ITR filing 2026: Big news for taxpayers. The income tax Department has launched online filing and the Excel utility for the ITR-2 form for the assessment year 2026-27, starting today, May 27th. Taxpayers whose income isn’t solely from salary can now start filing their income tax returns. Both online and offline methods are available on the e-filing portal. Additionally, taxpayers can prepare their returns by downloading the Excel utility.
When is the last date for ITR?
The final date for submitting ITR for the financial year 2025-26 is July 31, 2026. The cutoff for filing returns for the tax year 2026-27 is July 31, 2027. It’s crucial to remember that if your total annual income is below Rs 2.5 lakh, you are not required to file a return. However, individuals earning Rs 12 lakh or more must file an ITR. The good news is that, due to the increased Section 87A exemption under the new tax regime, these individuals won’t have to pay any tax at all.
Who needs to file ITR-2 and why is it important?
As per Chartered Accountant (CA) Santosh Mishra, ITR-2 is intended for individuals and Hindu Undivided Families who do not earn income from business or profession but have more complicated income sources. This includes salary and pension, income from multiple house properties, and short-term or long-term capital gains.
If your total income exceeds Rs 50 lakh, you should file ITR-2
Individuals with a total income over Rs 50 lakh are also obligated to file ITR-2, as they cannot utilize the simpler Form ITR-1. Likewise, those with non-resident and resident but not ordinary resident (RNOR) status must use forms like ITR-2 or ITR-3. CA Abhinandan Pandey noted that this form also enables you to report income from other sources, such as lottery winnings, horse racing, or legal gambling, as well as agricultural income exceeding Rs 5,000. Notably, if you are a director in a company or have investments in unlisted equity shares, you must file ITR-2, regardless of your income level.
CA Ajay Bagadia explains that filing ITR-2 can often be a bit complicated, and taxpayers frequently make mistakes in areas like residential status, capital gains reporting, and disclosure of foreign assets. Misidentifying short-term and long-term capital gains or failing to provide complete details correctly in Schedule 112A is a common mistake.
Similarly, resident taxpayers often forget to provide information about assets and bank accounts held abroad on Schedule FA, which can cause problems later. Selecting the wrong residential status, such as resident, non-resident, or RNOR, can disrupt tax calculations and prevent important things like filing Form 67, which is required to claim the foreign tax credit.
