement
3. TDS certificates
4. Savings certificates/Deductions
5. Interest statement showing interest paid to you throughout the year.
6. Balance Sheet, P&L Account Statement and other Audit Reports wherever applicable.

1. In case you earn from salary, you require Form 16 issued by your employer
2. In case you have earned interest from savings account or fixed deposit, and TDS was deducted, you require a TDS certificate
3. You will require Form 26AS for verification of TDS on your salary as well as other source of income
4. In case you are living in rented premises, you will require rent receipts for calculating HRA

1. In case you have capital gains in shares, you will need summary of profit or loss statement
2. To calculate interest income, you will require bank passbook, Fixed Deposit Receipts (FDR)
3. In case you have incurred loss and wish to claim it, then you will need relevant documents to support it.
4. In case you wish to save tax under Section 80C/ 80G/ 80D or 80GG, then you will need relevant documents to support it
5. In case you wish to claim any loss, you will require a copy of ITR-V

How to File ITR 2 for FY 2024-25 (AY 2025-26)?

You can file your income tax return either offline or online. However, only taxpayers who are 80 years of age or older are eligible for ITR 2 offline filing. Such individuals may quickly file returns using a hardcopy of ITR-2 form and a bar-coded return of income earned. Furthermore, when an assessee files this paper form, the IT department issues an acknowledgement.

To file your ITR online, follow the steps mentioned below:

Step 1: Go to the official income tax e-filing website.

Step 2: Enter your user ID (PAN) and password.

Step 3: Enter the captcha displayed on the screen.

Step 4: From the menu, click on ‘e-File.’

Step 5: Click on ‘Income Tax Return.’

Step 6: On the income tax return page, your PAN information will be updated automatically.

Step 7: Choose 'Assessment Year,' followed by 'ITR Form Number.'

Step 8: Choose 'Filing Type' and then 'Original/Revised Return.'

Step 9: Click the 'Continue' button.

Step 10: Go through the instructions properly. Then, complete the ITR-2 form by entering information in all applicable and necessary fields.

Step 11: To avoid losing data due to session time-out, ensure to choose the 'Save Draft' option regularly.

Step 12: In the ‘Taxes Paid’ and ‘Verification’ sections, select an appropriate verification option

Step 13: To verify your ITR, select an appropriate option.

Step 14: Click on the ‘Preview and Submit’ option.

Step 15: Check if your ITR information is accurate.

Step 16: Click the 'Submit' button.

Steps to file your ITR 2 using Offline Utility

Step 1: Go to the income tax e-filing website.

Step 2: Navigate to e-File > Income Tax Returns > File Income Tax Return and click on 'Downloads' in the top bar.

Step 3: Select the assessment year from the drop-down option.

Step 4: Download the Microsoft Excel file in zip format. Open this file after extracting it to your PC.

Step 5: Choose ‘Enable Content’ and click on the ‘Enable Macros’ option.

Step 6: After the excel file is opened, keep in mind that the completion of the red fields is required and green fields are for entering data. Also, data should not be 'cut' or 'pasted.'

Step 7: Complete the fields under each tab and click on 'Validate.'

Step 8: Validate all of the tabs on this ITR form before calculating the tax.

Step 9: Generate and save the file in XML format.

Step 10: Log in to the income tax e-filing portal.

Step 11: Continue with the same steps as mentioned previously.

Step 12: Select 'Original/Revised Return’ and click on the 'Submission Mode’ option.

Step 13: Submit the excel file by clicking on the ‘Upload XML’ option. Now, file ITR 2 as previously directed.

ITR-2 in AY 2025-2026 – Major Changes

The main changes to ITR-2 for AY 2025-2026 are mentioned in the table below: 

Major updates in ITR-2 in AY 2023-24 and AY 2024-25

The following changes have been incorporated into the ITR-2 form for the Financial Year 2022-23 and will also apply to the Financial Year 2023-24:

1. Section 10(12C) introduces a new exemption for payments received from the Agniveer Corpus Fund, applicable to individuals enrolled under the Agnipath Scheme or their nominees.  

1. A new section called Schedule VDA has been added to report income from transactions involving cryptocurrencies or other virtual digital assets.

1. Schedule SI now includes a new point, 115BBH, specifically for reporting income generated from the transfer of Virtual Digital Assets.

1. Schedule 80G now mandates disclosure of the ARN (donation Reference number) for donations, enhancing transparency and verification.

1. An additional clause under Relief u/s 89A now addresses residents receiving income from foreign retirement benefits, requiring disclosure of taxable income for which relief was previously claimed.

1. Central Government employees can now claim deductions under Section 80 CCH for the entire amount contributed to the Agniveer Corpus Fund.

1. Schedule 80G now mandates disclosure of the ARN (donation Reference number) for donations, enhancing transparency and verification.

To determine residence status, the taxpayer must select among descriptions pertaining to several sections of the Income Tax Act.