CBDT Notifies
ITR Form 2 For AY 2025–26
ITR Form 2 For AY 2025–26 You Must Know ITR Form 2 For AY 2025–26 You Must Know The Central Board of Direct Taxes (CBDT) has officially notified Income Tax Return (ITR) Form 2 for the Assessment Year (AY) 2025–26 through Notification No. 43/2025 dated 03.05.2025. ITR Form 2 For AY 2025–26 You Must Know This form is applicable for individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession.
In line with the amendments introduced by the Finance Act, 2024, several key changes have been incorporated into ITR Form 2 to ensure accurate income disclosure and improved tax compliance.
🔍 Who Should File ITR Form 2?
ITR-2 should be filed by:
- Individuals and HUFs not having income from business or profession
- Taxpayers with:
- Salary or pension income
- Capital gains
- Income from house property
- Foreign income or assets
- Income from other sources
🆕 Key Changes in ITR Form 2 for AY 2025 – 26
1. Capital Gains Split: Pre and Post 23.07.2024
To incorporate changes introduced by the Finance Act, 2024, Schedule-Capital Gains is now split into two parts:
- Gains up to 23rd July 2024
- Gains after 23rd July 2024
This bifurcation is crucial due to the altered tax treatment on certain capital assets post that date.
2. 🔻 Capital Loss on Buyback Allowed (Post 01.10.2024)
Taxpayers can now claim capital loss on share buyback (where shares were bought at a higher price than the buyback price) after 1st October 2024, provided the dividend income has been disclosed under “Income from Other Sources.”
3. 💰 Asset & Liability Threshold Revised
The reporting threshold for assets and liabilities has been increased to ₹1 crore of total income. ITR Form 2 For AY 2025–26 You Must Know
If your total income exceeds ₹1 crore, you’re now mandatorily required to disclose your:
- Immovable and movable assets
- Liabilities and loans
4. 📋 Enhanced Disclosure for Deductions
More granular reporting is now required for certain exemptions and deductions, including:
- Section 80C investments
- House Rent Allowance (HRA) under Section 10(13A)
- Other eligible deductions under Chapter VI-A
This change ensures better clarity and reduces the scope of incorrect deductions.
5. 🧾 Mandatory Reporting of TDS Section Codes
In Schedule-TDS, taxpayers must now specify the relevant TDS section code (e.g., 194A, 194C, 192) against each entry.
This aims to:
- Improve transparency
- Aid in TDS reconciliation
- Enhance compliance tracking
✅ Conclusion
ITR Form 2 For AY 2025–26 You Must Know The newly notified ITR Form 2 for AY 2025–26 brings structural changes and enhanced disclosures, making tax filing more accurate and aligned with the latest law amendments. ITR Form 2 For AY 2025–26 You Must Know Taxpayers falling under its applicability must take note of these changes while preparing their return, especially those having capital gains, buyback transactions, or income exceeding ₹1 crore.
📌 Pro Tip:
Start gathering necessary documents early—such as capital gain statements, TDS certificates, and deduction proofs—to ensure a smooth and error-free filing process.
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