ITR-2 Filing Made Easier with Pre-Filled Online Option: Major Relief for Salaried Taxpayers and Investors
In a significant update for income tax filers, the Income Tax Department has launched the online pre-filled ITR-2 form, simplifying the return filing process for thousands of taxpayers. This change eliminates the need for downloading and uploading cumbersome JSON files and brings a more user-friendly experience to those with complex income sources.
The move is especially beneficial for individuals earning from multiple sources like salary, rent, or capital gains from shares and property. Here’s everything you need to know about this major upgrade and who stands to benefit the most.
Until now, online filing with pre-filled data was only available for ITR-1 and ITR-4 forms. Taxpayers filing under ITR-2 or ITR-3 had to rely on Excel utilities and generate JSON files, which were then uploaded to the e-filing portal—a tedious and technical process for many.
With the latest change, ITR-2 is now available in online mode with auto-populated data
Who Should Use ITR-2?
The ITR-2 form is meant for individuals and Hindu Undivided Families (HUFs) who:
-     Earn salary or pension 
-     Own more than one house property 
-     Have capital gains from selling stocks, mutual funds, or real estate 
-     Receive foreign income or own assets abroad 
Importantly, ITR-2 is not for those with income from business or profession
This upgrade brings several advantages:
-     No more JSON file creation: A major technical barrier is removed. 
-     Faster filing process: All key information such as TDS, salary, capital gains, and interest income is pre-filled. 
-     Improved accuracy: Reduces the chances of manual entry errors. 
-     Convenience: More taxpayers can file returns on their own, without relying on third-party services. 
Normally, the Income Tax Department rolls out return filing utilities by April or May. However, this year saw an unusual delay of over 100 days
While ITR-2 can now be filed online with pre-filled data, ITR-3 still requires manual JSON upload. This form applies to:
-     Freelancers 
-     Traders (stock or crypto) 
-     Individuals with foreign assets 
-     Those earning from a business or profession 
The government is yet to announce when ITR-3 will also become available in an online pre-filled format.
This digital update to ITR-2 marks a big step forward in the Income Tax Department's efforts to simplify compliance and encourage self-filing. It’s especially helpful for salaried individuals and investors who have traditionally faced hurdles due to complex filing procedures.
Taxpayers are advised to log in to the official e-filing portal