ITR-2 for AY 2026-27: 5 Costly Mistakes to Avoid

ITR-2 filing for AY 2026-27 is now open. If you have salary plus capital gains, rental income, or foreign assets, this is your form. Miss the July 31 deadline and you pay late fees plus lose key tax benefits.

Here's what happened: ITR-2 for Assessment Year 2026-27 (income earned in FY 2024-25) is live on the Income Tax e-filing portal right now.. ITR-2 is mandatory if you earned capital gains from stocks or mutual funds, rental income, or hold any foreign assets — even one SIP redemption counts.. The standard deadline is July 31, 2025. Filing after this triggers late fees up to ₹5,000 and you lose the right to carry forward capital losses..

What you should do: Check which ITR form applies to you — if you sold any mutual funds, stocks, or own a second property, you almost certainly need ITR-2, not ITR-1.. Gather your AIS (Annual Information Statement) and Form 26AS from the income tax portal now — mismatches between these and your return are the top reason for tax notices.. File before July 31, 2025 to avoid late fees and preserve your right to carry forward any capital losses against future gains..

Even one rupee of long-term capital gain from an equity mutual fund redemption disqualifies you from ITR-1. File ITR-2 to stay legally safe and avoid a defective return notice.