Step-by-Step ITR-2 Filing Guide for AY 2025-26 (With Excel Utility)

Are you filing ITR-2 for the Assessment Year 2025-26? Whether you have salary income, capital gains, or even income from cryptocurrency and online gaming, this article provides a detailed, beginner-friendly, and updated guide to file your ITR-2 using the Excel utility provided by the Income Tax Department.

🔍 Who Should File ITR-2 in AY 2025-26?

• Individuals/HUFs with income from salary/pension exceeding ₹50 lakh
• Capital gains income (short-term and/or long-term)
• Dividend income from shares or mutual funds
• Income from more than one house property
• Foreign income or foreign assets
• Income from virtual digital assets (VDAs), i.e., cryptocurrency or NFTs
• Director in a company or holding unlisted equity shares

🧩 Step 1: Download the Excel Utility from Income Tax Portal

1. Visit incometax.gov.in.
2. Login using your PAN and password.
3. Go to Downloads > Income Tax Return (ITR) Utilities.
4. Select ITR-2 | Assessment Year 2025-26.
5. Click on “Excel Utility” and download the ZIP file.

Once downloaded, extract the file and enable macros in Excel to proceed.

🧾 Step 2: Import Pre-filled Data into Excel Utility

1. Open the Excel utility and click on “Import Pre-filled Data”.
2. Login again and download the pre-filled JSON from the portal.
3. Import the JSON into the Excel utility to auto-populate basic fields like name, PAN, and bank details.

✅ Benefits of Pre-Filled Data:

• Faster filing process
• Minimizes manual entry errors
• Helps ensure consistency with AIS/TIS data

🏡 Step 3: Fill in Personal and Contact Information

• Name, PAN, Date of Birth
• Residential status (choose “Resident” if you stayed in India for 182+ days)
• Mobile number and Email ID
• Select New or Old tax regime (new regime doesn’t allow most deductions)

💼 Step 4: Enter Salary Income

• If TDS deducted: Check if salary details are auto-filled.
• If not: Manually enter employer name, address, TAN, and salary breakdown (basic salary, allowances, etc.)
• New regime offers a ₹50,000 standard deduction—ensure it is included.

📈 Step 5: Capital Gains Reporting

Short-Term Capital Gains (STCG)

• Enter sale value and acquisition cost of shares/MFs
• STCG on listed equity shares sold after 1 year is taxed at 15%

Long-Term Capital Gains (LTCG)

• Report LTCG on sale of assets held for 1+ year
• Taxed at 10% beyond ₹1 lakh exemption

Capital Loss Adjustment

• Current year capital losses can offset current year gains
• Carry forward losses up to 8 years (if filed on time)

💳 Step 6: Income from Other Sources

• Interest from savings accounts and FDs
• Dividend income
• Winnings from online games or lotteries (taxed at 30%)

🔎 Verify Data with AIS:

Check the AIS (Annual Information Statement) and update figures if you believe actual income is higher or lower than reflected.

📉 Step 7: Deductions and Exemptions

Under the new regime, most deductions are not allowed. However, a few are still valid:

• 80CCD(2) – Employer’s contribution to NPS (up to 10% of salary)
• 80JJAA – Additional employment generation
• Education loan interest (if opting old regime)

📦 Step 8: Declare Exempt Income and Assets

• Exempt income: gifts from parents, agricultural income
• If income exceeds ₹50 lakh: Declare assets and liabilities (e.g., jewelry, property, shares)

🌐 Step 9: Income from Foreign Assets & Tax Relief

If you have foreign income or assets, report them here. Use Schedule FA and claim relief under DTAA if tax is paid abroad.

