ITR-2: For Capital Gains, NRIs & Higher Incomes
When your income is too varied for the simple Sahaj form — capital gains, more than two houses, foreign assets or income above ₹50 lakh — but you have no business income, ITR-2 is your form. Here's who files it for AY 2026-27.
File ITR-2 with a CAITR-2 is for individuals and HUFs who do not have business or professional income but have capital gains, income above ₹50 lakh, more than two house properties, foreign income or assets, unlisted shares, or are a company director or an NRI. The due date for AY 2026-27 is 31 July 2026.
Who can file ITR-1?
ITR-1 keeps things simple for salaried taxpayers. You can use it if all of these are true.
Resident individual
You are a resident and ordinarily resident (ROR) individual — not an NRI or RNOR.
Income up to ₹50 lakh
Your total income for the year does not exceed ₹50 lakh.
Salary, pension & interest
Income from salary or pension, and from other sources like savings and FD interest.
Up to two house properties
From AY 2026-27, income from up to two house properties can be reported in ITR-1.
Small capital gains
Long-term capital gains under Section 112A up to ₹1.25 lakh, with no losses to carry forward.
Limited agricultural income
Agricultural income of up to ₹5,000.
₹12,75,000 salary. Zero tax.
Under the new tax regime, a salaried resident individual can earn up to ₹12.75 lakh and pay nothing — the standard deduction and the Section 87A rebate do the work.
std. deduction
87A rebate
The ₹75,000 standard deduction trims your salary to ₹12 lakh; the Section 87A rebate clears the rest.
std. deduction
87A rebate
Pension is taxed just like salary — so the same ₹75,000 deduction and rebate make ₹12.75 lakh tax-free.
The fine print: figures assume the new tax regime (the default) and that salary or pension is your only income. The ₹75,000 standard deduction and the ₹12 lakh rebate under Section 87A are for resident individuals. Earn a little more and marginal relief softens the jump just above ₹12 lakh. You must still file your ITR-1. Check your exact tax in the calculator →
Who cannot file ITR-1
If any of these apply, ITR-1 is the wrong form — you'll usually move up to ITR-2, or ITR-3 if you have business income.
- You are an NRI or RNOR
- Total income above ₹50 lakh
- Any business or professional income
- Short-term capital gains, or LTCG above ₹1.25 lakh
- More than two house properties
- A director in a company, or holder of unlisted shares
- Foreign income, foreign assets or signing authority abroad
- Agricultural income above ₹5,000
Crossed a line above? Compare all ITR forms to find the right one — or let us pick it for you.
What's new in ITR-1 for AY 2026-27
A few welcome changes widen who can use the simpler Sahaj form this year.
Two house properties allowed
You can now report income from up to two house properties in ITR-1 — no need to switch to ITR-2 for a second home.
Small LTCG under 112A
Long-term capital gains from listed shares and equity funds up to ₹1.25 lakh can be reported in ITR-1, if there are no losses to carry forward.
Deductions via dropdown
Deductions under Sections 80C to 80U are selected from a dropdown with the exact clause, improving accuracy.
Aadhaar number mandatory
The Aadhaar Enrolment ID is no longer accepted — quote your 12-digit Aadhaar number.
ITR-1 vs ITR-2
Cross ₹50 lakh, add capital gains beyond the small-LTCG limit, a third house, foreign assets or a directorship — and you move from ITR-1 to ITR-2. With business income, it's ITR-3 or ITR-4 instead.
See how the forms compare →ITR-1 for AY 2026-27 is due 31 July 2026. File early to avoid the portal rush and any late fee. All due dates →
ITR-2 — FAQs
What is ITR-2?
ITR-2 is the income tax return for individuals and HUFs who do not have business or professional income but have capital gains, income above ₹50 lakh, more than two house properties, foreign income or assets, unlisted shares, or are a director or an NRI.
Who should file ITR-2?
Anyone with capital gains beyond ITR-1's small-LTCG limit, income over ₹50 lakh, three or more houses, foreign assets, a directorship, or NRI status — provided they have no business income.
Can an NRI file ITR-2?
Yes. NRIs and RNORs with taxable income in India but no business income commonly file ITR-2.
ITR-1 or ITR-2 — which one?
Use ITR-1 if you meet all its simple conditions. Move to ITR-2 once you have capital gains beyond the small-LTCG limit, income above ₹50 lakh, more than two houses, foreign assets, or a directorship.
Can I report crypto in ITR-2?
Yes. Gains from virtual digital assets are reported in Schedule VDA and taxed at a flat 30% under Section 115BBH.
What is the due date for ITR-2 for AY 2026-27?
31 July 2026 for individuals whose accounts do not require audit.
Capital gains or NRI return? We've got it
ITR-2 gets fiddly with capital-gains schedules and foreign income. Send your statements on WhatsApp — a Chartered Accountant computes your gains, picks the best regime, and files ITR-2 on time.
File my ITR-2 with a CAThis guide to ITR-2 is for AY 2026-27 (FY 2025-26) and is for general information only — not tax, legal or financial advice. Eligibility, capital-gains rates and conditions are governed by the Income-tax Act, 1961 and may change. Verify the correct form and tax treatment for your facts, or consult a Chartered Accountant, before filing.