Itr Filing 2025: Itr-2 Notified For Tax Filing In Fy2024-25; Check Who All Should Opt For It

ITR filing: The Central Board of Direct Taxes (CBDT) released nan Income Tax Return form-2, aliases ITR-2, for nan fiscal twelvemonth 2024-2025 connected Monday, pursuing nan caller notification of ITR forms 1, 3, and 5. ITR-2 is peculiarly applicable for a ample number of taxpayers, peculiarly salaried labor and pensioners, and will beryllium applicable retrospectively from April 1, 2025.

Individuals pinch net aliases pension income, aliases those earning income from much than 1 location property, tin record their income taxation return utilizing ITR-2. Notably, immoderate income from superior gains aliases losses from spot aliases different investments, whether semipermanent aliases short-term, must beryllium reported successful this form.

The caller update by CBDT specifies that nan caller ITR-2 is applicable only if nan full income exceeds Rs 1 crore. This alteration will supply alleviation to individuals pinch yearly incomes betwixt 50 lakh and 1 crore, arsenic they will nary longer beryllium required to hole a schedule of assets and liabilities.

"CBDT notifies ITR-Form 2 for AY 2025-26 vide Notification No. 43/2025 dated 03.05.2025. Key updates:   
🖋️ Schedule-Capital Gain divided for gains before/ aft 23.07.2024 (post changes successful Finance Act, 2024)  
🖋️Capital nonaccomplishment connected stock buyback allowed if corresponding dividend income is shown arsenic income from different sources (post 01.10.2024)  
🖋️Asset & liability reporting limit raised to ₹1 crore of full income
🖋️Enhanced reporting for deductions [80C,10(13A)], etc.
🖋️TDS conception codification to beryllium reported successful Schedule-TDS," nan Income Tax section noted. 

Key specifications of ITR Form 2

> Capital gains bifurcation:
New fields successful Schedule-Capital Gains to separately study gains earlier and aft July 23, 2024, successful statement pinch changes introduced successful nan Finance Act, 2024.

> Buyback nonaccomplishment declare allowed:
Capital nonaccomplishment connected buyback of shares tin now beryllium claimed if nan related dividend income is reported nether "Income from Other Sources" (applicable for transactions aft October 1, 2024).

> The ITR 2 shape for nan appraisal twelvemonth 2025-26 (FY 2024-25) offers taxpayers nan action to cipher semipermanent superior gains (LTCG) for properties transferred aft 23rd July 2024 astatine either 20% pinch indexation use aliases 12.5% without indexation. This alteration provides taxpayers pinch elasticity successful determining nan astir advantageous taxation treatment, peculiarly for onshore and building transfers.

> Asset & liability period raised:
Mandatory reporting of assets and liabilities only if full income exceeds ₹1 crore, up from nan earlier limit.

> Detailed conclusion reporting:
More granular disclosure required nether sections for illustration 80C (e.g., PPF, LIC) and 10(13A) (HRA exemption), enhancing transparency.

> TDS conception codification disclosure:
The latest shape now requires taxpayers to specify nan conception nether which TDS has been deducted for a peculiar transaction. In nan past, only nan specifications of nan entity deducting nan TDS and nan magnitude deducted were basal to report. However, pinch nan updated ITR-2 form, taxpayers must now see nan circumstantial conception nether which nan TDS was deducted, for example, 194C aliases 194J.

> Additionally, important changes person been implemented successful nan superior gains schedule of nan precocious released ITR-2 form. Specifically, taxpayers must now supply specifications of superior gains transactions conducted passim nan twelvemonth successful Schedule CG, located wrong Part A of nan ITR-2 form.

> The ITR-2 besides includes enhanced reporting requirements for overseas assets done schedules FA (Foreign Assets) and FSI (Foreign Source Income). Additionally, Schedule VDA mandates transaction-wise reporting of virtual integer assets, which are taxed astatine 30% nether Section 115BBH. Furthermore, nan shape now requires disclosure of Legal Entity Identifier (LEI) for specified high-value transactions.

ITR-2 shape is suitable for?

ITR-2 is designed for salaried taxpayers who are besides investors successful equity shares and communal funds. Salaried individuals must usage ITR-2 alternatively of ITR-1 if they ain much than 1 location property, person assets located extracurricular India, aliases if their full income exceeds Rs 50 lakh.

This shape tin beryllium revenge by individuals aliases Hindu Undivided Families (HUFs) who are not eligible to usage ITR-1 (Sahaj). Taxpayers who do not person income from profits and gains of business aliases profession, arsenic good arsenic income from interest, salary, bonus, commission, aliases remuneration from a business firm, tin besides usage ITR-2.

ITR-2 is suitable for those who wish to nine nan income of different person, specified arsenic a spouse aliases insignificant child, pinch their ain income if nan further income falls nether immoderate of nan aforementioned categories.

ITR-1 vs ITR-2 

ITR-1 (Sahaj) – For Simple Income Profiles

Eligibility: Resident individuals (excluding Not Ordinarily Resident)

Total income up to Rs 50 lakh

Income sources:

Salary aliases pension

Income from 1 location property

Other sources (e.g., interest)

Agricultural income up to Rs 5,000

Ineligible if:

You are a head successful a company

Held unlisted equity shares during nan year

Have overseas assets aliases income

Income includes superior gains (except LTCG up to Rs 1.25 lakh from listed equities)

Total income exceeds Rs 50 lakh

Key Updates for AY 2025–26:

Now allows reporting of semipermanent superior gains (LTCG) up to Rs 1.25 lakh from listed shares and communal funds, simplifying filing for mini investors.

Enhanced reporting for deductions nether sections for illustration 80C and 10(13A).

Detailed TDS accusation required, including section-wise breakdown.

ITR-2

Eligibility:

Individuals and Hindu Undivided Families (HUFs)

Income sources:

Salary aliases pension

Income from much than 1 location property

Capital gains (short-term and long-term)

Foreign assets aliases income

Agricultural income exceeding ₹5,000

Other sources, including lottery winnings

Applicable for residents, Non-Resident Indians (NRIs), and Resident Not Ordinarily Residents (RNORs)

Ineligible if:

You person income from profits and gains of business aliases profession

Key Updates for AY 2025–26:

Capital gains must beryllium reported separately for transactions earlier and aft July 23, 2024, successful statement pinch changes from nan Finance Act, 2024.

Capital nonaccomplishment connected stock buybacks allowed if corresponding dividend income is disclosed arsenic "Income from Other Sources," effective from October 1, 2024.

Asset and liability reporting period accrued from Rs 50 lakh to Rs 1 crore of full income, reducing compliance load for galore taxpayers.

Mandatory reporting of TDS conception codes successful Schedule-TDS for amended classification.

Enhanced disclosure requirements for deductions nether sections for illustration 80C and 10(13A).