ITR-2 for FY2024-25 Notified: Major Relief for ₹50 Lakh–₹1 Crore Income Group, Know the Key Changes

The Income Tax Department has officially notified the ITR-2 form for FY2024-25, bringing significant changes that impact a wide range of taxpayers — especially salaried individuals, pensioners, and investors. The notification was issued on May 5, 2025, and the new ITR-2 form is applicable retrospectively from April 1, 2025.

This update by the Central Board of Direct Taxes (CBDT) is crucial for those with income from salary or pension, or those who own more than one house property. Additionally, taxpayers who earn capital gains from selling property, shares, or mutual funds also need to file returns using this form.

✅ Major Relief for ₹50 Lakh to ₹1 Crore Income Earners

One of the most taxpayer-friendly changes in the new ITR-2 form is related to Schedule AL (Assets & Liabilities).
Previously, anyone earning over ₹50 lakh annually had to report all assets and liabilities. Now, this threshold has been revised to ₹1 crore, offering relief to a large section of upper-middle-income taxpayers.

This means those earning between ₹50 lakh to ₹1 crore per year will no longer need to report personal assets and liabilities, easing compliance and paperwork burden

📝 Mandatory TDS Section Disclosure Introduced

In another important change, taxpayers will now need to specify the section under which TDS (Tax Deducted at Source) has been deducted.
Earlier, it was enough to mention the TDS amount and the deductor’s details. Now, the exact section of the Income Tax Act, such as 194C, 194J, etc., must be clearly stated. This change adds transparency and aligns tax returns with actual deductions.

📊 Key Capital Gains Reporting Changes

The Capital Gains schedule has also been refined. While the full details weren’t specified in the release, tax professionals indicate that more granular data may be required when reporting gains or losses. This ensures better clarity for both taxpayers and the department.

Who Should File ITR-2?

If you fall into any of the following categories, the ITR-2 form is for you:

• You are a salaried employee or a pensioner with income above the basic exemption.

• You own more than one house property.

• You have capital gains (short-term or long-term) from shares, mutual funds, or property.

• You are an equity investor and don’t have income from business or profession.