ITR-2 AY 2026-27: New Changes, Eligibility, Deadlines, and Filing Process

The Income Tax Department has notified ITR-2 for Assessment Year (AY) 2026-27, introducing important changes that taxpayers must be aware of. This form is applicable to individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession but may have income from salary, capital gains, multiple house properties, or foreign assets.

What is ITR-2?

ITR-2 is an income tax return form designed for individuals and HUFs who earn income from sources other than business or profession. It covers salary, pension, capital gains, multiple house properties, foreign assets, and other sources such as dividends or interest.

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

Individuals and HUFs can file ITR-2 if they fall under the following categories:

• Those with salary or pension income along with capital gains from shares, mutual funds, or property.
• Taxpayers owning multiple house properties.
• Non-Resident Indians (NRIs) and Resident but Not Ordinarily Resident (RNOR).
• Individuals with foreign assets or foreign income.
• Company directors.
• Investors in unlisted equity shares.
• Individuals with income exceeding ₹50 lakh.
• Those with agricultural income exceeding ₹5,000.

Who Cannot File ITR-2?

Taxpayers with income from business or profession, including freelancers, consultants, proprietors, or those under presumptive taxation (Sections 44AD, 44ADA, 44AE), must file ITR-3 instead.

What Are the New Changes in ITR-2 for AY 2026-27?

The form has been updated with several changes:

• Capital Gains Tax Rates Revised: Short-term capital gains under Section 111A are now taxed at 20%, while long-term capital gains under Section 112A are taxed at 12.5%. Transitional rates of 15% for 111A and 20% for Long Term Capital gain are removed as it is no more applicable.
• Donation Disclosures Enhanced: Taxpayers must provide details such as donation reference number, IFSC, donee PAN, and political party details for deductions under Sections 80G and 80GGC.
• Simplified Representative Assessee Reporting: Basic details are required of representative assessee are required.

What Documents Are Required?

To file ITR-2, taxpayers should keep ready:

• Form 16/16A, Form 26AS, AIS/TIS.
• Broker capital gain statements.
• Bank statements and home loan certificates.
• Donation receipts.
• Foreign asset and income details.

How to File ITR-2 Online?

The filing process is straightforward:

1. Log in to the Income Tax Portal.
2. Select “File Income Tax Return” for AY 2026-27.
3. Choose ITR-2.
4. Select either the old or new tax regime.
5. Enter income, deduction, and disclosure details.
6. Verify tax liability and pay self-assessment tax if required.
7. Submit and e-verify using Aadhaar OTP, net banking, or EVC.

What Are the Deadlines?

• The normal due date for filing ITR-2 is 31 July 2026.
• A belated return can be filed until 31 December 2026, subject to late fees.
• A revised return can also be filed until 31 December 2026.

What Are the Risks of Late Filing?

Late filing can lead to:

• A late fee under Section 234F of up to ₹5,000.
• Interest under Sections 234A, 234B, and 234C.
• Restrictions on carrying forward losses.
• Refund delays due to incorrect or incomplete bank details.

Conclusion

ITR-2 for AY 2026-27 is crucial for salaried taxpayers, NRIs, and investors with complex income structures. With revised capital gains rules and stricter disclosure requirements, taxpayers must reconcile AIS, Form 26AS, broker statements, and deduction proofs before filing to avoid notices and delays.