Understanding ITR 2 Form: Meaning, Eligibility & How to File 

Are you a salaried individual or someone earning from capital gains, foreign assets, or rental income, but not running a business? Then the ITR-2 form is tailor-made for you.

Filing your income tax return is a legal requirement and a smart financial move. It maintains good standing with the government, aids in loan approvals, and expedites visa applications. By June 2025, India collected ₹4.59 lakh crore in direct taxes, emphasising the importance of tax filing.

In this guide, we will walk you through the ITR-2 form step by step, so you can file accurately, avoid penalties, and stay in full control of your finances.

Key Takeaways

• Salaried individuals and pensioners must file and submit ITR 2.
• Income from properties, gains, and agricultural income over ₹5000 is taxable.
• You can easily file your tax return online from the e-filing portal.

What is the ITR 2 Form?

Individuals and HUFs (Hindu Undivided Families) having multiple income sources other than businesses need to use the ITR 2 Form to file their income tax returns. Usually, salary, capital gains, rent, pension and other income sources are considered in this category.

Who is Eligible to File the ITR 2 Form?

Individuals with income from the sources mentioned below are eligible to file this form:

• Income from salary or pension
• Income from single or multiple properties
• Income from long or short-term capital gains
• Income from other sources, including winning a lottery, horse races and legal ways of gambling
• Agricultural income exceeding ₹5,000
• Foreign Income or Foreign Asset Ownership
• Status as Resident Not Ordinarily Resident (RNOR) or a Non-resident
• Apart from the above-mentioned list, if you are a Director of any company or an individual who has invested in unlisted equity shares, you are required to file your returns using ITR-2.

Who Cannot File the ITR 2 Form?

The following individuals cannot file the ITR II Form:

• If you are an individual or HUF earning from a business or profession
• In case you are an individual eligible to file the ITR 1 Form (Sahaj).

How to File ITR 2 Form Online?

Follow the steps below to file the ITR 2 Form online on the income tax e-filing portal:

• Step 1: Log in to the e-filing portal and navigate to ‘e-file’. Select ‘File Income Tax Return’ under ‘Income Tax Returns’. 
• Step 2: Select the assessment year and click on ‘Continue’. Choose the ‘Online’ option for tax filing and click on ‘Continue’
• Step 3: Choose the status as applicable and continue, and select ‘Help me decide which ITR form to file’ or ‘I know which ITR form I need to file’ and click ‘Proceed’.
• Step 4: Select ‘Let’s Get Started’, verify the pre-filled data, add data if necessary and click on ‘Confirm’.
• Step 5: Fill in your income and deductions under various sections and click on ‘Proceed’.
• Step 6: If you have a tax liability, choose ‘Pay Now’ or ‘Pay Later’ as applicable. Choose ‘Preview Return’ and then click on ‘Preview and Submit Your Return’ if you are eligible for a refund.
• Step 7: Choose ‘Pay Now’ and then select ‘Continue’ to make the tax payment. After completing the payment, click on ‘Return to Filing’ and complete filing your income tax return.
• Step 8: Click on ‘Preview Return’, ‘Preview and Submit Your Return’, select the place and declaration checkbox and click on ‘Proceed to Preview’. Preview and click on ‘Proceed to Validation’.
• Step 9: Click on ‘Proceed to Verification’ after validation.
• Step 10: Select the convenient option and click on ‘Continue’. If you receive a message to link your PAN Card and Aadhaar, proceed with the process first to complete your verification.
• Step 11: On the ‘e-Verify’ page, select the option that is convenient for you and click on ‘Continue’ to complete the process. 

