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The season for filing Income Tax Returns (ITR) is going on. If your income is more than just a normal salary or income from a house, then you may ITR-2 It is mandatory to fill the form. According to tax experts, it is prudent to file returns well in time without waiting for the last date.
Let us understand in detail who ITR-2 is for, what is the correct step-by-step way to fill it online, and what precautions should be taken.
Who should fill ITR-2 form?
ITR-2 is mainly for individual taxpayers and Hindu Undivided Families (HUF) who do not have any business income from business or profession but their sources of income fall within the following scope:
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Capital Gain or Loss: If you have earned profit (Capital Gain) or suffered loss (Capital Loss) by selling stock market, mutual fund, cryptocurrency or any property (land/house).
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More than one house: If you have more than one house property (house or flat) in your name and it generates rental income.
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Foreign Income/Assets: If you have any property abroad or you receive any income from abroad.
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Agricultural Income: If your income from agriculture is more than ₹ 5,000 annually.
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Special Categories: If you are a director or board member in a company, you hold shares in an unlisted company, or you are a non-resident Indian (NRI).
Step-by-step method to file ITR-2 online
After the upgrade of the e-filing portal, now filling ITR-2 has become much easier. You can fill it online by following the steps given below:
1.Login to the portal:step 1.
Visit the official e-filing portal of the Income Tax Department. Our PAN (PAN Card) Enter the number as user ID and login with the help of your password.
2.Select filing option:Step 2.
After login, go to ‘e-File’ menu on the dashboard. After this click on ‘Income Tax Returns’ and then ‘File Income Tax Return’ Select the option.
3. Selection of assessment year:Step 3.
on next page Assessment Year 2026-27 Select and start the process of online filing (Online Mode). Select ‘Individual’ as the taxpayer and proceed.
4.Data Matching and Validation:Step 4.
system your AIS (Annual Information Statement), tis And Form 26AS Based on your salary, TDS and interest information will be auto-filled in advance. Be sure to match it with your bank statement and salary slip.
5.Fill the Capital Gain Schedule:Step 5.
This is the most important part of ITR-2. In this, enter the exact date of purchase and sale of your shares and mutual funds, the exact price and details of transfer expenses. Check the final tax liability after claiming all the tax deductions.
6.Tax Payment and Submission:Step 6.
If any additional tax liability arises after calculation, first pay the advance tax or self-assessment tax through challan. After this, check the form again and click on the ‘Submit’ button.
Take special care while choosing capital gains and tax regime
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Correct entry of capital gains: The tax rates on short-term (STCG) and long-term (LTCG) capital gains are different in case of shares and property. A small mistake or wrong date entered in the details of purchase and sale can lead to incorrect tax calculations, which may later lead to a notice from the Income Tax Department.
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Choosing the right tax regime: Before submitting the return, compare the tax liability under both the new tax regime and the old tax regime. Choose the option in which your tax is least.
Don’t skip this last step: e-verification
Many taxpayers become complacent after submitting the return, which is a big mistake.
Mandatory rule of 30 days: After submitting ITR-2 online within 30 days It is legally mandatory to do its e-verification. You can verify it instantly by asking for OTP on your Aadhaar registered mobile, through net banking or EVC of pre-validated bank account.
Important Note: If you do not do the e-verification within the stipulated time, the return filed by you will be considered defective/invalid. This would mean that you had not filed the return at all.
3 biggest benefits of filing ITR-2 on time (before July 31)
| Benefit | Description |
| Avoid late fees | If you file your return after the due date of July 31, you may have to pay a penalty (late fee) ranging from ₹ 1,000 to ₹ 5,000. |
| Benefit of loss carry forward | If you have suffered capital loss this year in the stock market or mutual funds, then by filing ITR on time, you can save tax by adjusting (carry forward) this loss from the profits for the next 8 years. This benefit is lost if filled late. |
| Instant Refund Process | Those who file returns in the months of May-June or early July, their data is processed quickly and their tax refund (TDS Refund) gets credited to the bank account much faster. |