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There is a big and important update for taxpayers filing Income Tax Returns (ITR). The Income Tax Department has made online filing of ITR-2 form and Excel Utility for Assessment Year (AY) 2026-27 active (live) from today i.e. May 27.
Now those taxpayers, whose annual income is not limited to salary only but also have other complex sources of income, can file their returns by visiting the e-filing portal. The department has made available both online and offline options for this.
Last date for filing ITR and mathematics of tax exemption
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Deadline for FY 2025-26 (AY 2026-27): For this period, the last date for filing ITR without late fee has been fixed as July 31, 2026.
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Deadline for tax year 2026-27: The last date for returns for the next assessment year will be July 31, 2027.
Who is exempt and who is required? If your total annual income is less than ₹2.5 lakh, you have no legal obligation to file returns. But if your salary is ₹ 12 lakh, then you will definitely have to file ITR. The advantage is that under the new tax regime the increased Section 87A Due to the exemption of Rs. 12 lakh, even those with a salary of up to Rs. 12 lakh will not have to pay a single rupee of tax, provided they file the return properly.
Who has to fill ITR-2 form?
According to Chartered Accountants (CA) Santosh Mishra and CA Abhinandan Pandey, the ITR-2 form is designed for individuals and Hindu Undivided Families (HUF) who do not have any income from business or profession (trade or self-employed) but have slightly detailed or complex income details:
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Income more than ₹50 lakh: Those whose total annual income is more than ₹50 lakh cannot use the simple form ITR-1 (Sahaj). They must compulsorily choose ITR-2.
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Capital Gain: If you have made short-term or long-term capital gain from stock market, mutual fund or selling any property (house-land).
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More than one house property: If your source of income is rent from more than one house or property.
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Special Investments or Positions: If you hold the post of director in a company or have invested in unlisted equity shares during the year, then ITR-2 will be applicable irrespective of the income.
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Other Sources and Agricultural Income: Amount won from lottery, horse racing, legal gambling or betting and agricultural income exceeding ₹5,000.
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Special Residential Status: This form is required for non-resident (NRIs) and taxpayers with Resident But Not Ordinary Resident (RNOR) status.
5 big mistakes while filing ITR-2 (and CA’s advice)
According to CA Ajay Bagadia, the ITR-2 form is a bit complicated, hence taxpayers often make many serious mistakes during filing. It is very important to avoid these mistakes so that no notice comes from the Income Tax Department in future:
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1. Choosing the wrong residential status: Choosing wrong resident, non-resident or RNOR status spoils the entire tax calculation. Due to this, it is necessary for Foreign Tax Credit Form 67 Things like deposits get left out.
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2. Non-disclosure of foreign assets (Schedule FA): Indian resident taxpayers often forget to declare their bank accounts, foreign shares or assets held abroad in ‘Schedule FA’, which can lead to heavy penalties under the black money law.
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3. Mismatching AIS and 26AS: Before reporting purchase or sale of immovable property, bank interest, share transaction, jewelery or vehicle, be sure to match each entry with your Annual Information Statement (AIS) and Form 26AS.
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4. Wrong reporting of capital gains: Misidentifying short term and long term capital gains or not filling complete details correctly in ‘Schedule 112A’ is a common mistake.
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5. Not setting-off or carrying forward losses: It is important to fill Schedule CFL and Schedule BFLA correctly to carry forward previous year’s business/capital loss. If you file returns after the due date (July 31), the opportunity to carry forward capital loss may be lost.
Expert Tip: If you have changed your job or city during the year, do not forget to update your current employer information and current address in the ITR form.
