The Income Tax Department has enabled both the online filing facility and Excel utility for ITR-2 for Assessment Year (AY) 2026-27 on its e-filing portal, allowing eligible taxpayers to begin filing returns for Financial Year (FY) 2025-26. The move expands filing options and gives taxpayers flexibility in choosing between online and offline modes.

For many taxpayers, choosing the correct return form is the first and most important step. Filing with the wrong form can lead to notices, delays, or return defects. Here is a practical guide to help taxpayers understand whether ITR-2 applies to them and how they can file it.

What is ITR-2?

ITR-2 is an income tax return form meant for Individuals and Hindu Undivided Families (HUFs) that do not earn income from business or profession. The form generally applies to salaried individuals, pensioners, investors, NRIs and taxpayers with multiple income sources.

In simple terms, if you are not eligible to file ITR-1 and do not have business income, ITR-2 may be applicable.

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Who can file ITR-2?

Taxpayers falling under the following categories can use ITR-2:

• Salary or pension income
• Income from more than one house property
• Capital gains from sale of shares, mutual funds or property
• Income from interest, dividends, lotteries and other sources
• Agricultural income exceeding ₹5,000
• Income above ₹50 lakh
• Foreign income or foreign assets
• Non-Resident Indians (NRIs) and Resident Not Ordinarily Residents (RNORs)

Further, directors of companies and taxpayers holding unlisted equity shares are also required to file ITR-2.

Who cannot file ITR-2?

Individuals or HUFs earning income from profits and gains of business or profession cannot use ITR-2 and need to choose other applicable forms.

Changes Introduced in ITR-2 for AY 2026-27

Taxpayers should note several changes this year:

Removal of reporting requirements for capital gains before and after July 23, 2024
Additional transaction details needed for donation deduction claims
Certain short-term and long-term capital gains reporting categories removed from schedules

These changes aim to simplify disclosures and improve reporting efficiency.

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Documents you should keep ready

Before beginning the filing process, taxpayers should keep the following documents available:

Form 16 and Form 16A
Form 26AS
Bank statements and fixed deposit details
Capital gains statements
House property details
Investment proof under Sections 80C, 80D and 80G

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How to file ITR-2 online

Visit the Income Tax e-filing portal and log in using your PAN and password. Select e-File > Income Tax Return, choose AY 2026-27 and click "Start New Filing." Select ITR-2, verify pre-filled details, choose your tax regime and complete the applicable schedules. Review details carefully before submission and complete verification after filing.

Taxpayers can also use the Excel utility for offline preparation and later upload the completed return file.

The due date for taxpayers not requiring audit is July 31, 2026. Filing early may help avoid last-minute portal issues, provide time to correct errors and ensure faster processing of refunds.

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Published on: May 27, 2026 1:10 PM IST