The Income-Tax Department has enabled the Excel Utility for ITR-2 for assessment year 2026-27 (FY25-26) on its official e-filing portal. According to reports from Mint, the department announced this development through a social media post on X (formerly Twitter), stating that online filing and Excel Utility for ITR-2 for AY27 is now enabled on the e-Filing portal. This follows the earlier release of Excel Utility for ITR-1 (Sahaj) and ITR-4 (Sugam) forms on 17 May 2026. The move expands filing options and gives taxpayers flexibility in choosing between online and offline modes, allowing eligible taxpayers to begin filing returns for Financial Year 2025-26. As per Income Tax Union, the department officially enabled ITR-2 online filing and excel utility on May 27, 2025, making it available for students, pensioners, salaried individuals and others who are not required to undergo income tax audit.
Eligible taxpayers can now visit the official portal, download the forms, fill them out, generate a JSON file, and upload it online after proper verification and cross-checking of details. As reported by Mint, all ITR forms for AY27/FY26 have been notified by the tax department, allowing taxpayers to prepare their returns offline using the excel-based utilities before uploading them digitally. Taxpayers can file returns by logging into the e-filing portal at https://www.incometax.gov.in/ with their User ID and password, with all first-time users required to register using Aadhaar, PAN and other details. The due date for taxpayers not requiring audit is July 31, 2026, with filing early recommended to avoid last-minute portal issues and ensure faster processing of refunds. According to Income Tax Union, taxpayers can either use the offline excel utility or the online utility or ITR e-filing website to file their income tax return, providing multiple options for filing convenience.
ITR-2 is an income tax return form meant for Individuals and Hindu Undivided Families (HUFs) that do not earn income from business or profession. The form generally applies to salaried individuals, pensioners, investors, NRIs and taxpayers with multiple income sources. Taxpayers falling under the following categories can use ITR-2: income from more than one house property, capital gains from sale of shares, mutual funds or property, income from interest, dividends, lotteries and other sources, agricultural income exceeding ₹5,000, foreign income or foreign assets, Non-Resident Indians (NRIs) and Resident Not Ordinarily Residents (RNORs), and directors of companies and taxpayers holding unlisted equity shares. Individuals or HUFs earning income from profits and gains of business or profession cannot use ITR-2 and need to choose other applicable forms. According to Income Tax Union, ITR-2 can also be used to report income from other sources, including winnings from lotteries, racehorses, or other legal gambling activities, as well as agricultural income exceeding ₹5,000. Additionally, individuals who serve as directors in a company or have invested in unlisted equity shares must mandatorily file ITR-2, irrespective of their income level.
Taxpayers should note several changes this year in ITR-2 for AY 2026-27. The removal of reporting requirements for capital gains before and after July 23, 2024 aims to simplify disclosures and improve reporting efficiency. Additional transaction details are needed for donation deduction claims, while certain short-term and long-term capital gains reporting categories have been removed from schedules. Before beginning the filing process, taxpayers should keep the following documents available: bank statements and fixed deposit details, investment proof under Sections 80C, 80D and 80G. The process involves visiting the Income Tax e-filing portal, selecting e-File > Income Tax Return, choosing AY 2026-27, selecting ITR-2, verifying pre-filled details, choosing your tax regime and completing applicable schedules. According to Income Tax Union, resident taxpayers sometimes neglect mandatory reporting of foreign assets and overseas accounts in Schedule FA, which can lead to compliance issues. Similarly, incorrectly determining residential status—whether resident, non-resident, or RNOR—can result in incorrect tax computation and missed compliance requirements such as filing Form 67 for foreign tax credit.
For Tax Year 2026-2027, the ITR filing due date is July 31, 2027. However, if your total annual income is less than ₹2.5 lakh, you don't need to file an ITR. But if your salary income is up to ₹12.75 lakh, then you need to file an ITR, but thanks to enhanced Section 87A tax rebate under new tax regime, you won't need to pay any income tax. This includes income from salary or pension, income from multiple house properties, and income from capital gains or losses arising from the sale of investments or property (both short-term and long-term). According to Income Tax Union, another frequent mistake is improper handling of carry-forward and set-off of losses, including failure to fill Schedule CFL and Schedule BFLA correctly or missing the filing deadline required to carry forward capital losses. Additionally, taxpayers should ensure that personal details such as address and employer information are updated, especially if they have changed jobs or cities during the year. Overall, careful classification of income, accurate disclosure, and thorough reconciliation with official tax statements are essential to avoid errors in ITR-2 filing.
