(As of January 2026 – Based on Current Rules under Income Tax Act 1961; New Act 2025 Applies from Next Year)

ITR-2 is the Income Tax Return form for individuals and Hindu Undivided Families (HUFs) who do not have income from profits and gains of business or profession. It’s commonly used by salaried persons, those with capital gains, multiple house properties, foreign assets, or other income sources where ITR-1 (Sahaj) doesn’t apply.

Important Note for NRIs

NRIs (and RNORs) frequently file ITR-2 for Indian-sourced income (e.g., rental, interest on NRO accounts, property capital gains, dividends). NRIs are taxed only on India-sourced income, must disclose foreign assets in Schedule FA (if applicable), and can claim DTAA benefits. No basic exemption limit applies fully for certain capital gains (flat rates), but consult for your status.

Who Should File ITR-2 for AY 2026-27?

You must file ITR-2 if your total income includes any of the following (and ITR-1 is not applicable):

• Salary/pension
• Income from house property (one or more)
• Capital gains (short-term or long-term, including shares, property, crypto if reported as capital asset)
• Other sources (interest, dividends, lottery, etc.)
• Foreign assets/income (mandatory disclosure in Schedule FA for residents; NRIs report if relevant)
• Agricultural income > ₹5,000 (combined with other income)
• Signing authority in foreign accounts or assets abroad

Not Eligible for ITR-2

• If you have business/profession income → Use ITR-3 or ITR-4.
• If total income is simple salary + one house + other sources ≤ ₹50 lakh with no capital gains → ITR-1 may apply (check eligibility).

Tax Regimes

• New tax regime is default (simplified slabs, fewer deductions).
• You can opt for old regime in the ITR (for non-business cases) if beneficial (e.g., for deductions u/s 80C, 80D).
• Option exercised annually by filing on time.

Current Income Tax Slabs (New Regime, FY 2025-26 / AY 2026-27)

Approximate based on Budget 2025 updates:

• ₹0 – ₹4 lakh: Nil
• ₹4 – ₹8 lakh: 5%
• ₹8 – ₹12 lakh: 10%
• ₹12 – ₹16 lakh: 15%
• ₹16 – ₹20 lakh: 20%
• ₹20 – ₹24 lakh: 25%
• Above ₹24 lakh: 30%

(Plus 4% cess; surcharge if applicable. Old regime has different slabs + deductions.)

Key Changes/Relevance for AY 2026-27

• ITR forms for AY 2026-27 follow the old Income Tax Act 1961 (new Act 2025 effective from AY 2027-28 onwards).
• No major structural changes to ITR-2 reported yet; focus on accurate capital gains reporting, dividend from buybacks, and asset/liability disclosure (threshold often ₹1 crore for some details).
• Pre-filled data from Form 26AS/AIS available.

Due Dates

• Normal due date (non-audit): 31 July 2026
• Belated return: Up to 31 December 2026 (with late fee up to ₹5,000 u/s 234F + interest u/s 234A)
• Filing not started yet (as of Jan 2026) — usually begins April/May.

Required Documents

• PAN card
• Aadhaar (for linking/verification)
• Form 26AS (TDS details)
• AIS (Annual Information Statement) — check mismatches
• Salary slips/Form 16
• Bank statements (interest, NRO/NRE)
• Capital gains statements (mutual funds, shares, property sale deed)
• TDS certificates (Form 16A for rent/other)
• Investment proofs (80C, etc., if old regime)
• Foreign assets details (for Schedule FA)
• Passport/visa for NRIs (residential status proof)

Step-by-Step Guide to File ITR-2 Online (Recommended Method)

The e-filing portal (https://www.incometax.gov.in/iec/foportal/) is the official way — direct online or via offline utility (JSON/XML).

1. Register/Login — Go to incometax.gov.in → Login with PAN + password (or register if new). Verify with Aadhaar OTP/EVC if needed.
2. Select Assessment Year & Form — Dashboard → e-File → Income Tax Returns → File Income Tax Return. AY 2026-27 → ITR-2 → Online mode (or download offline utility for prep).
3. Fill Personal & Residential Details — Pre-filled: Name, DOB, PAN, address. Select residential status: Resident / NRI / RNOR. For NRIs: Confirm “Non-Resident” — impacts taxable income.
4. Income Details (Key Schedules) — Salary (if any), House Property, Capital Gains (detailed for STCG/LTCG; report property sale, shares), Other Sources, Exempt income/agricultural. For NRIs: Report only Indian-sourced; claim DTAA relief if applicable.
5. Deductions & Tax Regime — Chapter VI-A deductions (old regime only). Choose regime (default new; switch if better).
6. Tax Computation & Payments — Auto-computes tax liability. Enter self-assessment tax paid (if any). Check TDS credits from 26AS.
7. Other Schedules (If Applicable) — Schedule FA: Foreign assets/bank accounts (mandatory if > certain thresholds or for residents). Schedule AL: Assets/liabilities (if income > ₹50 lakh or as per rules).
8. Preview & Validate — Check for errors/mismatches (AIS/Form 26AS). Compute tax, interest (if late).
9. Submit & Verify — Submit return. Verify within 30 days: Aadhaar OTP / EVC / Net Banking / DSC / ITR-V (physical post to CPC Bengaluru if not e-verified). Get acknowledgment (ITR-V) via email.

Tips for NRIs Filing ITR-2

• Use ITR-2 for most cases (property sale, NRO interest, capital gains).
• Claim DTAA benefits via Form 10F/TRC if double taxation.
• For property sale: Report in Capital Gains; apply lower TDS certificate if needed.
• Check AIS for pre-filled data (TDS, interest).
• Avoid common errors: Wrong status, missing FA schedule, claiming resident deductions as NRI.

Common Mistakes to Avoid

• Ignoring AIS/26AS mismatches → Leads to notices.
• Not disclosing foreign assets → Penalties.
• Choosing wrong regime without calculation.
• Late verification → Return invalid.

Need Help?

For complex cases (e.g., NRI property sale, repatriation, DTAA claims), consult a CA. At N C Agrawal & Associates (Delhi NCR/Noida), we specialize in NRI ITR-2 filing — call/WhatsApp 9718046555 for assistance.

File on time to avoid penalties and claim refunds smoothly. Track updates on incometax.gov.in as utilities/forms release closer to April 2026!