ITR-2 for AY 2026-27 – who should file, capital gains, foreign assets, regime choice, due date, and the workflow that keeps your return out of notices.
ITR-2 is the income tax return form for individuals and HUFs that do not have income from a business or profession. For Assessment Year 2026-27 it remains the workhorse for salaried taxpayers with capital gains, multiple house properties, foreign assets, or unlisted shares. With the new tax regime as default, AIS-driven pre-fill expanding, and Schedule FA and Schedule VDA disclosures fully embedded, knowing exactly when ITR-2 is the right form is the first step to a clean return.
Who Should File ITR-2
- Resident individuals and HUFs with salary, pension, or family pension income above the ITR-1 threshold.
- Taxpayers with capital gains from listed or unlisted securities, mutual funds, property, or other capital assets.
- Owners of more than one house property.
- Taxpayers with foreign assets or foreign income, requiring Schedule FA.
- Holders of unlisted equity shares, including ESOPs of unlisted companies.
- Directors of companies (listed or unlisted).
- Non-residents and RNORs with Indian income above the basic exemption.
- Residents with agricultural income above ₹5,000.
Who Should Not File ITR-2
Do not file ITR-2 if you have income from a business or profession (use ITR-3 or ITR-4), or if you are a firm, LLP, or company (use ITR-5, ITR-6, or ITR-7 as applicable). Salaried individuals with simple income up to ₹50 lakh, one house property, and no capital gains should use ITR-1 Sahaj.
Key Schedules to Watch
- Schedule CG – capital gains, with separate sections for STCG and LTCG, and for grandfathered cost on listed equity.
- Schedule OS – other sources including dividends, interest, and lottery winnings.
- Schedule HP – multiple house properties with self-occupied, let-out, and deemed let-out distinctions.
- Schedule FA – foreign assets, foreign income, and signing authority in foreign accounts.
- Schedule AL – assets and liabilities where total income exceeds the prescribed threshold.
- Schedule VDA – virtual digital asset transactions taxed at 30% under Section 115BBH.
Regime Choice in ITR-2
The new tax regime under Section 115BAC is the default for AY 2026-27. Individuals filing ITR-2 (no business income) can simply choose the old regime within the return itself for that year, without filing Form 10-IEA. Standard deduction of ₹75,000 applies to salaried taxpayers under the new regime, basic exemption is ₹3 lakh, and Section 87A rebate covers tax on total income up to ₹7 lakh.
Due Dates for AY 2026-27
The standard due date for ITR-2 is 31 July 2026 for AY 2026-27. Belated returns can be filed up to 31 December 2026 with Section 234F fees up to ₹5,000 and interest under Sections 234A to 234C. Updated returns under Section 139(8A) are available for up to four years after the end of the assessment year, subject to additional tax.
Filing Workflow
- Download AIS, TIS, and Form 26AS from the income tax portal.
- Reconcile salary with Form 16, capital gains with broker statements, dividend with AIS.
- Compute capital gains separately for listed equity, debt mutual funds, property, and VDA.
- Fill foreign assets schedule with passport-level care – wrong disclosures trigger Black Money Act risk.
- Compute tax under both regimes; choose the lower one within the return.
- Validate, submit, and e-verify within 30 days via Aadhaar OTP, net banking, or demat OTP.
Conclusion
ITR-2 is the right form for individuals with everything except business income. The form looks complex but pays back the effort: clean Schedule CG and Schedule FA disclosures, a deliberate regime choice, and timely e-verification together protect against notices, fees, and Black Money Act exposure. For AY 2026-27, treat ITR-2 as a structured project starting in May and the 31 July deadline becomes routine.
