Income Tax Return: Complete Guide to ITR-2 Form & New Changes This Year

The Income Tax Department recently made the ITR-2 form live for this financial year. Taxpayers can now file their returns online using this form on the official e-filing portal.

On July 18, the department shared this update on social media platform X. Remember, different taxpayers need to use different ITR forms based on their income sources and other factors. So, picking the right form is crucial for accurate filing.

Who Should Use ITR-2 Form?

The Income Tax Department has introduced several important changes in ITR-2 this year. Let’s first understand who should use this form:

Taxpayers earning salary income with an annual income above ₹50 lakh (but no income from business or profession).

Those with more than one house property.

Individuals having capital gains.

Taxpayers with income from abroad or foreign assets.

People earning from cryptocurrency.

Company directors.

Those holding investments in unlisted shares.

Six Major Changes in ITR-2 Form This Year

1. 1. Reporting Capital Loss from Share Buyback
      If you have a capital loss due to participating in a company’s share buyback, you can now report it in ITR-2. Dividend income from those shares must be shown under ‘Income from other sources’.

   2. Dividend Income Disclosure
      Dividend income from shares must be declared in the ITR-2 form. Reporting gains or losses from share buyback participation is mandatory.

   3. Transfer of Real Estate
      If you have sold land or buildings, full details must be provided to claim indexation benefits on capital gains. This applies only if the property was bought and sold before July 23, 2024.

   4. Declaring Assets and Liabilities for Income Above ₹1 Crore
      Taxpayers with total income over ₹1 crore must declare all assets and liabilities as of the financial year-end. Previously, this limit was ₹50 lakh.

   5. Capital Gains Information Update
      Following changes announced in the 2024 Budget, detailed capital gains information is now required. Indexation benefits differ for properties bought and sold before and after July 23, 2024.

   6. New TDS Information Section
      A new column has been added to report the section under which TDS (Tax Deducted at Source) was deducted from the taxpayer.