ITR-2 Form FY 2025-26: Eligibility, Who Should File, Documents, Due Date & Filing Guide

What is ITR 2 Form?

ITR-2 is an Income Tax Return form for individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession. It is applicable to taxpayers earning income from salary, pension, capital gains, multiple house properties, foreign assets, foreign income, agricultural income exceeding ₹5,000, or virtual digital assets (VDAs) such as cryptocurrency.

If you are not eligible to file ITR-1 (Sahaj), you may need to file ITR-2.

---

What Has Changed in ITR-2 for FY 2025-26?

The Income Tax Department has introduced several updates in ITR-2 for AY 2026-27:

• New field for reporting share buyback losses
• Mandatory transaction date reporting under Schedule VDA for crypto assets
• Removal of capital gains bifurcation before and after 23 July 2024
• Political party name and PAN disclosure required under Section 80GGC
• Section 89A relief reporting removed
• Fee under Section 234I applicable for delayed revised returns
• IFSC and transaction reference number mandatory for certain Section 80G claims
• Secondary address disclosure option added

---

Who Should File ITR-2?

You should file ITR-2 if you have income from any of the following sources:

Salary or Pension

You should file ITR-2 if you have income from any of the following sources:

Salary or Pension

Individuals earning salary or pension income who are not eligible for ITR-1 can file ITR-2.

Multiple House Properties

If you own and earn income from more than one house property, ITR-2 becomes applicable.

Capital Gains

You must file ITR-2 if you have:

• Short-term capital gains (STCG)
• Long-term capital gains (LTCG)
• Gains from shares
• Gains from mutual funds
• Sale of property
• Sale of bonds, gold, or other capital assets

Foreign Assets or Foreign Income

ITR-2 is mandatory if you hold:

• Foreign bank accounts
• Foreign stocks
• Foreign mutual funds
• Overseas ESOPs
• Foreign real estate

Agricultural Income Above ₹5,000

Individuals earning agricultural income exceeding ₹5,000 must file ITR-2.

Directors and Unlisted Shareholders

You must file ITR-2 if:

• You are a director in any company.
• You have invested in unlisted equity shares during the financial year.

NRIs and RNORs

Non-Resident Indians (NRIs) and Resident but Not Ordinarily Resident (RNOR) individuals can file ITR-2 if they meet the eligibility criteria.

Crypto and Virtual Digital Assets

Taxpayers earning income from:

• Bitcoin
• Ethereum
• NFTs
• Other cryptocurrencies

must report transactions under Schedule VDA while filing ITR-2.

---

Who Cannot File ITR-2?

ITR-2 cannot be used if your income includes:

• Business income
• Professional income
• Freelancing income
• Proprietorship income
• Partner remuneration, commission, bonus, salary, or interest from a partnership firm

Such taxpayers generally need to file ITR-3.

---

ITR-2 Due Date for FY 2025-26

The due date for filing ITR-2 for FY 2025-26 (AY 2026-27) is:

Filing your return before the due date helps avoid penalties and ensures faster processing of refunds.

---

Documents Required for Filing ITR-2

You need the following documents to file ITR-2 for FY 2025-26 -

• 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.

---

ITR-2 for Capital Gains

If you have sold any capital asset during the year, you must report it in Schedule CG.

Common examples include:

• Sale of shares
• Mutual fund redemption
• Property sale
• Sovereign Gold Bonds
• Bonds and debentures

Both gains and losses must be disclosed.

Reporting capital losses allows taxpayers to carry forward losses and adjust them against future gains, subject to prescribed conditions.

---

ITR-2 for Crypto Income

Individuals earning income from virtual digital assets must disclose:

• Purchase date
• Sale date
• Cost of acquisition
• Sale consideration
• Profit or loss

The Income Tax Department has strengthened crypto reporting requirements through Schedule VDA.

---

What is the Structure of ITR-2 Form?

The ITR-2 form is broadly divided into two sections: Part A and Part B, along with various schedules for reporting different types of income, deductions, taxes, and disclosures.

