Budget 2025 Updates
Relief for house owners: Finance Minister Nirmala Sitharaman provided relief to homeowners by allowing two self-occupied properties to be considered exempt from tax, up from the previous limit of one.
These changes will be effective from 1 April 2025, i.e., for FY 2025-26
What is ITR 2?
ITR-2 is an income tax return form used in India by certain individuals and Hindu Undivided Families (HUFs) to file their taxes. It's specifically designed for those who don't have income from business or professional activities. Typically, it is used by those receiving income from sources like salary, pension, capital gains, and other sources.
Who can file ITR 2 for AY 2025-26?
Individuals and HUFs having income from any source except “Profits and Gains from Business or Profession” can file their ITRs using ITR 2 form. Here is the list of taxpayers who are eligible to use ITR 2.
Individuals & HUFs having income from the following sources -
- Income from Salary/Pension exceeding Rs.50 lakhs
- Income from House Property(Income Can be from more than one house property)
- Income from Capital Gains/loss on sale of investments/property (Both Short Term and Long Term)
- Income from Other Sources (including winning from the Lottery, bets on Race Horse Races, and other legal means of gambling)
- Foreign Assets/Foreign Income
- Agricultural Income of more than Rs 5000
Taxpayers who are resident not ordinarily resident (RNOR) and Non-residents (NR)
Director of any company registered in India
An individual who is invested in unlisted equity shares of a company
Before FY 2020-21, taxpayers were required to file ITR-2 using the offline utilities ( upload XML online). However, with the launch of the new income tax portal, the income tax department has enabled online filing of ITR 2 from FY 2020-21 onwards.
You can also file your Income Tax Return with Tax2win, an AI-powered portal that automates the e-filing process. It can automatically select the correct ITR form for you, extract and pre-fill data from Form 16 and AIS, and simplify the overall e-filing experience. File your ITR now, or hire an online CA if you need assistance with e-filing your Income Tax Return.
Here’s the step-by-step process to e-file ITR 2 for FY 2024-25.
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Step 1: Log in to the e-Filing portal using your user ID and password.
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Step 2: On your dashboard, go to e-File > Income Tax Returns > File Income Tax Return.
Note: If your PAN is not linked to Aadhaar, a pop-up will notify you that your PAN is inoperative. Click Link Now to link it or select Continue to proceed.
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Step 3: Choose Assessment Year 2025-26 and click Continue.
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Step 4: Select Online as the mode of filing and click Continue.
Note:
- If you have a saved return pending submission, click Resume Filing.
- To discard the saved return and start fresh, click Start New Filing.
- Step 5: Select your applicable filing status and click Continue.
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Step 6: If you know the correct ITR form, select I know which ITR Form I need to file, choose the applicable form from the dropdown, and click Proceed with ITR.
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Step 7: Review the list of required documents and click Let’s Get Started.
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Step 8: Verify your pre-filled data, update any necessary details, and click Confirm at the end of each section.
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Step 9: Enter your income and deduction details in the respective sections. After confirming all entries, click Proceed.
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Step 10: Review your tax computation:
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If you have tax liability, you will see a summary of the amount payable with options to Pay Now or Pay Later.
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If you have no tax liability or are eligible for a refund, click Preview Return to proceed to submission.
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Step 11: If you selected Pay Now, a pop-up will notify you about redirection to the e-Pay Tax Service. Click Continue.
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Step 12: After successful payment, a confirmation message will appear. Click Return to Filing to continue.
- Step 13: Click Preview Return.
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Step 14: On the Preview and Submit Your Return page, enter your location, check the declaration box, and click Proceed to Preview.
Note: If you did not involve a Tax Return Preparer (TRP), leave the TRP fields blank.
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Step 15: Review your return and click Proceed to Validation.
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Step 16: If no errors are found, click Proceed to Verification.
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Step 17: On the Complete Your Verification page, choose your preferred verification method and click Continue.
Note: If your PAN is inoperative, a pop-up will notify you. Click Link Now to link it or select Continue to proceed.
If you choose e-Verify Later, you must verify your return within 30 days of filing.
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Step 18: On the e-Verify page, select a verification method and click Continue.
Note:
- Refer to the How to e-Verify guide for more details.
- If you choose Verify via ITR-V, send a signed physical copy of your ITR-V to the Centralized Processing Center, Bengaluru, within 30 days.
- Ensure your bank account is pre-validated and linked to your PAN for faster refunds.
Once you complete e-Verification, you will receive a success message with a Transaction ID and Acknowledgment Number. A confirmation message will also be sent to your registered mobile number and email.
Important Documents Needed for ITR 2 Filing
- ITR copy of the previous year
- Bank statement
- TDS certificates
- Savings certificates/deductions
- Interest statement reflecting interest received during the year
- Balance sheet, profit and loss account statement, and other applicable audit reports
- If you earn a salary, you need Form 16 from your employer
- If TDS was deducted on interest earned from savings accounts or fixed deposits, you need a TDS certificate
- Form 26AS is necessary to verify TDS on salary and other income sources
- Rent receipts are required for calculating House Rent Allowance (HRA) if you live in rented accommodation
- If you have capital gains from shares, you need a summary of profit or loss statement
- Bank passbook and Fixed Deposit Receipts (FDR) are needed to calculate interest income
- Relevant supporting documents are necessary if you incurred a loss and want to claim it
- For tax savings under Sections 80C, 80G, 80D, or 80GG, you need supporting documents
- If you want to claim any loss, you need a copy of ITR-V.
Whether you want to file your ITR-2 or have any tax-related queries, you can get in touch with our tax experts, who can not only help you file your ITR but also ensure maximum tax savings. From tax planning to tax filing, Tax2win’s experts have got you covered. Book an eCA now!
