The Income Tax Department has enabled both the online filing facility and Excel utility for ITR-2 for Assessment Year (AY) 2026-27, allowing eligible taxpayers to start filing their income tax returns for Financial Year (FY) 2025-26. The rollout provides taxpayers with the flexibility to file returns either directly through the e-filing portal or by using the offline Excel utility.

ITR-2 is meant for Individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession. The form is commonly used by salaried taxpayers, pensioners, investors, Non-Resident Indians (NRIs), and individuals earning income from multiple sources.

Taxpayers can file ITR-2 if they earn income from salary or pension, own more than one house property, have capital gains from sale of shares, mutual funds or immovable property, receive income from interest or dividends, have agricultural income exceeding Rs.5,000, possess foreign assets or foreign income, or have total income exceeding Rs.50 lakh. The form is also mandatory for company directors and individuals holding unlisted equity shares.

However, taxpayers earning income from profits and gains of business or profession are not eligible to file ITR-2 and must opt for the appropriate return form applicable to their case.

For AY 2026-27, the ITR-2 form incorporates certain changes, including the removal of separate reporting requirements for capital gains before and after July 23, 2024. Additional transaction-level details have been introduced for claiming deductions relating to donations, while certain short-term and long-term capital gains reporting categories have been removed to simplify compliance requirements.

Before filing the return, taxpayers should keep documents such as Form 16, Form 16A, Form 26AS, bank statements, fixed deposit details, capital gains statements, house property information, and proof of investments and deductions under Sections 80C, 80D and 80G readily available.

To file ITR-2 online, taxpayers need to log in to the Income Tax e-filing portal using their PAN credentials, select AY 2026-27, choose “Start New Filing,” and opt for ITR-2. After verifying the pre-filled information, taxpayers must complete the relevant schedules, select the applicable tax regime, review the return carefully, submit it, and complete the verification process. Those preferring offline preparation can use the Excel utility and upload the generated return file on the portal.

The due date for filing returns by taxpayers not subject to audit is July 31, 2026. Filing the return well before the deadline can help taxpayers avoid last-minute technical issues, rectify errors in time, and facilitate quicker processing of refunds.