Kind Attention Taxpayers: Income Tax Dept Enables Online Filing Of ITR-2 For AY 2026-27

The Income Tax Department on Wednesday announced that online filing of ITR-2 for the assessment year 2026-27 has now been enabled on the e-filing portal. The ITR-2 form is meant for individuals and Hindu Undivided Families (HUFs) who do not earn income from business or profession but have income from sources such as capital gains, multiple house properties, or foreign assets. The category also includes many salaried taxpayers, pensioners, and students with taxable investment income.

"Kind Attention Taxpayers! Online filing and Excel Utility for ITR-2 for AY 2026-27 is now enabled on the E-Filing portal," the Income Tax Department said in a post on X.

This development comes after the department enabled online filing of ITR-1 and ITR-4 on May 15 for the assessment year 2026-27. These forms, applicable for income earned during the financial year 2025-26, were officially notified on March 30.

Taxpayers can file their returns either through the online utility available on the Income Tax e-filing portal or by using the offline Excel utility. The last date for filing ITR-1 and ITR-2 for individual taxpayers is July 31, while non-audit taxpayers filing ITR-4 can submit returns till August 31. With both online filing and Excel utilities now available, taxpayers can begin filing their income tax returns.

What Is ITR-2? Who Can File It?

ITR-2 is a detailed income tax return form prescribed by the Income Tax Department for individuals and HUFs who do not have income from business or profession. It is designed for taxpayers with relatively complex income structures.

The form is generally used by individuals who:
•Earn capital gains from shares, mutual funds, or property sales
•Have income from more than one house property
•Own foreign assets or earn foreign income
•Receive income from lotteries, racehorses, or other legal gambling activities
•Have agricultural income exceeding Rs 5,000

In addition, individuals who are directors in a company or those who have invested in unlisted equity shares are mandatorily required to file ITR-2, regardless of their income level.

Common Mistakes To Avoid While Filing ITR-2

Taxpayers often make mistakes while filing ITR-2, which can result in penalties, interest charges, delays in refunds, or even scrutiny notices from the Income Tax Department. Filing the form carefully and accurately is therefore important to ensure smooth processing.

One of the most common errors is assuming that salaried individuals only need to file ITR-1. However, salaried taxpayers with capital gains, foreign assets, or income from more than one house property must file ITR-2 instead. Taxpayers should also avoid incorrectly classifying short-term and long-term capital gains or failing to provide proper disclosures under Schedule 112A.

Resident taxpayers sometimes forget to disclose foreign assets and overseas bank accounts in Schedule FA, which may lead to compliance issues. Similarly, incorrectly determining residential status can lead to wrong tax calculations and missed requirements such as filing Form 67 for foreign tax credit claims.

Mistakes are also frequently seen in reporting assets like immovable property, bank balances, shares, jewellery, and vehicles. Taxpayers must reconcile all disclosures with Form 26AS and the Annual Information Statement (AIS) to avoid under- or overreporting of income.