Assessment-year clarification: Although the Income-tax Act, 2025 came into force on 1 April 2026, income earned during FY 2025-26 and the return filed for AY 2026-27 continue to be governed by the Income-tax Act, 1961.
Select AY 2026-27, not Tax Year 2026-27, while filing this return.
In this guide
Eligibility, documents, taxpayer verification, income reporting, capital gains, deductions, foreign disclosures, taxes paid, computation, submission and e-verification.
Who Should File ITR-2?
ITR-2 is meant for individuals and Hindu Undivided Families who do not have income taxable under the head “Profits and Gains of Business or Profession.”
It may be used for income from:
- salary or pension;
- one or more house properties;
- short-term or long-term capital gains;
- sale of shares, mutual funds, land, buildings, gold or other capital assets;
- virtual digital assets;
- interest, dividends and other income;
- lottery, betting or similar special-rate income;
- foreign income or foreign assets;
- agricultural income exceeding ₹5,000;
- brought-forward capital or house-property losses; or
- income exceeding ₹50 lakh.
An individual who was a company director or held unlisted equity shares during FY 2025-26 may also be required to use ITR-2, provided there is no business or professional income.
ITR-2 cannot be used where the taxpayer has business or professional income, including taxable interest, salary, commission, bonus or remuneration received from a partnership firm.
Do not select ITR-2 only because there are two house properties or limited Section 112A gains.
For AY 2026-27, ITR-1 has been expanded to cover eligible taxpayers having up to two house properties and specified long-term capital gains under Section 112A up to ₹1.25 lakh. Check all ITR-1 eligibility conditions before selecting the return form.
Documents to Keep Ready
Before starting, collect:
- PAN, Aadhaar, mobile number and email address;
- Form 16 and salary statements;
- Form 26AS, AIS and TIS;
- bank-interest certificates and dividend statements;
- broker or mutual-fund capital-gains reports;
- purchase and sale details of property, gold or other assets;
- home-loan interest certificate and rental details;
- deduction and donation documents;
- previous ITR and loss schedules, where losses are being carried forward;
- foreign bank, share, property and income records;
- advance-tax and self-assessment-tax challans; and
- details of all bank accounts held during FY 2025-26.
Prefilled information is only a starting point. Reconcile it with Form 16, Form 26AS, AIS, bank statements and investment records before submission.
Step 1: Sign In to myITreturn
Visit myITreturn and sign in using your registered email address and password. Create an account if you are filing through myITreturn for the first time.
From the dashboard, select the existing taxpayer or click Add Tax Filer to create a new member profile.
Step 2: Create or Review the Tax Profile
Enter or verify the taxpayer’s:
- PAN;
- name and date of birth;
- father’s name;
- gender;
- mobile number; and
- email address.
Step 3: Verify the Taxpayer and Authorise myITreturn as ERI
For direct submission through myITreturn, the taxpayer must authorise myITreturn as the e-Return Intermediary.
Open the profile verification screen, click Request OTP, enter the OTP and complete the authorisation.
- Where another ERI is already active on the Income-tax portal, it may first need to be deactivated under: Authorised Partners → My e-Return Intermediary (Read detailed article here)
Alternative filing method: The completed JSON may be downloaded from myITreturn and uploaded manually on the Income-tax e-Filing portal.
Step 4: Complete the Income-Source Questions
Answer the preliminary questions regarding the income earned during FY 2025-26.
Select Yes wherever applicable for:
- salary or pension;
- house property;
- capital gains;
- virtual digital assets;
- interest or dividend income;
- foreign income or foreign assets;
- exempt income;
- brought-forward losses;
- clubbed income; or
- other special-rate income.
These answers determine which income sections and schedules are displayed, as well as the applicable ITR type.
Step 5: Select the Tax Regime and Residential Status
The new tax regime under Section 115BAC is the default regime for AY 2026-27. Select the tax regime only after comparing the tax payable/refund under both regimes.
An ITR-2 taxpayer without business or professional income can opt out of the new regime through the return itself. Form 10-IEA is not required merely for such an ITR-2 filing.
Next, select the correct residential status:
- Resident;
- Resident but Not Ordinarily Resident; or
- Non-Resident.
Residential status affects the reporting and taxation of foreign income and assets. A question-and-answer format is available to help determine the residential status.
Step 6: Review Salary and Pension Income
Open the Salary/Pension section.
Upload Form 16 or enter the information manually. Review:
- employer name, PAN and TAN;
- gross salary;
- exempt allowances;
- perquisites;
- profits in lieu of salary;
- deductions under Section 16; and
- TDS deducted by the employer.
Where the taxpayer changed jobs, add each employer separately. Reconcile the final figures with all Forms 16 and Form 26AS.
Step 7: Enter House-Property Income
Add each self-occupied, let-out or deemed-let-out property separately.
Provide, as applicable:
- property address;
- ownership percentage;
- co-owner details;
- annual rent;
- municipal taxes;
- tenant details;
- interest on housing loan; and
- any arrears or unrealised rent.
Check the income or loss calculated for each property before continuing.
Step 8: Report Interest, Dividends and Other Income
Review or add:
- savings-account interest;
- fixed-deposit interest;
- recurring-deposit interest;
- dividend income;
- family pension;
- taxable gifts;
- interest on income-tax refund;
- lottery or game winnings; and
- any other taxable receipt.
Do not rely only on Form 26AS. Interest may be taxable even where no TDS was deducted.
Step 9: Enter Capital-Gains Transactions
This is one of the most important sections of ITR-2. Review all imported and manually entered transactions before continuing.
For listed shares and mutual funds, use the available broker-import facility or the supported trader-sheet workflow. After import, review the Summary, Long-Term and Short-Term tabs and correct any rejected, duplicated or incomplete records.
