
Taxpayers eligible for filing ITR-2 for AY 2026-27 can now do so on the Income Tax e-filing portal. According to reports from The Economic Times, this form can be filed by individuals/HUFs (residents & non-residents) having salary, multiple house properties, capital gains, or other sources (including income taxable at special rates), but no income from any business or profession. The tax department has simplified the filing process by auto-selecting certain options - under 'filing status', 'Filed u/s 139(1)' will be auto-selected, and as the new tax regime is the default regime now, 'No' will be auto-selected for the query asking 'Do you wish to exercise the option u/s 115BAC(6) of opting out of the new tax regime'. Taxpayers can mark 'yes' if they want to opt for the old tax regime.
While filing ITR-2 for the first time or at any time by oneself can be daunting with around 26 sections in this form, taxpayers are required to fill or review only those sections that apply to them. As reported by The Economic Times, the form includes sections for co-owner details, tenant details, rent, interest, pass-through income, and other related information. For capital gains from more than one capital asset of the same type, taxpayers need to make a consolidated calculation according to the tax department's instructions. However, in case of transfer of land/building, they need to enter the calculation towards each land/building separately. The schedule also requires taxpayers to enter details of their short-term and long-term capital gains/losses for all types of capital assets owned.
In Schedule SPI, taxpayers need to add the income of specified persons (e.g. spouse, minor child) that is includable or required to be clubbed with your income as per Section 64, according to the Income-tax Department. As reported by The Economic Times, in Schedule Foreign Source Income (FSI), taxpayers need to report the details of income which is accruing or arising from any source outside India. This schedule is available for residents only. The tax department has also clarified that for capital gains from more than one capital asset of the same type, taxpayers need to make a consolidated computation of capital gains in respect of all such capital assets of the same type.
For business owners, the transition to the new Income Tax Act 2025 presents additional compliance challenges. As reported by The Economic Times, while filing current returns under the old Act (1961), businesses are already operating under the new Act (2025) for income earned from April 1, 2026 onwards. The new Act consolidates sections - Section 26 for business income charge, Section 27 for computation, and Section 58 for presumptive taxation - while maintaining the same underlying mechanics. Key changes include new TDS sections (Section 392 for salary TDS, Section 393 for other TDS), updated depreciation provisions (Section 33 replacing Section 32), and renumbered sections across the entire tax framework. Business owners must ensure all transactions dated on or after April 1, 2026 are processed under the new section numbers to avoid compliance errors.
Individuals and Hindu Undivided Families (HUFs) are required to file income tax returns (ITR) if their total taxable income before the applicable exemptions and deductions exceeds the basic exemption limit. Even if you're exempt, file a return if you have a refund due, or you need to apply for a loan, passport or visa. Returning Indians face new tax filing complexities as foreign retirement accounts now necessitate the more detailed ITR-2, moving away from the simpler ITR-1. Tax authorities are leveraging global information exchange to track overseas assets and income, with accurate reporting in Schedule FA being crucial to avoid penalties under the Black Money Act. Taxpayers must diligently disclose all foreign holdings, including dormant accounts and employee stock options, to ensure compliance.