New ITR-2 Form for FY 2024–25 Notified: Key Updates for ₹50 Lakh+ Income Taxpayers and Multi-Property Owners
Who Should File ITR-2 for FY 2024–25?
ITR-2 is for any individual or Hindu undivided family (HUF) that has not a business or profession but at the same time falls in one or more of the foregoing categories:
- Total income exceeds ₹50 lakh in a financial year 2024-25.
- Ownership of more than one house property.
- Capital gains income (from sale of land, shares, mutual funds, etc.).
- Foreign income or foreign assets, including investments or bank accounts.
- Directorship in companies or ownership of unlisted equity shares.
- Clubbing of income from a spouse or minor child where the source is other than business or profession.
This form is not applicable for individuals earning solely from salary, one house property, and interest income below ₹50 lakh (such individuals should file ITR-1).
Major Changes Introduced in ITR-2 for FY 2024–25
1. Expanded Asset and Liability Disclosure for High Net-Worth Individuals (HNIs)
One of the standout changes is the granular reporting requirement for individuals with total income above ₹50 lakh. These taxpayers must now disclose:
Precise asset-wise details of movable and immovable property, such as:
- Residential or commercial properties, with acquisition cost, address, and ownership share.
- Vehicles (cars, boats, aircraft), including make, model, and purchase date.
- Jewelry, bullion, artworks, and antiques with acquisition cost.
- Financial assets like fixed deposits, mutual funds, stocks, and bonds.
- Home loans, vehicle loans, and other secured or unsecured debts.
- Credit card liabilities over a defined limit.
This detailed balance sheet-like section improves the government's insight into taxpayers’ wealth accumulation and helps track income-to-asset inconsistencies.
2. Mandatory LEI (Legal Entity Identifier) for Refunds Above ₹50 Crore
In line with global financial reporting norms, the CBDT has
made it mandatory for large-value refund claimants (₹50 crore or more)
to quote a Legal Entity Identifier (LEI).
- The LEI is a 20-character alphanumeric code issued by authorized Local Operating Units (e.g., Legal Entity Identifier India Ltd).
- It uniquely identifies legal entities participating in financial markets and helps regulators monitor financial transactions.
This step adds a layer of transparency and accountability, especially in cases involving high-net-worth individuals or institutional refund claims.
3. Detailed Disclosure of Donations and Political Contributions
If you’ve donated to political parties or electoral
trusts and wish to claim deductions under Section 80GGC, then ITR-2
now requires you to declare:
- Amount and recipient of donation.
- Mode of payment—cash donations are not eligible; only digital or cheque payments qualify.
- Date of donation and confirmation details (receipt or acknowledgement).
This provision aims to enhance transparency in political funding and ensure that only legitimate, traceable contributions receive tax benefits.
4. Comprehensive Reporting for Disabled Dependents (Section 80DD and 80DDB)
Taxpayers claiming deductions under:
- Section 80DD (maintenance and treatment of a dependent with disability), or
- Section 80DDB (treatment of specified diseases for dependents)
- must now provide:
- Nature of disability or disease, along with medical certification.
- Relationship with the dependent.
- Expenditure incurred and deduction claimed, supported by invoices or medical bills.
These stricter disclosure norms are expected to curb misuse and ensure the rightful utilization of taxpayer funds for genuine needs.
5. Granular Capital Gains Reporting
The new ITR-2 requires precise breakdowns of short-term
and long-term capital gains based on:
- Asset class (equity shares, mutual funds, property, bonds, etc.).
- Holding period and indexation, wherever applicable.
- Purchase and sale details, including dates, consideration received, and related costs (brokerage, stamp duty, etc.).
For example:
- Equity shares held for less than 12 months fall under STCG, and those beyond that attract LTCG.
- For property, assets held for more than 24 months are considered long-term.
The segregated format helps compute accurate taxes and pre-populates the correct sections via AIS and TIS integration.
Digital Enhancements and Auto-Population of Data
Along with structural changes, ITR-2 for FY 2024–25 supports
better integration with the Annual Information Statement (AIS) and Taxpayer
Information Summary (TIS), enabling:
- Pre-filled fields such as TDS, SFT transactions, salary, interest income, and dividends.
- Improved cross-verification of high-value transactions, like credit card spends or mutual fund redemptions.
- Minimizing manual errors and ensuring smoother filing.
Taxpayers are encouraged to verify their AIS data regularly and report mismatches through the portal to avoid future notices.
Implications for Taxpayers and Compliance Strategy
For taxpayers with multiple income sources, foreign assets,
or large investments, these disclosures demand:
- Property documents, mutual fund statements, shareholding proofs.
- Foreign asset disclosures (if applicable).
- Medical bills or certificates for deduction claims.
Non-disclosure or misreporting can invite notices, reassessments, or even penalties under Section 270A of the Income Tax Act.
Conclusion: Prepare Ahead for a Smoother Filing Experience
The ITR-2 updates for FY 2024–25 reflect the Income Tax
Department’s dual goals—simplify filing for honest taxpayers while intensifying
scrutiny on high-value disclosures. If your income crosses ₹50 lakh or you
own multiple properties or investments, ensure your filings are well-documented
and accurate.
Starting early, verifying AIS/TIS reports, and consulting professionals can go a long way in ensuring peace of mind and compliance with the law.
🔍 Bonus Tip:
Use the Income Tax Department's updated e-filing utility
(available via https://www.incometax.gov.in)
to check if your ITR form is correctly selected and pre-filled.
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