For each category, verify:
- description of the asset;
- purchase and sale dates;
- sale consideration;
- acquisition cost;
- transfer expenses;
- whether STT was paid;
- short-term or long-term classification;
- applicable special tax rate; and
- exemption claimed under Sections 54, 54EC, 54F or another provision.
Land and building transactions must be entered separately for each property. The official ITR-2 instructions require short-term and long-term capital gains to be reported according to the relevant asset category.
For AY 2026-27, the earlier reporting split based on transfers occurring before or after 23 July 2024 has been removed.
Step 10: Report Virtual Digital Assets
Enter each taxable transfer of cryptocurrency, tokens or other virtual digital assets in the VDA section.
VDA loss restriction: Review the acquisition cost, sale consideration and resulting taxable income carefully. A VDA loss cannot be set off against income from another VDA or any other source and cannot be carried forward.
Step 11: Enter Deductions
Open the deductions section and add only deductions available under the selected tax regime.
Under the old regime, this may include Sections 80C, 80D, 80CCD, 80E, 80G, 80GG and other applicable provisions. Under the new regime, most Chapter VI-A deductions are unavailable, subject to specified exceptions such as eligible employer contribution under Section 80CCD(2).
Section 80G reporting for AY 2026-27: The return requires additional payment particulars, including the relevant transaction reference number and bank IFSC.
Step 12: Complete Loss, Foreign-Income and Disclosure Sections
Review the applicable sections for:
- current-year loss adjustment;
- brought-forward losses;
- losses to be carried forward;
- clubbing of spouse or minor-child income;
- exempt income;
- foreign-source income;
- foreign tax relief;
- foreign assets;
- pass-through income; and
- assets and liabilities.
Schedule FA: A resident taxpayer required to complete Schedule FA must report relevant foreign assets for the calendar year ending 31 December 2025. Schedule FA is generally not required for a non-resident or resident but not ordinarily resident.
Schedule AL: For AY 2026-27, Schedule AL is mandatory where total income exceeds ₹1 crore. Non-residents and RNORs report only the applicable assets located in India.
Step 13: Review TDS, TCS and Taxes Paid
Check the Taxes Paid section against Form 26AS and your challans.
Verify:
- TDS on salary;
- TDS on interest, rent, property transactions or other income;
- TCS;
- advance tax; and
- self-assessment tax.
Claim only the tax credit that belongs to the taxpayer and the relevant assessment year. Correct any missing challan number, BSR code, payment date or tax amount before finalising the return.
Step 14: Review the Detailed Tax Computation
Open the Income-tax Summary or computation screen.
Check:
- income under every head;
- current-year and brought-forward loss set-off;
- gross total income;
- deductions;
- total income;
- normal-rate and special-rate tax;
- rebate, surcharge and cess;
- TDS, TCS and tax payments; and
- final refund or tax payable.
The ITR-2 computation separately considers income taxable at special rates, including applicable capital gains and VDA income.
If tax remains payable: Pay the self-assessment tax, return to the filing flow and confirm that the challan is reflected in the computation before submission.
Step 15: Confirm Personal, Bank and Return Details
Review the taxpayer’s personal details again and add every savings or current bank account held during FY 2025-26.
Mark the correct account as the primary refund account and ensure that it is pre-validated on the Income-tax portal.
Confirm whether the return is:
- original;
- revised;
- belated; or
- filed in response to a notice.
For a revised return, enter the acknowledgement number and filing date of the original return.
Step 16: Preview and Validate the Return
Review the complete return before submission.
Confirm that:
- all applicable income has been reported;
- capital-gains totals match broker and property records;
- foreign assets and income are fully disclosed;
- losses have been correctly adjusted;
- deductions match the selected regime;
- TDS and tax payments match Form 26AS; and
- the correct bank account is selected for refund.
Resolve every validation error. Do not submit the return merely because the computation shows a refund.
Step 17: Submit the ITR
Click Continue, Submit ITR Now or the corresponding filing option.
Complete the OTP authorisation where required. After successful submission, the dashboard should display:
- acknowledgement number;
- ITR submission status;
- ITR-V download option;
- return summary; and
- e-verification status.
Where direct submission is not used, download the JSON file from myITreturn and upload it through the Income-tax e-Filing portal.
Step 18: E-Verify the Return
Filing is not complete until the return is verified.
Select Verify ITR and use an available method such as:
- Aadhaar OTP;
- bank-account EVC;
- demat-account EVC;
- net banking; or
- digital signature, where applicable.
Verification deadline: If e-Verify Later is selected, verification must be completed within 30 days of filing.
Alternatively, a signed ITR-V may be sent by speed post to CPC, Bengaluru, within the prescribed 30-day period. Save the acknowledgement number and verification confirmation.
Common Mistakes to Avoid
Do not:
- select ITR-2 where business or professional income exists;
- treat prefilled information as complete without reconciliation;
- omit capital-gains transactions because no tax was deducted;
- report only net broker profit without reviewing transaction classification;
- ignore foreign assets, overseas ESOPs or foreign bank accounts;
- claim deductions unavailable under the selected regime;
- claim TDS that does not appear against the taxpayer’s PAN;
- leave self-assessment tax unpaid; or
- forget to e-verify the return.
Conclusion
Filing ITR-2 requires more detailed reporting than ITR-1 because it may cover capital gains, multiple properties, foreign assets, special-rate income and carried-forward losses.
myITreturn can import available information, guide the taxpayer through the applicable income sections, calculate tax and facilitate submission. However, every imported figure must be checked against the taxpayer’s source documents before the return is confirmed, submitted and e-verified.
For further assistance please WhatsApp us on +91-9320546101 or raise a support ticket here.
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