ITR-2 Form and Excel Utility Now Available on the Portal, See How to File Your Return..

On May 27, 2025, the Income Tax Department launched the online filing facility and Excel utility for ITR-2 on the ITR e-filing portal for Assessment Year (A.Y.) 2026-27. This means that students, pensioners, salaried employees, and others who are not required to undergo an income tax audit can now begin filing their ITRs. You may use the offline Excel utility, the online utility, or the ITR e-filing website to file your income tax return. The deadline for filing ITR for Assessment Year 2026-2027 is on or before July 31, 2026. The deadline for filing ITR for Tax Year 2026-2027 is July 31, 2027.

However, if your total annual income is less than ₹2.5 lakh, you are not required to file an ITR. But if your income from salary is ₹12 lakh, you must file an ITR. Nevertheless, under the new tax regime, due to the enhanced tax rebate available under Section 87A, you will not be liable to pay any income tax.

Who can file ITR-2?
Abhishek Soni, a Chartered Accountant and Co-founder of TaxWin, stated in an ET report that ITR-2 is intended for individuals and Hindu Undivided Families (HUF) whose income does not originate from a business or profession, but whose income structure is relatively complex. This includes income derived from salary or pension, income from multiple house properties, and capital gains or losses (both short-term and long-term) arising from investments or the sale of property. Furthermore, individuals whose total income exceeds ₹50 lakh—as well as those who are Non-Residents or 'Residents Not Ordinarily Resident' (RNOR)—cannot utilize ITR-1. Consequently, they are mandatorily required to file ITR-2, ITR-3, or any other ITR form applicable to their specific circumstances.

Soni notes that ITR-2 can also be used to report income derived from 'Other Sources.' This includes winnings from lotteries, horse races, or other legal gambling activities, as well as agricultural income exceeding ₹5,000.

Additionally, individuals holding the position of a Director in a company, or those who have invested in 'unlisted equity shares,' are mandatorily required to file ITR-2, regardless of their income level.

**Pitfalls ITR-2 Filers Should Avoid**

In media reports, Abhishek Soni observes that ITR-2 filing often involves significant complexities, and taxpayers frequently make errors regarding issues such as residential status, the reporting of capital gains, and the disclosure of foreign assets. The incorrect categorization of short-term versus long-term capital gains—or the failure to provide detailed information in Schedule 112A—is a common issue.

According to Soni, resident taxpayers sometimes overlook the mandatory reporting of foreign assets and overseas bank accounts in Schedule FA, which can lead to compliance-related issues. Similarly, incorrectly determining one's residential status—whether as a Resident, Non-Resident, or RNOR—can result in erroneous tax calculations and a failure to fulfill essential compliance requirements; for instance, failing to file Form 67 to claim foreign tax credits. Errors are also common when reporting assets such as real estate, bank balances, shares, jewelry, and vehicles. To avoid under-reporting or over-reporting their income, taxpayers should carefully reconcile the information they provide with Form 26AS and the AIS.

According to Soni, another common error involves mishandling the procedures for carrying forward and setting off losses. This includes failing to correctly fill out Schedule CFL and Schedule BFLA, or failing to file within the stipulated deadline to carry forward capital losses.

Furthermore, taxpayers must ensure that their personal details—specifically their address and employer information—are up to date, particularly if they have changed jobs or moved to a different city during the financial year. Overall, to avoid errors when filing ITR-2, the careful categorization of income, the provision of accurate information, and a thorough reconciliation with official tax records are essential.

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