ITR-2 Form: Complete Guide for FY 2024-25 (AY 2025-26)
When it comes to income tax filing, choosing the correct form is essential. For taxpayers not engaged in business or professional income, ITR-2 is the go-to option. It is specifically designed for individuals and Hindu Undivided Families (HUFs) with income from salary, capital gains, more than one property, and other sources. In this article, we cover everything you need to know about ITR-2, including eligibility, form structure, key changes, required documents, and recent updates for AY 2025-26.
What is ITR-2?
ITR-2 is an income tax return form applicable for individuals and HUFs who do not have income from business or profession. It is used when income comes from:
- Salary or pension
- Multiple house properties
- Capital gains (short-term and long-term)
- Other sources (interest, lottery winnings, etc.)
- Agricultural income above ₹5,000
- Foreign assets or foreign income
Who Can File ITR-2 for AY 2025-26?
You should file ITR-2 if you are:
- An individual or HUF (Hindu Undivided Family) with income not from business/profession
- Earning from:
- Salary/Pension
- More than one house property
- Capital gains from sale of property, shares, mutual funds, etc.
- Other sources (including lottery, horse races, betting, etc.)
- Agricultural income of more than ₹5,000
- A resident not ordinarily resident (RNOR) or non-resident
- A director of a company
- Holding unlisted equity shares
- Having foreign income or foreign assets
Who Cannot File ITR-2?
You cannot use ITR-2 if:
- You have income from a business or profession
- You are eligible to file using ITR-1 (simpler and shorter form)
Taxpayers eligible for ITR-1 can still file ITR-2 if they prefer, but it’s advisable to use ITR-1 for simplicity if eligible.
Structure of the ITR-2 Form:
The ITR-2 is divided into multiple sections and schedules, including:
Main Parts:
- Part A: General Information
- Part B-TI: Total Income Calculation
- Part B-TTI: Tax Liability on Total Income
- Tax Payments: Advance tax and self-assessment tax
- Declaration & Preparer Details
Schedules:
- S – Salary Income
- HP – House Property
- CG – Capital Gains
- 112A & 115AD – Capital Gains from STT-paid equity/mutual funds (resident & non-resident)
- VDA – Income from Virtual Digital Assets (crypto)
- OS – Other Sources
- CYLA/BFLA/CFL – Losses Set Off and Carry Forward
- VIA – Deductions under Chapter VI-A
- 80G / 80GGA / 80GGC / 80DD / 80CCH – Deductions for donations, disabilities, and Agniveer fund
- AMT / AMTC – Alternate Minimum Tax & Tax Credit
- SPI – Clubbed Income (spouse, minor child)
- SI – Income at Special Rates
- EI – Exempt Income
- FSI/TR/FA – Foreign Income, Tax Relief, Foreign Assets
- PTI – Pass-through Income (e.g., investment funds)
- 5A – Spouse Income under Portuguese Civil Code
- AL – Assets & Liabilities (required if income > ₹50 lakh)
- ESOP – Deferred tax from ESOPs (eligible startups)
Documents Required to File ITR-2:
Keep these documents handy before filing:
- Form 16: Salary details from employer
- Form 16A: TDS details on non-salary income (FD interest, etc.)
- Form 26AS: Consolidated tax summary
- AIS/TIS: Annual Information Statements
- Rent receipts: If claiming HRA and not submitted to the employer
- Capital gains statement: From broker or mutual fund transactions
- Interest certificates: From banks or financial institutions
- Rental income details: Including municipal taxes, interest on home loan
- Proof of deductions: Under Sections 80C, 80D, 80G, etc.
- Previous year’s ITR-V: If claiming past losses
- Foreign asset/income details: If applicable
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Past Year Changes to ITR-2 (AY 2023-24 and AY 2024-25):
Several updates introduced in the past years continue to apply:
- Schedule VDA: Added for crypto & digital assets
- Section 89A: Relief for income from foreign retirement accounts
- Section 10(12C): Tax exemption for payments from Agniveer Corpus Fund
- Section 80CCH: Full deduction for Agniveer contributions (from Nov 2022 onward)
- Schedule SI: Section 115BBH for VDA income
- ARN Details: Now required for donations under Section 80G (clause D)
Important Reminders:
- Tax Regime Selection: You must indicate your preferred tax regime (Old or New). The New Tax Regime is the default for FY 2024-25. Opting out requires Form 10-IEA if income includes business/profession.
- Asset Reporting: Fill Schedule AL only if your total income exceeds ₹1 crore (from AY 2025-26).
Disclaimer:
The views expressed in this article are personal and solely for educational and awareness purposes. They are not intended as financial advice or product recommendations. Please consult a tax professional or financial advisor for personalized guidance.