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Structure of ITR 2 Form

Here is the structure for Income Tax Return Form 2:

1. Part A General (personal information, contact details, filing status)

Take a look at the contents of Part A in the Income Tax return Form 2:

• Section to mention an income from salary or pension
• Schedule House Property
• Schedule Capital Gains
• Schedule 112A: Income from the sale of equity shares of a company
• Schedule 115AD: Income from the sale of equity shares of a company (for non-residents)
• Schedule Other Sources
• Schedule CYLA (Current Year’s Loss Adjustment): Details of income after set off of current year losses
• Schedule BFLA (Brought Forward Loss Adjustment): Details of income after set off of Brought Forward Losses of earlier years
• Schedule CFL (Carry Forward Losses): Details of losses to be carried forward to future years
• Schedule VI-A: Deductions under Chapter VI-A (Section)
• Schedule 80G and Schedule 80GGA
• Schedule AMT (Alternate Minimum Tax Payable): Computation of Alternate Minimum Tax Payable under Section 115JC
• Schedule AMTC (Details of Tax Credit under Section 115JD)
• Schedule SPI (Specified Persons Includable): Income of specified persons (spouse, minor child, etc) is includible in the income of the assessee
• Schedule SI: Income chargeable to tax at special rates
• Schedule EI (Exempt Income)
• Schedule PTI (Pass-Through Income)
• Schedule FSI (Foreign Source Income)
• Schedule TR (Tax Relief)
• Schedule FA (Foreign Asset)
• Schedule 5A
• Schedule AL (Asset and Liabilities)

2. Part B – Total Income (TI)

Here is a detailed structure of Part B of the form:

• Tax Paid
• Part B-TTI (Income Tax Liability on Total Income)

Documents Required to File ITR 2 Form

Here are the documents required to file the ITR 2 Form:

• If you are a salaried individual, you need Form 16 issued by your employer.
• In case you earned interest from bank fixed deposits and there is a TDS deduction, present the TDS certificates or Form 16A.
• Download and present Form 26AS to verify TDS deduction from all sources.
• If you reside in a rented property, a rent-paid receipt needs to be presented for HRA (House Rent Allowance) calculation.
• Summary or profit and loss statement of capital gains from shares
• Bank passbook and fixed deposit receipts for interest income calculation
• If you have rental income, you need to provide local tax payment/interest on borrowed capital details (if applicable) for income from property calculation.
• To claim losses during the current year, you need relevant supporting documents.
• If you want to claim losses for the previous year, you will need an ITR-V copy declaring losses.
• Documents or proof for claiming tax-saving deductions under sections 80C, 80D, 80G and 80GG, such as receipts for life and health insurance, donations, rent payments, tuition fees, etc., should be provided if these were not included in your Form 16

Major Changes in ITR 2  Form in 2023-24 and 2024-25

Here are the changes incorporated in the Form ITR 2 filing, which was applicable for the financial year 2023-24: 

• Schedule VDA: The addition of this Schedule aims to compute income from the transfer of virtual digital assets such as cryptocurrencies and others. You are liable to a 30% tax in case of gains from selling or trading digital assets like cryptocurrencies. 
• Section SI: This section includes a new point, namely 115BBH, wherein income from the transfer of Virtual Digital Assets has been added.
• Section 10 (12C): A new exemption has been added under Sec 10(12C) in the category of Other Exempt Income – any payment made from the Agniveer Corpus Fund to an individual enrolled in the Agnipath Scheme or to their nominee.
• Relief Under Section 89A: This is an additional clause associated with relief to residents having income from foreign retirement benefit accounts. 
• Section 80 CCH: A new clause has been added under Chapter VI-A deductions, stating that the full amount contributed by applicants employed by the Central Government to the Agniveer Corpus Fund is eligible for tax deductions.
• ARN: Schedule 80G clause D requires you to incorporate additional information for ARN (donation reference number).

Final Word

The ITR-2 Form is essential for individuals and HUFs not engaged in any business or profession, who are not liable to pay tax on income. It includes several categories of income sources such as salaried income, rental income, income from capital gains and others. If you are a salaried individual with income from these categories, ensure to file this form for Income Tax Return filing. 

If you are an FD investor, remember to submit the TDS certificates, i.e., Form 16A, issued by the deductors, which will confirm that interest has been earned on your fixed deposits and TDS has been deducted. 

For your next FD investment, you can explore the Stable Money app to earn interest of up to 8.40%.