ITR-2 form AY 2026-27: Eligibility, who should file, new changes, due date & online filing guide

If you have capital gains, own more than two house properties, hold foreign assets, or have a total income above ₹50 lakh, you will likely need to file ITR-2. This income tax return form is meant for individuals and HUFs who do not have business or professional income but have more complex sources of income than those covered under ITR-1. In simple terms, ITR-2 is used when your income includes capital gains, foreign income or assets, multiple properties, or other situations that make you ineligible for ITR-1.

This guide explains who should file ITR-2, what has changed for AY 2026-27, the documents you’ll need, and how to file it online, step by step.

Key takeaways

• ITR-2 is for individuals and HUFs with no business or professional income who have capital gains, foreign assets, more than two houses, or income above ₹50 lakh.
• For AY 2026-27, the pre/post 23 July 2024 capital-gains date split has been removed, all FY 2025-26 gains are reported under one set of revised rates.
• The asset and liability (Schedule AL) reporting threshold has been raised to ₹1 crore.
• The due date is 31 July 2026 (non-audit cases), and filing on time is essential to carry forward capital losses.

Who should file ITR-2?

You should file ITR-2 if you are an individual or a Hindu Undivided Family (HUF) without income from business or profession, and any of the following apply:

→ You have capital gains, any short-term capital gains, long-term gains above ₹1.25 lakh, or gains from selling property, gold, unlisted shares, or other assets.
→ You own more than two house properties.
→ Your total income exceeds ₹50 lakh.
→ You have foreign income or foreign assets, or signing authority in an account outside India.
→ You earn income taxable at special rates — such as winnings from lotteries or horse races.
→ You have income from Virtual Digital Assets (crypto), reported under Schedule VDA.
→ You are a company director or hold unlisted equity shares.
→ You have losses to carry forward or set off under any head.
→ You are a non-resident (NRI) or resident but not ordinarily resident (RNOR).
→ Your agricultural income exceeds ₹5,000.

In short: if you’re not eligible for ITR-1 and you don’t run a business or profession, ITR-2 is very likely your form.

Who should not file ITR-2?

ITR-2 is not for you if you have any income from a business or profession, in that case you need ITR-3 (or ITR-4 if you’re under the presumptive taxation scheme).

One useful point: if you are eligible for the simpler ITR-1, you can still choose ITR-2, but there’s rarely a reason to. ITR-1 is shorter, more pre-filled, and quicker. Always use the simplest form that fully fits your income profile.

For information on filing deadlines, tax regimes, required documents, and the filing process, refer to our complete ITR filing guide for FY 2025–26.

What’s new in ITR-2 for AY 2026-27

Several changes apply this year, most of them flowing from the capital-gains overhaul introduced by the Finance Act, 2024 and reflected in the notified ITR forms.

What’s new in ITR-2 for AY 2026-27

Several changes apply this year, most of them flowing from the capital-gains overhaul introduced by the Finance Act, 2024 and reflected in the notified ITR forms.

1. Capital-gains date split removed

For AY 2025-26, taxpayers had to separately report gains earned before and after 23 July 2024 because tax rates changed during the year.

Since the revised capital-gains regime applies throughout FY 2025-26, this bifurcation has been removed. Capital gains are now reported without a date-wise split.

2. Old capital-gains rate fields removed

The earlier schedules contained fields linked to the old 15% short-term capital gains rate under Section 111A and the old 10% long-term capital gains rate under Section 112A.

These have been updated to reflect the revised rates:

• Short-term capital gains under Section 111A: 20%
• Long-term capital gains under Section 112A: 12.5% on gains exceeding the ₹1.25 lakh exemption threshold

3. Schedule AL threshold increased to ₹1 crore

The requirement to disclose assets and liabilities in Schedule AL now applies only if total income exceeds ₹1 crore.

Previously, the threshold was ₹50 lakh.

4. Share buy-back loss reporting added

A new field allows taxpayers to report capital losses arising from share buy-backs, subject to the applicable conditions and corresponding dividend income disclosures.

5. More detailed deduction disclosures

Certain claims now require additional reporting.

