ITR-2 Form Update: Important Tips for High-Income Taxpayers

New ITR-2 Form Released: What Taxpayers with Income Above ₹50 Lakh Must Know

The Income Tax Department has announced important updates for FY 2024-25

The Income Tax Department has officially notified the ITR-2 form for Assessment Year 2025-26 (Financial Year 2024-25). This form is important for individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession, but may have income from salary, capital gains, more than one house property, or foreign assets.

However, what makes the latest ITR-2 update different is the new disclosures and requirements, especially for those with annual incomes between ₹50 lakh and ₹1 crore or more.

Who Should File ITR-2?

Before understanding the changes, it’s important to know who needs to use ITR-2. You should file ITR-2 if:

You earn more than ₹50 lakh per year
You own more than one house property
You have capital gains income (from shares, property, etc.)
You have foreign income or assets
You are a director in a company
You hold unlisted shares

This form is not for those earning business income—they should use ITR-3 instead.

https://x.com/IncomeTaxIndia/status/1919329952702365855

What’s New in ITR-2 for FY 2024-25?

The latest form brings some key changes. Let’s understand them step-by-step:

1️⃣ Legal Entity Identifier (LEI) Mandatory for Big Refunds

If you’re claiming a tax refund of more than ₹50 crore, you will now need to provide a Legal Entity Identifier (LEI). This is a 20-digit global code used to identify large legal financial entities. While this may not apply to most individuals, it’s a big move for transparency in high-value transactions.

2️⃣ More Details on Political Donations (Section 80GGC)

If you’ve donated to a political party, you must now report:

The name of the party
The date of payment
The mode of donation (cash, cheque, UPI, etc.)

This aims to bring more transparency in political funding and tax deductions.

3️⃣ Clarity on Deductions for Disabled Dependents (Section 80DD)

Taxpayers claiming deductions under Section 80DD (for the care of a dependent with disability) will now need to give detailed information, such as:

Nature of the disability
Medical expenses incurred
Whether insurance or a maintenance scheme was used

This helps ensure the deduction is genuine and well-documented.

Deadline to File

The last date to file ITR-2 for this financial year is July 31, 2025.
Filing early helps avoid last-minute rush and errors.

These changes are not just technical updates—they reflect how the Income Tax Department is becoming more transparent, digital, and data-driven. If you’re in the ₹50 lakh+ income group, you should consult your tax advisor early to avoid missing out on deductions or making filing errors.