ITR-2 is intended for individuals whose income sources extend beyond a standard salary and a single house property. You should file ITR-2 if you have incurred capital gains or losses from shares, mutual funds, or other investments; own more than one house property; possess assets or income abroad; or have agricultural income exceeding ₹5,000. Additionally, company directors, board members, shareholders of unlisted companies, and NRIs fall under the purview of ITR-2.

How to file ITR-2 online?
To file ITR-2, first log in to the Income Tax Department’s e-filing portal using your PAN and password. Next, navigate to the ‘e-File’ menu, select ‘Income Tax Returns,’ and then choose the ‘File Income Tax Return’ option. Select the Assessment Year 2026-27 to begin the online filing process.

The system will automatically populate certain details based on your AIS, TIS, and Form 26AS. However, you must cross-check this information against your income, investment, and bank records to ensure there are no errors.

Exercise special care when entering capital gains details
Capital gains constitute a crucial part of ITR-2. You must accurately enter details regarding the purchase and sale of shares, mutual funds, and other assets. Errors in recording dates, prices, and other essential details regarding purchases and sales can lead to an incorrect tax calculation.

Additionally, details regarding salary, house property, interest, dividends, and other income sources should be entered carefully. Choose the option—either the new tax regime or the old tax regime—that results in a lower tax liability for you.

Do not forget e-verification
After filing the return, reconcile the TDS and advance tax details with Form 26AS. If there is any outstanding tax liability, pay it first. After submitting the return, it is mandatory to e-verify it within 30 days using Aadhaar OTP, net banking, or other available methods. If e-verification is not completed, the return will not be considered duly filed and may be deemed invalid (defective).

Why is it important to file the return on time?
Filing a return after the July 31 deadline may attract a late fee. Furthermore, individuals who have incurred capital losses could lose the benefit of carrying them forward to offset against future gains if they fail to file their ITR on time. Therefore, tax experts advise all ITR-2 filers to verify their details promptly and submit their returns without waiting for the deadline.

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