CBDT notifies Revised Income Tax Return Form ITR-2 [Read Notification]

The Central Board of Direct Taxes ( CBDT ) has officially notified the revised Income Tax Return ( ITR ) Form ITR-2 for the Assessment Year (AY) 2025–26, through Notification No. 43/2025 dated May 05, 2025.

ITR-2 can be filed by individuals or HUFs who:

—are not eligible to file ITR-1 (Sahaj)

Do not have income from profit and gains of business or profession and also do not have income from profits and gains of business or profession in the nature of:interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from a partnership firm.

Have the income of another person like spouse, minor child, etc., to be clubbed with their income – if income to be clubbed falls in any of the above categories.

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However, ITR-2 cannot be filed by any individual or HUF, whose total income for the year includes income from profit and gains from business or profession, and also who has income in the nature of: interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from a partnership firm.

Read More: CBDT Notifies Revised ITR-3 Form for AY 2025-26

Key Updates in the Notified ITR Form

The Income Tax Return (ITR) Form has been updated with several significant changes, including:

• Capital Gains Segregation: Schedule-Capital Gains now requires separate reporting for gains accrued before and after July 23, 2024, in line with amendments introduced in the Finance Act, 2024.
  
• TDS Code Disclosure: The relevant TDS section code must now be reported in Schedule-TDS.
  
• Asset and Liability Disclosure: Individuals with income exceeding ₹1 crore are required to fill out the Asset and Liability Schedule.
  
• Capital Gains on Unlisted Securities: Gains from unlisted bonds and debentures must be reported as short-term or long-term capital gains, depending on the date of transfer.
  

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• Buy-back Proceeds as Deemed Dividend: Effective October 1, 2024, buy-back proceeds are to be reported as deemed dividend income.
  
• Disability Certificate Reporting: Mandatory reporting of disability certificates to claim deductions under Sections 80DD and 80U.
  
• Expanded Deduction Reporting: Enhanced disclosure requirements for deductions under Section 80C, Section 10(13A) (HRA), and others.
  
• Buy-back Capital Loss Adjustment: Capital losses on share buy-back are allowable if the corresponding deemed dividend is reported as 'income from other sources', applicable post October

Read Also: ITR Forms Notified: Here’s What CAs Can Charge for Filing Returns by Category

To Read the full text of the Notifiaction CLICK HERE

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