Examples include:

• Section 80C deductions
• House Rent Allowance (HRA) exemption under Section 10(13A)

Taxpayers may need to provide a more granular break-up of the amounts claimed.

6. TDS section code now required

The TDS schedule requires taxpayers to specify the section under which tax was deducted.

This improves matching with Form 26AS and other tax records.

→ PAN and Aadhaar (linked)

→ Bank account details

→ Form 16 from your employer

→ Form 16A for TDS on interest and other non-salary income

→ Form 26AS

→ AIS (Annual Information Statement)

→ TIS (Taxpayer Information Summary)

→ Capital gains statements from brokers, mutual fund platforms, or property transactions

→ Foreign asset and foreign income details, where applicable

→ Proof of deductions such as: Life insurance premiums, PPF contributions, ELSS investments, rent receipts, donations, other eligible deductions under the old tax regime.

Step 1: Log in

Log in to the Income Tax e-filing portal using your PAN and password.

Step 2: Start a new return

Go to: e-File → Income Tax Returns → File Income Tax Return

Select:

• Assessment Year 2026-27
• Online mode
• ITR-2
• Your status (Individual or HUF)

Step 3: Review pre-filled information

The portal imports information from:

• AIS
• TIS
• Form 26AS
• TDS records

Carefully compare this data against your own records. Capital gains information is one of the most common causes of mismatches and notices.

Step 4: Complete the relevant schedules

Fill in:

• Salary details
• House property income
• Capital gains schedules
• Foreign asset disclosures
• VDA (crypto) details
• Other applicable schedules

Step 5: Select tax regime and compute tax

Choose either:

• New tax regime
• Old tax regime

Claim eligible deductions and exemptions where applicable.

Pay any self-assessment tax due before submission.

Step 6: Submit and e-verify

Submit the return and complete e-verification within 30 days through:

• Aadhaar OTP
• Net banking
• Electronic Verification Code (EVC)

An unverified return is treated as not filed.

 Deadline and late filing

The due date for filing ITR-2 for AY 2026-27 is 31 July 2026 for taxpayers not subject to audit.

One consequence is particularly important for investors:

If you miss the due date, you generally lose the ability to carry forward capital losses to future years.

Capital losses can otherwise be carried forward for up to eight assessment years and used to offset eligible future gains.

A belated return can still be filed up to 31 December 2026, subject to:

• Late-filing fee under Section 234F
• Interest under Section 234A on unpaid tax, where applicable

Frequently asked questions on ITR 2 form

What is the ITR-2 form?

ITR-2 is an income tax return form for individuals and HUFs who do not have income from business or profession but have more complex income such as capital gains, multiple properties, foreign assets, crypto income, or total income above ₹50 lakh.

Who can file ITR-2?

Individuals and HUFs with capital gains, more than two house properties, foreign income or assets, income above ₹50 lakh, crypto income, directorships, unlisted shares, or losses to carry forward — provided they do not have business or professional income.

What is the difference between ITR-1 and ITR-2?

ITR-1 is meant for simpler cases involving salary, pension, limited house-property income, and certain other income sources.

ITR-2 is designed for taxpayers with capital gains, foreign assets, multiple properties, income above ₹50 lakh, directorships, unlisted shares, or other situations that make them ineligible for ITR-1.

Can I report crypto income in ITR-2?

Yes. Income from Virtual Digital Assets (VDAs) can be reported in Schedule VDA.

Crypto gains are generally taxed under Section 115BBH.

Can an NRI file ITR-2?

Yes. NRIs commonly use ITR-2 when they have taxable income in India but do not have business or professional income.

What is the last date to file ITR-2 for AY 2026-27?

The due date is 31 July 2026 for non-audit cases.

How do I file ITR-2 online?

Log in to the e-filing portal, select AY 2026-27 and ITR-2, reconcile the pre-filled data with your records, complete the applicable schedules, pay any tax due, submit the return, and e-verify it within the prescribed time limit.

Sources and references

• Income Tax Department e-filing portal
• CBDT notifications relating to ITR forms for AY 2026-27
• Income Tax Act, 1961
• Finance Act, 2024
• Relevant provisions relating to Sections 111A, 112A, 115BBH, 234A, 234F, Schedule AL, and Schedule VDA