ITR-2 Online Filing for AY 2024-25 Now Live — 9 Big Changes Every Taxpayer Must Know Before Filing

ITR-2 for AY 2024–25 is now live. Learn about the 9 major changes in income tax return filing — including crypto, capital gains, foreign assets, and refund rules. File smart with our expert guide

The Income Tax Department has enabled online filing for income tax return form ITR-2 on its e-filing portal. Taxpayers can now file their returns for the financial year 2024-25 using pre-filled data through the online utility, which many individuals find more convenient than the offline Excel utilities.

The department shared the update through its official handle on X (formerly Twitter) on Friday (July 18).

Earlier this month, on July 11, the Income Tax Department launched the Excel-based utilities for ITR-2 and ITR-3. These utilities allow taxpayers to download the forms, fill them offline and then upload them to file their returns.

ITR-2 is applicable for individuals and Hindu Undivided Families (HUFs) who have income from salary or pension, income from more than one house property, capital gains, or income from other sources—excluding business or professional income.

The online ITR-2 includes major updates this year, largely because of changes to the capital gains tax regime introduced for FY 2024-25.

Experts have pointed out that the new form requires more detailed disclosures:

Taxpayers must report long-term capital gains separately for periods before and after July 23, 2024, due to new indexation and tax rate rules.
Unlisted bonds or debentures must be declared distinctly, depending on their holding periods.
Buyback proceeds received on or after October 1, 2024, must be shown both under “Income from Other Sources” and as “Nil” consideration in the capital gains schedule.
The asset and liability disclosure threshold has been revised. Individuals with income above ₹1 crore must now declare their assets and liabilities. Earlier, this limit was ₹50 lakh.

While the Excel utilities for ITR-3 are available, taxpayers cannot yet file ITR-3 online with pre-filled data. Many individuals and tax professionals prefer the online option because it reduces manual data entry errors and saves time.

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The Income Tax Department has officially launched the ITR-2 online filing facility for Assessment Year (AY) 2024–25, marking a significant step in India’s digital tax compliance journey. Designed primarily for individuals and Hindu Undivided Families (HUFs) who have income from capital gains, foreign assets, or more than one house property, ITR-2 is among the most used forms during return filing season.

This year, however, the form comes with multiple key changes—some subtle, others significant—that every taxpayer must understand before hitting “Submit”. From enhanced disclosures to new sections on crypto, foreign income, and capital gains, overlooking these updates could lead to notice, reassessment, or even penalties.

Here’s a complete breakdown of the 9 crucial changes introduced in the ITR-2 for AY 2024–25, plus expert tips, eligibility clarifications, and step-by-step filing guidance.

You should file ITR-2 if you meet any of the following criteria:

You are an individual or HUF not having income from business or profession.
You have capital gains from sale of stocks, mutual funds, gold, or property.
You own more than one house property (including vacant/rented).
You have foreign income or hold foreign assets.
Your total income exceeds ₹50 lakh.
You are a director in a company or hold unlisted equity shares.

Note: Salaried individuals without any capital gains or foreign assets may continue filing ITR-1 or ITR-3 based on business income, but ITR-2 is mandatory for those with even ₹1 gain from sale of shares or crypto.

A separate schedule for “Virtual Digital Assets (VDA)” has been added. Taxpayers must now:

Disclose total sale and purchase of crypto/NFTs
Report exchange/platform name, token type, transaction IDs
Mention gains/losses, acquisition cost, and TDS deducted

Key Stat: Over ₹8,000 crore in crypto transactions reported last year are now under direct scrutiny via AIS and ITR-2.

Individuals with foreign bank accounts, equities, or properties must now:

Mention country of asset, ZIP/postal code, and IFSC code
Declare dates of acquisition/disposal, currency details, and exchange rates
Provide nature of income (dividend, interest, rent) separately

Non-disclosure under the Black Money Act can lead to ₹10 lakh penalty per asset.

If you’re an Agniveer Scheme participant, contributions to the Agniveer Corpus Fund are now deductible under the new Section 80CCH.

Report employer and employee contributions
Claim deduction without impacting your 80C limit

First-time inclusion in any ITR form for FY 2023–24.

Your capital gains (stocks, mutual funds, real estate) will now be pre-filled via AIS/TIS data, but you must verify and correct:

Purchase/sale date errors
Indexed cost mismatches
Dividend or bonus share adjustments

Pro tip: Always match your broker’s capital gain statement with Form 26AS and AIS data to avoid mismatch notices.

If you own more than one property, new disclosures are needed:

Municipal taxes paid
Home loan interest and principal split
Rent received vs deemed rent
Co-ownership details (PAN of co-owner, % share)

Rental income over ₹2.4 lakh/year now auto-flagged by portals like AIR.

The ITR-2 now requires you to select a validated bank account for refund issuance. Validation with pre-filled IFSC code and bank name is compulsory.

Use EVC/OTP or net banking for instant validation
Non-validated accounts will not receive refunds

Refunds will only be credited to the primary account listed, ensure it is active and linked to PAN.

Instead of lump-sum figures, taxpayers must now disclose:

Dividend income from Indian listed firms
Dividend from foreign stocks
Dividend from mutual funds separately
Details of TDS deducted, if any

📉 Tip: Reconcile your dividend earnings with Form 26AS & AIS to avoid tax notices.

If you’re declaring agricultural income over ₹5 lakh, details required include:

State/Location of land
Ownership details
Size in acres/hectares
Proof of income from sale of produce

Income above ₹5 lakh is used to determine applicability of surcharge even if exempt under Section 10(1).

Capital gains exemptions claimed under Sections 54, 54EC, 54F, etc., now require:

Date of asset purchase
Asset description
Amount invested
Proof of investment in bonds/property

False declarations could attract interest under Section 234C/D and penalty under Section 270A.

Late Filing Penalty: ₹1,000 to ₹5,000 (based on income)

Interest under Sections 234A/B/C

Loss of carry-forward benefit (capital loss, housing loan)

Possible scrutiny for mismatch with AIS/26AS

ITR-2 Online Filing for AY 2024-25 Now Live — 9 Big Changes Every Taxpayer Must Know Before Filing