Pre-Filled Data in ITR-2 helps Salaried Taxpayers who Invest

In a major boost for individual taxpayers, the Income Tax Department has rolled out a fully online, pre-filled ITR-2 form for Assessment Year 2025-26, making the return filing process significantly faster and more convenient for those with diversified income. The development is poised to benefit professionals, salaried individuals, and investors, many of whom previously faced technical hurdles and lengthy procedures due to the complexity of reporting multiple income streams.

Seamless Filing, No More JSON Hassles

Until this year, taxpayers using the ITR-2 form—typically individuals and Hindu Undivided Families (HUFs) not having income from business or profession—had to complete their returns offline using Excel or Java utilities. They were then required to generate and upload JSON files to the e-filing portal, a painstaking and often confusing process. Starting now, the Income Tax Department’s revamped e-filing portal allows these taxpayers to access, complete, and submit a pre-filled ITR-2 entirely online. The system automatically populates critical details, including salary, interest, TDS, and capital gains, pulling data straight from employers, banks, and financial institutions.

Who Benefits?

The new online ITR-2 is designed for taxpayers with more complex financial arrangements than the simple ITR-1 form covers. Eligible users include those:

- With salary or pension income

- Owning multiple residential properties

- Having capital gains from shares, mutual funds, or property

- Holding foreign assets or earning overseas income

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Business owners and freelancers must continue to use the ITR-3 form, which as of now still requires offline preparation and manual JSON upload.

Advantages of the New System

Experts and taxpayers alike have welcomed the change, highlighting several key improvements:

- Elimination of Technical Obstacles: With no need to create or upload JSON files, tech-savvy skills and third-party help are no longer essential.

- Faster Process: Auto-populated information reduces data entry, allowing taxpayers to finish and submit their returns in less time.

- Fewer Errors: The risk of mistakes due to manual entries is much lower, leading to more accurate filings and reducing the need for post-filing corrections.

- Greater Accessibility: More individuals are empowered to voluntarily and independently comply with their tax obligations.

Extended Deadline Offers Breathing Room

In response to initial delays in releasing the updated utilities, the government has extended the tax filing deadline for individual taxpayers to September 15, 2025, pushing it forward from the usual July 31 cutoff. This extension grants filers additional time to acquaint themselves with the revamped system and review their pre-filled data.

Looking Ahead

While the move to a pre-filled online ITR-2 is a landmark improvement, those required to use ITR-3 must wait for similar updates, as that form remains restricted to offline methods for now. The Income Tax Department is expected to announce further digital upgrades in the near future.

Taxpayers are encouraged to check the e-filing portal for their auto-filled returns and take advantage of the new features before the September deadline, marking another step forward in the government’s ongoing push for digital-first, taxpayer-friendly reforms.

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