📄 Step 10: Tax Computation and Final Check

• Review Schedule TTI (Total Taxable Income)
• Special tax rates: STCG (15%), game winnings (30%)
• Apply cess at 4%

📥 Step 11: Generate JSON File & Upload on Portal

1. Click “Validate” to check for errors
2. Generate JSON file
3. Go to income tax portal → e-File → Income Tax Return
4. Choose “Offline mode” and upload JSON file

✅ Step 12: Verify & Submit the Return

• Select appropriate verification method (Aadhaar OTP, EVC, DSC, etc.)
• Submit the return
• Download and save the ITR-V (Acknowledgment)

🧠 Key Tips to Avoid Errors While Filing ITR-2

• Double-check capital gains entries (match with broker statement)
• Ensure TDS entries match Form 26AS
• Use correct bank IFSC and account number for refunds
• Declare exempt income even if not taxable
• Don’t miss foreign income/assets declaration if applicable

📅 Important Due Dates for AY 2025-26

📌 Special Income Tax Rates in ITR-2 for AY 2025-26

Not all income is taxed at slab rates. In ITR-2, certain types of income attract special tax rates under different sections of the Income Tax Act. These must be reported carefully in their respective schedules (CG, OS, SI, etc.). Below is a comprehensive table of such income types:

📌 Quick Reference – Where to Report Special Income in ITR-2

🔍 ITR-1 vs ITR-2 vs ITR-3: Which Form is Right for You?

❓ Frequently Asked Questions (FAQs) on ITR-2 Filing AY 2025-26

1. Who should file ITR-2?

Individuals and Hindu Undivided Families (HUFs) who have income from salary, more than one house property, capital gains, foreign income/assets, or income above ₹50 lakh should file ITR-2. Business income is not allowed in this form.

2. Can salaried employees file ITR-2?

Yes. If a salaried employee has other income like capital gains (e.g., from mutual funds or shares), foreign assets, or is a director in a company, they must file ITR-2 instead of ITR-1.

3. Is ITR-2 applicable if I earned income from cryptocurrency?

Yes. Income from virtual digital assets (like Bitcoin, Ethereum, NFTs) must be reported in ITR-2 under Section 115BBH and taxed at 30%.

4. Can I claim deductions under Section 80C in ITR-2?

Only if you’re filing under the old tax regime. Under the new regime (Section 115BAC), deductions under 80C, 80D, 80G, etc., are not allowed except for 80CCD(2) (employer’s NPS contribution).

5. What is the last date to file ITR-2 for AY 2025-26?

For most individuals, the deadline is 31st July 2025. For taxpayers requiring audit, it’s 31st October 2025. Revised returns can be filed till 31st December 2025.

6. Do I need to report dividend income in ITR-2?

Yes, dividend income is taxable and must be reported under “Income from Other Sources” in Schedule OS. TDS may be deducted if the dividend exceeds ₹5,000.

7. I have capital gains from mutual funds – which schedule to use?

Report short-term and long-term capital gains in Schedule CG. Ensure correct tax rates: 15% for STCG under Section 111A, and 10% for LTCG above ₹1 lakh under Section 112A.

8. How do I report interest income from savings and fixed deposits?

All interest income (from savings account, FDs, recurring deposits) must be reported under “Income from Other Sources” in Schedule OS. Reconcile with your AIS for accuracy.

9. I received a gift from my parents. Do I need to declare it?

Yes. Declare exempt income (like gifts from specified relatives) in Schedule EI (Exempt Income). Though not taxable, non-reporting can create mismatches.

10. Can I file ITR-2 using a mobile or tablet?

No, ITR-2 (offline utility) must be filed using a desktop or laptop via Excel or JSON utility. The online portal supports ITR-1 & 4 easily, but for ITR-2, download and upload the JSON file manually.

📌 Final Words

Filing ITR-2 can seem overwhelming at first, but with a step-by-step approach, it becomes manageable. Whether you have capital gains, crypto income, or just multiple sources, using the Excel utility for AY 2025-26 simplifies the process. Always verify your entries, match with AIS and 26AS, and consult a tax professional if needed.

If you still have doubts or want professional help, feel free to reach out through our contact page on cmaknowledge.in.

Disclaimer: This guide is for educational purposes only. Always consult your CA or tax expert before final submission.