ITR-2 should be filed by individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession but have income from other sources such as:
- Salary or pension income
- Income from more than one house property
- Capital gains (both short-term and long-term) from sale of shares, mutual funds, or property
- Income from other sources like interest, dividends, lottery winnings, gambling, etc.
- Foreign income or ownership of foreign assets
- Agricultural income exceeding ₹5,000
- Total taxable income exceeding ₹50 lakh
- Being a director in a company
- Holding unlisted equity shares
- Income from virtual digital assets (cryptocurrency, NFTs, etc.)
However, individuals or HUFs having income from business or profession, or income from partnership firms, or those with income to be clubbed from others such as spouse or minor child in relation to business or profession income, are not eligible to file ITR-2. Such individuals typically need to file ITR-3 instead. In summary, ITR-2 is suitable for salaried individuals, professionals without business income, those with multiple house properties, capital gains, foreign income, or income exceeding ₹50 lakh, but not for those with business or professional income.
