ITR-2 Filing

ITR-2 is designed for individuals and Hindu Undivided Families (HUFs) who have income from sources like salary, house property, capital gains, and foreign assets, but do not have income from business or profession. It's ideal for those with multiple income streams and complex tax situations.

Unlike ITR-1, ITR-2 allows reporting of multiple house properties, capital gains, and foreign assets. However, it does not permit reporting of income from business or profession. If you have business income, you'll need to file ITR-3 or ITR-4.

Capital gains from sale of assets like stocks, mutual funds, real estate, or other investments must be accurately reported in ITR-2. This includes calculating the gain or loss, applying appropriate indexation, and determining the tax liability based on the holding period.

ITR-2 requires detailed reporting of foreign assets and income. This includes bank accounts, immovable property, shares, and other investments outside India. Failure to disclose foreign assets can lead to penalties and legal complications.

For the financial year 2024-25 (assessment year 2025-26), the typical deadline for filing ITR-2 is July 31, 2025. However, the Income Tax Department may extend this deadline. It's recommended to file early to avoid last-minute complications.