“Confused about returns? This up-to-date guide (post-Finance Act 2025) explains ITR-2 Eligibility AY 2025-26, key tax-rate tweaks, deadlines, and real stories.”
1. What Exactly Is ITR-2 and Why it matter for AY 2025 – 26
ITR-2 Eligibility AY 2025-26 : ITR-2 is the Income-tax Return for Individuals & HUFs who do not earn from “Profits & Gains of Business or Profession” but do have capital gains, multiple house properties, foreign assets/income, or income above ₹50 lakh
In plain English: if you dabble in the stock market, own more than one flat, or worked abroad last year—yet don’t run a business—ITR-2.
The Finance Act 2025 rewired how India taxes capital gains, crypto, and even the ITR calendar itself. Short-term equity gains now attract 20 % tax (up from 15 %), long-term gains pay 12.5 % but only above ₹1.25 lakh, and Schedule VDA makes crypto disclosure mandatory. The CBDT has also pushed the non-audit filing deadline to 15 September 2025 to let taxpayers cope with the revamped forms.
If you filed last year using ITR-1 or ITR-3, double-check: the new rules shove many investors, NRIs, and salaried folks firmly into ITR-2 Eligibility AY 2025-26 territory.
2. Finance Act 2025: the three game-changers
- Capital-gains overhaul – Equity STCG → 20 %; LTCG → 12.5 % with a higher ₹1.25 lakh exemption. Debt- and hybrid-fund rules realigned; indexation on pre-2023 debt funds goes.
- Schedule VDA – Every crypto/VDA transaction must be listed. Casual investors stick with ITR-2; frequent traders shift to ITR-3.
- Deadline extension – Non-audit returns now due 15 Sep 2025 (belated/revised by 31 Dec 2025).
3. ITR-2 Eligibility AY 2025-26 checklist (post-Finance Act 2025)
| # | Situation in FY 2024-25 | Eligible? | Caveat (new law) |
|---|---|---|---|
| 1 | Salary/pension + any capital gains above ₹1.25 L LTCG limit | ✔ | ITR-1 allowed only if LTCG ≤ ₹1.25 L |
| 2 | Two or more residential houses, rental income | ✔ | Nil business income |
| 3 | Crypto profits (occasional) | ✔ | Report via Schedule VDA |
| 4 | NRI with Indian rent/dividends | ✔ | Residential-status section crucial India Briefing |
| 5 | Agricultural income > ₹5,000 | ✔ | Threshold unchanged |
| 6 | Freelance, consultancy, shop receipts | ✘ | Needs ITR-3/4 |
| 7 | Frequent crypto/day-trading treated as business | ✘ | Needs ITR-3 |
Mnemonic: “SCARF-2-V” — Salary + Capital gains + Agri >5k + Rental >1 house + Foreign assets + ₹50 L income + VDA → ITR-2.
4. New capital-gains tax table (Finance Act 2025)
| Asset class | Holding period | STCG rate | LTCG rate* | Exemption |
|---|---|---|---|---|
| Listed equity & equity-MF | ≤ 12 m | 20 % | 12.5 % | ₹1.25 L p.a. |
| Debt-MF bought ≤ 31 Mar 23, sold ≥ 23 Jul 24 | ≤ 24 m | Slab | 12.5 % (no indexation) | — |
| Debt-MF bought ≥ 1 Apr 23 | Any | Slab | — | — |
| ETF (non-equity) | ≤ 12 m | Slab | 12.5 % | — |
*plus surcharge & cess.
5. Key dates for AY 2025-26
| Event | Due date | Note |
|---|---|---|
| ITR-2 utility release | 11 Jul 2025 | Common offline utility v1.0 |
| Latest utility patch | 18 Jul 2025 | Pre-fill enabled |
| Original return deadline | 15 Sep 2025 | Non-audit cases only |
| Belated/revised return | 31 Dec 2025 | u/s 139(4)/(5) |
| e-Verification | 30 Sep 2025 | 15 days if filed on/before 15 Sep |
6. Real-life scenarios (2025 edition) on ITR-2 Eligibility AY 2025-26
| Persona | Snapshot | Why ITR 2 eligibility AY 2025-26 applies |
|---|---|---|
| Abha, 32 Product manager | ₹28 L salary + ₹2 L STCG on equity funds | STCG taxed at 20 % → ITR-2 |
| Ravi, 45 Returned NRI | RSU gains abroad, ₹25 k foreign bank interest | Schedule FA + foreign tax credit → ITR-2 |
| Meera HUF | Rent from 2 flats, ₹3 L LTCG | Multiple houses + LTCG > ₹1.25 L → ITR-2 |
| Karthik, Dubai NRI | Indian dividends ₹1 L, rent ₹6 L | Non-resident with Indian income → ITR-2 |
| Aisha, 29 Part-time crypto investor | ₹90 k profit on Bitcoin | Schedule VDA fits in ITR-2 |
| Priya, influencer | ₹12 L fees + frequent crypto trades | Business income → not ITR-2 |
7. Step-by-step filing (updated screens)
- Log in → “File Return” → AY 2025-26 → ITR-2 Online.
- Pre-fill pulls salary, TDS, AIS, Schedule VDA, capital-gain grids. The Economic Times
- Schedule CG auto-calculates 20 %/12.5 % rates; check ₹1.25 L exemption.
- Crypto? Fill Schedule VDA: date, cost, sale value, TDS (1 %).
- Verify with Aadhaar-OTP/net-banking or DSC within 15 days.
8. Don’t trip over these 2025 pitfalls
| Mistake | Why it hurts (new law) | Quick fix |
|---|---|---|
| Treating equity STCG as slab-rate | Underpay 5 % | Use Schedule CG’s 20 % tab |
| Ignoring Schedule VDA | Penalty + 30 % tax + interest | Report every sell/swap |
| Using old ₹1 L LTCG exemption | Extra tax | Apply ₹1.25 L cap |
| Missing 15 Sep deadline | Late fee ₹1 k–₹5 k | File early; revise if needed |
| Skipping AIS/TIS match | Refund delay | Reconcile every figure |
9. FAQs (post-Finance Act 2025)
Q1. I have only ₹90 k LTCG from equity funds — can I still use ITR-1?
Yes. LTCG up to ₹1.25 lakh now fits in ITR-1; above that, ITR 2 eligibility AY 2025-26 kicks in.
Q2. Do I need to pay extra surcharge on the 20 % STCG?
Yes — normal surcharge slabs (10 %, 15 %, 25 %, 37 %) plus 4 % cess still apply.
Q3. I sold debt-fund units bought in 2022 after three years — indexation?
No. If sold on/after 23 Jul 2024, LTCG is flat 12.5 % without indexation.
Q4. I mine crypto; can I still file ITR-2?
Mining income counts as business → file ITR-3, not ITR-2.
Q5. What if I filed ITR-1 by mistake?
Use Section 139(5) to revise to ITR-2 before 31 Dec 2025.
10. Final word
Run the upgraded SCARF-2-V test: Salary + Capital gains + Agri > ₹5k + Rental > 1 house + Foreign assets + ₹50 L income + VDA profits — if you tick two or more boxes, ITR 2 eligibility AY 2025-26 is your safe harbour. File by 15 September 2025, verify in 15 days, and enjoy a refund-ready peace of mind. If you require any support reach out to Indefine.