Part A – General Information & Income Details

Part A captures the taxpayer's basic information, including:

• Name, PAN, Aadhaar number, address, mobile number, and email ID
• Filing status and return filing details
• Residential status (Resident, RNOR, or NRI)
• Details of unlisted equity shares, directorship in a company, and other mandatory disclosures

It also contains various schedules where taxpayers report income from different sources, such as:

• Salary and pension income
• House property income
• Capital gains from shares, mutual funds, property, etc.
• Income from other sources
• Set-off and carry-forward of losses
• Foreign assets and foreign income disclosures
• Deductions claimed under Chapter VI-A (Sections 80C, 80D, 80G, etc.)

Part B – Tax Computation & Tax Payment Details

Part B summarizes the tax calculation based on the information provided in Part A. It includes:

• Computation of total income
• Calculation of tax liability
• Rebate, surcharge, and cess calculations
• Details of advance tax and self-assessment tax paid
• TDS and TCS details as reflected in Form 16, Form 16A, Form 16B, and Form 26AS
• Bank account details for tax refund processing

Together, Part A, Part B, and the relevant schedules help determine the taxpayer's final tax liability and complete the ITR-2 filing process.

---

9 key schedules relevant for stock traders and investors in ITR-2

Schedule AL (Assets & Liabilities)

Taxpayers with total income exceeding ₹1 crore must disclose their assets and liabilities. This includes immovable property, vehicles, jewellery, shares, securities, cash holdings, and loans related to these assets. Applicable to ITR-2 and ITR-3.

Schedule FA (Foreign Assets)

Schedule FA is used to report foreign assets, foreign accounts, overseas investments, foreign property, and income earned outside India. Taxpayers holding or having beneficial interest in foreign assets must disclose complete details to avoid tax notices.

Schedule SI (Income Taxable at Special Rates)

This schedule reports income taxed at special rates, such as certain capital gains, lottery winnings, and unexplained income. In most cases, Schedule SI is auto-populated based on information provided elsewhere in the return.

Schedule CFL (Carry Forward of Losses)

Schedule CFL captures losses that could not be adjusted during the current year and are carried forward for future set-off. It is commonly used by investors and traders reporting capital or business losses.

Schedule BFLA (Brought Forward Loss Adjustment)

This schedule records the set-off of losses carried forward from previous years against current-year income. It helps taxpayers claim eligible tax benefits on past losses.

Schedule OS (Income from Other Sources)

Schedule OS is used to report income such as interest from savings accounts and fixed deposits, dividend income, lottery winnings, gifts, and other miscellaneous income. Eligible deductions under Section 57 can also be claimed here.

Schedule VDA (Virtual Digital Assets)

Taxpayers dealing in cryptocurrencies and other virtual digital assets must report transaction-wise details in Schedule VDA, including acquisition date, transfer date, cost, and sale consideration. Losses from VDA transactions cannot be set off against other income.

Schedule CG (Capital Gains)

Schedule CG is used to report short-term and long-term capital gains arising from the sale of shares, mutual funds, property, bonds, and other capital assets. It also captures exemptions, indexation benefits, and loss adjustments.

Schedule 112A

Schedule 112A is used to report long-term capital gains from listed equity shares, equity mutual funds, and REITs/InvITs where STT has been paid. It helps calculate taxable LTCG after considering the applicable exemption and grandfathering provisions.

---

How to File ITR-2 Online?

You can file ITR-2 through:

Option 1: Income Tax Portal

• Login to the Income Tax e-Filing Portal.
• Select File Income Tax Return.
• Choose AY 2026-27.
• Select ITR-2.
• Fill income, deduction, and tax details.
• Verify tax computation.
• Submit and e-verify the return.

File Now

Option 2: Tax2Win

Tax2Win allows taxpayers to:

• Upload Form 16
• Import capital gains statements
• Auto-calculate taxes
• Compare old and new tax regimes
• File and e-verify returns online

File Now

Download ITR 2 Form

---

Difference Between ITR-1 and ITR-2

---

Common Mistakes to Avoid While Filing ITR-2

• Selecting the wrong ITR form
• Not reporting capital gains
• Ignoring foreign asset disclosures
• Mismatch between AIS and reported income
• Incorrect bank account details
• Missing e-verification after filing
• Failure to report crypto transactions

---