Intro:
The ITR-2 offline utility for AY 2025-26 is now live on the Income Tax Portal. If you’re an individual or HUF with capital gains, foreign assets, or multiple house properties, this form likely applies to you. Here’s a full breakdown to simplify the process.
Who Should Use ITR-2 for AY 2025-26?
ITR-2 is meant for individuals and Hindu Undivided Families (HUFs) who don’t earn income from business or profession, but may have:
- Capital gains/losses
- Foreign income or foreign assets
- Income from more than one house property
- Agricultural income over ₹5,000
- Dividend or interest income exceeding exemption limits
- Director status in a company
- Unlisted equity shares
If you have income from salary, pension, property, or other sources — but no business income — ITR-2 is for you.
What’s New in ITR-2 for AY 2025-26?
CBDT notified ITR forms via Notification No. 40/2025 dated 29.04.2025. Key updates in ITR-2 this year:
| Feature | AY 2024–25 | AY 2025–26 |
|---|---|---|
| Capital Gains Reporting | Manual entry of scrip-wise details | Automated import option via AIS/TIS |
| Crypto/VDAs | Separate disclosure section | Mandatory under ‘Schedule VDA’ |
| Schedule 80CCH | Not applicable | Enabled for Agniveer Corpus Fund deduction |
| Regime Choice | Optional in Schedule Part A | Highlighted with pop-up alert while using utility |
Expert Tip: Always download your AIS (Annual Information Statement) before filling capital gain data to avoid mismatch issues.
How to Download ITR-2 Offline Utility?
Here’s how to download and use the ITR-2 offline tool:
- Visit: https://www.incometax.gov.in
- Navigate to → Downloads > Offline Utilities
- Select ITR-2 – AY 2025-26
- Choose utility format:
- Excel Utility (for simpler users)
- Java Utility (for tech-savvy or bulk entries)
Step-by-Step Guide to File ITR-2 Offline
Step 1: Download and install utility
Step 2: Fill in personal details, income, deductions
Step 3: Validate each sheet
Step 4: Generate JSON file
Step 5: Upload it on Income Tax e-filing portal
Step 6: E-verify via Aadhaar OTP, netbanking, or DSC
Legal Basis for ITR Forms
- Section 139(1) of the Income-tax Act mandates timely ITR filing
- CBDT notifies return forms every year under Rule 12 of the Income-tax Rules, 1962
- Latest notification: CBDT Notification No. 40/2025 dated 29.04.2025
ITR-2 vs ITR-1 – Quick Comparison
| Criteria | ITR-1 | ITR-2 |
|---|---|---|
| Income limit | < ₹50 lakh | > ₹50 lakh |
| House properties | One | Multiple |
| Capital gains | Not allowed | Allowed |
| Business income | Not allowed | Not allowed |
| Foreign income | Not allowed | Allowed |
FAQs – ITR-2 Offline Utility
Q1. Can salaried individuals use ITR-2?
Yes, if they have capital gains, foreign assets, or income from multiple house properties.
Q2. Is ITR-2 mandatory for crypto investors?
Yes, if you’ve traded or earned from virtual digital assets (VDAs), ITR-2 is applicable.
Q3. Can I switch tax regimes in ITR-2?
Yes, you can opt for old or new regime while filing under Section 115BAC.
Summary
The ITR-2 offline utility for AY 2025-26 is now available on the Income Tax Portal. It applies to individuals and HUFs with capital gains, foreign income, or multiple house properties. Key updates include crypto disclosure and auto AIS import.
Final Thoughts & CTA
Filing ITR-2 can seem overwhelming — especially with capital gains, foreign income, or crypto reporting. Efiletax offers expert-assisted filing to avoid errors, ensure accuracy, and optimise your tax refund.