ITR 2 - Who Should File, Applicability and How to File ITR 2 Online?

Income Tax Returns in India is broadly classified into ITR-1 to ITR-7 based on the type of taxpayers, income level and source of income. ITR-2 is applicable for individuals and HUF not having business income. Usually, individuals having capital gains income choose ITR-2. It is slightly complicated ITR form as compared to ITR-1, with capital gains taxation and foreign assets disclosure, etc.,

Key Highlights

• ITR-2 is applicable for individuals and HUF not having business or professional income.
• Non residents, taxpayers having capital gains, crypto income, income from foreign assets can opt for ITR-2.
• Changes made in ITR-2 this year include, capital gain tax rates, buyback taxation, etc.

What is ITR-2?

ITR-2 is an Income Tax Return form used by individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession. This form is generally applicable to taxpayers earning income from:

• Salary or pension
• Capital gains (short-term or long-term)
• More than one house property
• Foreign assets or foreign income
• Other sources such as interest, dividends, etc.

It is ideal for those who do not qualify for simpler forms like ITR-1 (Sahaj) but still need to report non-business income in detail.

ITR 2 Release Date 

The Income Tax Department released the offline utility tool for ITR-2 on 11th July 2025, enabling taxpayers to file ITR-2 offline. The ITR-2 online utility was released on 18th July 2025, ensuring that taxpayers start e-filing ITR online through the Income Tax Portal.  

Download ITR-2 Form For FY 2024-25 (AY 2025-26)!

Who can file ITR-2 for AY 2025-26?

ITR-2 form is for individuals and HUF receiving income other than income from ‘Profits and Gains from Business or Profession’. Thus, individuals with income from the following sources are eligible to file Form ITR-2:

• Income from salary/pension
• 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 lottery, bets on racehorses and other legal means of gambling)
• Agricultural income of more than Rs 5,000
• Resident not ordinarily resident and a non-resident

The total income from the above sources may exceed Rs 50 lakh.

Further, if you are a Director of any company and an individual who has invested in unlisted equity shares of a company, you must file returns in ITR-2.

Who Cannot file ITR-2 for AY 2025-26?

• Any individual or HUF having income from business or profession.

Note - Taxpayers eligible to file ITR-1 can also file ITR-2. However, it is advisable to file using ITR-1 as long as they meet the eligibility criteria.

How to File Your ITR-2 Online on Income Tax Portal?

Step 1: Visit the Income Tax e-Filing Portal and log in using your PAN as the User ID and your password.

Step 2: After logging in, go to the e-File menu and select “Income Tax Return” from the drop-down. Choose the relevant Assessment Year and select the Online mode of filing.

Step 3: Click “Start New Filing” and select your applicable taxpayer status (Individual, HUF, etc.).

Step 4: Select the appropriate ITR Form (e.g., ITR-2, if applicable to you).

Step 5: Click “Let’s Get Started” and select the reason for filing your return.

Step 6: Choose the schedules applicable as per your sources of income.

Step 7: Begin with General Information, verify the pre-filled data, and select the tax regime (Old or New) applicable to you.

Step 8: Fill in all the relevant schedules according to your income details, then click “Proceed to Verification”.

Step 9: Review your return for errors, correct them if necessary, pay any self-assessment tax due, and submit your ITR.

What Documents do I Need to File ITR-2? 

• Form 16 issued by your employer.
• Form 16A: If TDS has been deducted on interest income on fixed deposits or saving bank account
• Form 26AS: For verification of TDS on salary and non-salary income.
• Rent receipts: For the calculation of HRA (in case you have not submitted the same to your employer).
• Capital Gains Statement: If you have any capital gains transactions in shares or mutual funds.
• Bank Passbook, Fixed Deposit Receipts (FDRs): To calculate amount of interest income.
• Proof documents for tax saving deductions: For claiming tax saving deductions u/s 80C, 80D, 80G, and 80GG such as life and health insurance receipts, donation receipts, rent receipts, receipts for tuition fees etc.,

What is the Structure of ITR-2?

ITR-2 is divided into:

• Part A: General information
• Schedule S: Details of income from salaries
• Schedule HP: Details of income from house property
• Schedule CG: Computation of income under capital gains
  • Schedule 112A- From the sale of equity share of a company or a unit of equity oriented fund /business trust on which STT is paid
  • Schedule 115AD(1)(b)(iii) proviso- For non-residents -From the sale of equity share of a company or a unit of equity oriented fund/business trust on which STT is paid
  • Schedule VDA - Income from Transfer of Virtual Digital Assets
• Schedule OS: Computation of income under income from other sources
• Schedule CYLA: Statement of income after set off of current year’s losses
• Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years
• Schedule CFL: Statement of losses to be carried forward to future years
• Schedule VIA: Statement of deductions (from total income) under Chapter VIA
• Schedule 80G: Statement of donations entitled for deduction under Section 80G
• Schedule 80GGA: Statement of donations for scientific research or rural development
• Schedule 80GGC: Statement of contribution made to political parties
• Schedule 80DD: Details of deduction in respect of maintenance including medical treatment of a dependent who is a person with disability 
• Schedule AMT: Computation of Alternate Minimum Tax payable under Section 115JC
• Schedule AMTC: Computation of tax credit under Section 115JD
• Schedule SPI: Statement of income arising to spouse/minor child/son’s wife or any other person or association of persons to be included in the income of the assessee in Schedules-HP, CG and OS
• Schedule SI: Statement of income which is chargeable to tax at special rates
• Schedule EI: Details of exempt income
• Schedule PTI: Pass through income details from business trust or investment fund as per Section 115UA, 115UB
• Schedule FSI: Statement of income accruing or arising outside India
• Schedule TR: Details of taxes paid outside India
• Schedule FA: Details of Foreign Assets and income from any source outside India
• Schedule 5A: Statement of apportionment of income between spouses governed by Portuguese Civil Code
• Schedule AL: Asset and liability at the year-end (applicable in case the total income exceeds Rs 50 lakh)
• Schedule tax deferred on ESOP: Information of tax-deferred on ESOPS received from eligible start-ups referred to in Section 80-IAC
• Part B-TI: Computation of total income
• Part B-TTI: Computation of tax liability on total income
• Tax payments- Details of payment of advance tax and self-assessment tax
• Declaration by the taxpayer
• Details to be filled if a tax return preparer has prepared the return

Major Changes in ITR-2 in AY 2025-26

The key changes made in form ITR-2 for FY 2024-25 (AY 2025-26) are listed below:

• Capital gains must be split based on transfer date: before or after 23rd July 2024.
• From 1st October 2024, capital losses on share buybacks are allowed if the related dividend income is reported under "Income from Other Sources."
• A new field has been added to the Capital Gains Schedule in ITR forms to report such buy-back losses, ensuring compliance with the amended provisions.
• Reporting required only if total income exceeds ₹1 crore (raised from previous limit).
• Detailed disclosures now required for deductions under Sections 80C, 10(13A) (HRA), etc
• Taxpayers must report TDS sections in 'Details of TDS deducted' for better accuracy and reconciliation.

Check out the video below for a step-by-step guide to file ITR-2 using ClearTax.

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