How to File ITR 2 Form Online for AY 2025-26

What is ITR 2?

ITR 2 is an income tax return form for individuals and Hindu Undivided Families who do not have income from business or profession. It is designed for taxpayers with more complex income sources than ITR 1.

You should use ITR 2 if you earn from multiple house properties, have capital gains, hold foreign assets or have agricultural income above ₹5,000. It also applies if you are a company director or hold unlisted equity shares.

ITR 2 is used in following cases:
- The total income exceeds ₹50 lakh
- Income comes from salary, multiple house properties or capital gains
- Agricultural income exceeds ₹5,000
- The taxpayer has foreign income or assets
- The taxpayer is a director in a company or holds unlisted equity shares

Compared with ITR 1 which is meant for simple income sources, ITR 2 is broader but still excludes income from business or profession.

Also Read: How to File Income Tax Return 2025: Complete Step-by-Step Guide

ITR 2 Form Applicability: Who Should File ITR 2?

You must file ITR 2 if any of the following apply:

- You are an individual or HUF with income exceeding ₹50 lakh
- You own more than one house property
- You have capital gains from sale of shares, mutual funds or property
- You have foreign income or foreign assets
- You have agricultural income above ₹5,000
- You are a director in a company
- You hold unlisted equity shares
- You have income from lottery, racehorses or other speculative sources

Who cannot file ITR 2?

- Taxpayers with business or professional income
- Taxpayers eligible to file ITR 1

Example: A salaried employee who earns capital gains from selling mutual funds and also has rental income from two properties must file ITR 2.

Documents Required for Filing ITR 2

Before filing ITR 2, keep these documents ready:
- PAN card and Aadhaar card
- Form 16 from employer
- Form 26AS and Annual Information Statement (AIS)
- Bank statements and interest certificates
- Capital gains statements from brokers, demat accounts or property sale deeds
- Proof of investments under Sections 80C, 80D, 80G and 80E
- Property documents and rental agreements for house property income
- Documents for foreign income or foreign asset ownership
- Donation receipts, disability certificates, or other relevant proofs

Step-by-Step Guide to File ITR 2 Form Online for AY 2025-26

Register or Login on the Income Tax Portal:

Register or log in at incometax.gov.in using your PAN as the user ID. Ensure PAN is active and linked with Aadhaar.

Select Assessment Year and ITR 2 Form:

Choose Assessment Year 2025-26 and select ITR 2 form.

Fill Personal and General Information:

Enter personal details, filing status, residential status, contact information and bank account details.

Enter Income Details:

Provide income details including salary, multiple house properties, capital gains, foreign income and other sources.

Claim Eligible Deductions:

Enter deductions under Chapter VI-A such as Sections 80C, 80D, 80G and 80E.

Validate All Entries:

Click the ‘Validate’ button to check for errors or missing information.

Preview Tax Computation:

Review the system-generated tax computation. Compare with Form 26AS or consult a tax expert if needed.

Pay Additional Tax if Applicable:

Pay any outstanding self-assessment tax online. Timely payment avoids your return being marked defective.

Submit and E-Verify Return:

Submit the ITR 2 form online. E-verify using Aadhaar OTP, net banking, electronic verification code or send signed ITR-V by post to CPC Bengaluru.

Download Acknowledgement:

Download and keep the acknowledgement (ITR-V) for your records.

Also Read: ITR Form 16 Filing: How to file ITR using Form 16

Common Mistakes to Avoid When Filing ITR 2

- Using the wrong form such as ITR 1 instead of ITR 2
- Not reporting capital gains or foreign income
- Failing to enter all bank details or forgetting e-verification
- Entering incorrect income or deduction figures
- Using outdated personal details
- Filing after the deadline, leading to late fees under Section 234F

What Happens After Filing ITR 2?

Once you submit ITR 2:
- An acknowledgement (ITR-V) is generated
- The return is processed at the Centralised Processing Centre (CPC) Bengaluru
- You will receive an intimation under Section 143(1) confirming acceptance, refund, or demand
- Refunds, if any, are credited directly to your bank account
- If mismatches exist, the Income Tax Department may issue notices for clarification

Benefits of Filing ITR 2 Timely and Correctly

- Ensures compliance with the law and avoids penalties
- Enables faster refunds
- Improves eligibility for loans and credit cards
- Allows carry forward and set-off of losses
- Serves as proof of income for visas and government tenders
- Builds credibility and provides peace of mind

FAQs

Q.1. Is ITR 2 the right form for me if I have multiple house properties?

A. Yes, you must file ITR 2 if you own more than one house property.

Q.2. Can I file ITR 2 online without a digital signature?

A. Yes, you can e-verify using Aadhaar OTP, net banking, or electronic verification code instead of a digital signature.

Q.3. What documents are needed before filing ITR 2?

A. You need PAN, Aadhaar, Form 16, Form 26AS, bank statements, capital gains proofs, property documents and deduction proofs.

Q.4. How soon will I get my tax refund after filing ITR 2?

A. Refunds are usually processed within weeks, but may take longer depending on CPC processing.

Q.5. Can I revise my ITR 2 after submission?

A. Yes, you can revise until 31 December 2025 or before assessment is completed.

Q.6. What if I do not verify my ITR 2 within 30 days?

A. Your return will be treated as invalid and considered not filed.

Disclaimer:

The contents of this article are for information purposes only and not a financial advisory. The information is subject to update, revision, and amendment and may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Godrej Capital or its Affiliates to any requirements. Godrej Capital or its Affiliates shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any decisions, financial or otherwise based on the contents and information mentioned. For more information, please visit www.godrejcapital.com.