The Central Board of Direct Taxes (CBDT) has officially notified the Income Tax Return Form-2 (ITR-2) for the financial year 2024-25, effective retrospectively from April 1, 2025.
This form is particularly pertinent for salaried individuals, pensioners, and those with income from multiple properties or capital gains. Notably, the updated ITR-2 introduces several changes that offer substantial relief to taxpayers earning between ₹50 lakh and ₹1 crore annually.
Key Benefits for Rs. 50 Lakh–Rs. 1 Crore Income Bracket
1. Increased Asset and Liability Reporting Threshold
Previously, individuals with income exceeding ₹50 lakh were mandated to disclose detailed information about their assets and liabilities. The revised ITR-2 has now elevated this threshold to ₹1 crore. This adjustment simplifies the filing process for many taxpayers within this income range, reducing the compliance burden.
2. Enhanced Clarity in Capital Gains Reporting
The new form introduces a more detailed bifurcation of capital gains, distinguishing between various asset classes and holding periods. This granularity aids taxpayers in accurately reporting their gains and ensures better compliance with tax regulations.
3. Mandatory Disclosure of TDS Sections
Taxpayers are now required to specify the sections under which Tax Deducted at Source (TDS) has been applied. This addition promotes transparency and facilitates easier cross-verification of TDS claims, ensuring that taxpayers receive appropriate credit for taxes already deducted.
