What Is ITR-2? Know Everything About Eligibility, New Changes & Deadlines

As one size doesn’t fit all, the same goes for ITR forms. There are multiple ITR forms that are made for different taxpayers. Some taxpayers earn money only from salaries, some have other sources like property, capital gains, or investments outside India.

ITR-2 is one of the multiple types of ITR forms; each one has different eligible taxpayers.

It is meant for individuals and Hindu Undivided Families (HUFs) who earn from non-business income. ITR-2 is the right form for you if you have capital gains, multiple house properties, or if you earn money from abroad.

What is ITR-2?

“ITR-2 is an Income Tax Return form that is for individuals and Hindu Undivided Families (HUFs) who do not earn money from any business or profession.”

This form is a lot different from ITR-1 as it’s a little complicated because it covers a wider range of income sources and complex financial situations.

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

You can file ITR-2 if you are an individual or belong to a Hindu Undivided Family and earn income from the following:

• If your total income is more than INR 50 lakh.
• If you receive income from a salary or, pension, regardless of the employer count or size of salary.
• If you own multiple properties and you earn from them, whether rented or from any other source of income from that property.
• If you generate income from Capital Gains, like stocks, mutual funds, or selling a property. In this, both short and long-term gains are covered.
• If you earn income from foreign investments.
• If you win money from the lottery or horse races, etc.
• If you have other sources of income, like dividends from shares or bank interest.
• If agricultural income is more than INR 5000.
• If you are a Non-Resident Indian (NRI) or a Resident but Not Ordinarily Resident (RNOR).
• If you are a director in a company or have invested in unlisted equity shares at any point in the year.

Example:

• If you are a salaried employee earning INR 60 lakh annually plus dividends and capital gains from mutual funds, you must file ITR-2.
• If you own two houses (Eg – one in Delhi and another in Pune), you must go for ITR-2.
• If you are an NRI earning rental income in India, you need to file ITR-2.

Who Cannot File ITR-2?

While ITR-2 is for most taxpayers, the ITR-2 applicability rules still exclude many from filing it. Here’s the list below:

• If you have income from a business/profession, and you earn from freelancing, startups, or a consultancy firm.
• If you have an income of less than INR 50 Lakh.
• Or if you are eligible for any other ITR form.

Note: The main difference is the business income. It’s different in different ITR forms. In that case, you will have to file ITR-3 or ITR-4, depending on your income type.

Release & Due Date of ITR-2 for FY 2026-27

The ITR-2 form for Assessment Year (AY) 2026-27 (Financial Year 2025-26) was released on March 31, 2026. The Income Tax Department made the forms for AY 2026-27 available on the e-filing portal from this date, ensuring they are accessible for filing, which is typically done by 31st July, 2026 for non-audit cases.

Release Date: March 31, 2026.

Applicability: For individuals and HUFs having income other than from business or profession (e.g., capital gains, multiple house properties, foreign income).

Due Date: 31st July 2026 for taxpayers not subject to tax audit.

Availability: Accessible via the Income Tax Department e-Filing Portal under “Forms as per Income-tax Act, 1961” for this specific assessment year.

This allowed taxpayers to start filing both offline (via utility) and online (via the e-filing portal). You can also use any third-party income tax software also to make filing ITR easy.

The last date for ITR-2 filing for the financial year 2024-2025 was 15 September 2025. But, for this FY 2025-26, it is as usual 31 July 2026, however, the government can extend it if some major changes are introduced in the ITR-2 form this year.

If in any case, you forgot or missed the deadline, you can still file the return with a late fee. But, it is advised to pay ITR-2 on time to avoid any penalties and hassle.

Major Changes in ITR-2 for FY 2026-27

This year, the government has come up with certain changes in ITR-2 for better accuracy and compliance. Below are the updates:

1. Elimination of the requirement to separately report capital gains earned before and after 23 July 2024.
2. Introduction of additional reporting requirements, including transaction numbers, for claiming deductions on donations.
3. Removal of references to 15% STCG and 10% and 20% LTCG rates across all schedules.

Final Thoughts

So, what is ITR-2? It is the perfect form for individuals and HUFs without any business income but other complex income sources.

Here’s a short summary:

• Choose the form ITR-2 if your income is from capital gains, rent from multiple properties, foreign assets, or if your income is more than INR 50 lakh.
• Do not use ITR-2 if you earn from a business.
• The due date for filing ITR-2 is 31 July 2026.
• Be up to date with the new changes in ITR by the government.

Filing ITR-2 on time will help you maintain good financial records and get loans in the future if required.