ITR-2 Online Filing for FY 2024–25 Goes Live: Check Who Can File and What’s New

The Income Tax Department has officially launched the online filing option for ITR-2 for the financial year 2024–25. This latest move is expected to ease the tax filing process for many individuals, as it allows users to submit returns directly via the e-filing portal using pre-filled data.

The IT Department in a post on X wrote, “Income Tax Return Form of ITR-2 is now enabled for filing through online mode with pre-filled data at the e-filing portal.”

Previously, on July 11, the department released the Excel utilities for ITR-2 and ITR-3, allowing users to download, fill offline, and upload the forms. With the online mode now live, individuals can avoid offline hassles and benefit from automated data population.

Who Should Use ITR-2?

Eligibility Criteria

ITR-2 is ideal for individuals and Hindu Undivided Families (HUFs) who fall under the following categories:

• Earn income from salary or pension

• Own more than one house property

• Have capital gains from asset sales (e.g., stocks, mutual funds, property)

• Receive income from other sources such as interest or dividends

• Do not earn income from business or professional services

This form is not meant for individuals or HUFs who have income from a business or profession (for which ITR-3 or ITR-4 may be more appropriate).

What’s New in ITR-2 for FY 2024–25?

New Capital Gains Reporting Rule

From this year, taxpayers must report long-term capital gains separately for the period before and after July 23, 2024, due to revised indexation and taxation rules that have come into effect. This change aims to improve clarity in tax calculations.

Unlisted Bonds & Debentures

If you own unlisted bonds or debentures, you’re now required to mention them clearly based on the duration of your holding. This helps the IT department assess the correct capital gains treatment.

Share Buyback Earnings After October 1, 2024

“Any money you receive from share buybacks on or after October 1, 2024 should be shown under ‘Income from Other Sources’ and also marked as ‘Nil’ under capital gains.”

This rule change reflects the shifting tax treatment of such buyback payouts and prevents dual categorization.

Asset and Liability Disclosure Threshold Raised

Another crucial update is the increase in the income threshold for mandatory disclosure of assets and liabilities.

“If you earn more than Rs 1 crore in a year, you must disclose your assets and liabilities. This limit was earlier set at Rs 50 lakh.”

This change aligns reporting requirements with rising incomes and inflation.

How to File ITR-2 Online

Filing your ITR-2 online is now simpler thanks to the pre-filled data and portal-based process:

1. Visit: https://www.incometax.gov.in

2. Log in using your PAN/Aadhaar credentials.

3. Choose ITR-2 from the list of return forms.

4. Review the auto-filled information (based on your Form 26AS, AIS, TIS, etc.)

5. Make any necessary updates or corrections.

6. Validate and submit your return.

7. Complete e-verification via Aadhaar OTP, net banking, or other accepted methods.

Conclusion

The introduction of online filing for ITR-2 in FY 2024–25 marks a progressive step toward simplifying the tax return process in India. With the form now available on the e-filing portal and pre-filled data enabled, taxpayers can experience a smoother and more accurate filing journey.

The Income Tax Department’s decision to include new disclosures—like separate capital gains reporting, buyback treatment, and asset declarations for high earners—reflects its focus on improved compliance and transparency.

These changes are particularly crucial for salaried individuals, HUFs, and those dealing with capital market instruments. Taxpayers are encouraged to thoroughly review the revised guidelines before filing to avoid errors or penalties. As the filing window for FY 2024–25 opens wider, it’s advisable to file early and double-check all information.

By leveraging technology and understanding regulatory changes, you can ensure hassle-free tax compliance and contribute to a more robust digital tax ecosystem.