Step-by-Step Guide to Filing ITR-2 Online
- PRITI SIRDESHMUKH
- Oct 1
- 8 min read
Filing ITR-2 online for AY 2025-26 requires careful preparation, accurate reporting of income sources, and proper bank account validation. Individuals and HUFs with capital gains, multiple properties, foreign assets, or directorships must follow the correct process to ensure smooth filing and timely refunds. This guide provides a detailed, step-by-step overview, covering all schedules, bank account sections, e-verification methods, and common issues, while highlighting how services like TaxBuddy can simplify the filing process and minimize errors.
Filing ITR-2 online involves collecting required documents, logging in to the Income Tax portal, selecting the correct assessment year and form, filling relevant schedules, validating bank accounts, and completing e-verification. Following these steps carefully ensures error-free filing, faster refunds, and compliance with the latest income tax regulations, including pre-validated bank accounts for refund processing.
Table of Contents
Preparation and Required Documents
Before beginning the process of filing an Income Tax Return (ITR), it is essential to prepare thoroughly by collecting all relevant documents and financial information. Accurate filing begins with having the right data at hand, as missing or incomplete information can lead to errors, delays, or even scrutiny from the Income Tax Department. For salaried individuals, the starting point is typically Form 16, issued by the employer, which summarizes the total salary earned, tax deducted at source (TDS), and other relevant details. Alongside this, Form 26AS, which reflects all TDS credits and advance tax payments, should be reviewed carefully to ensure the amounts match your records. Bank statements for the financial year are necessary to account for interest income, dividend payments, and other taxable income. Investment proofs, such as those for tax-saving instruments under Section 80C, premiums paid under Section 80D for health insurance, and interest on education loans under Section 80E, must also be gathered, along with receipts for any other eligible deductions.
For self-employed professionals and business owners, the documentation is more extensive. Profit and loss statements and balance sheets provide a clear picture of business income and expenses. GST statements and other compliance-related documents are essential for reporting revenue accurately. Expense records, invoices, and payment receipts help substantiate deductions and ensure a comprehensive return. Collecting these documents in advance allows taxpayers to avoid last-minute errors and reduces the likelihood of filing mistakes that could delay refunds or trigger notices.
Using platforms like TaxBuddy can significantly simplify this preparation process. TaxBuddy offers structured checklists that guide users through every required document, ensuring nothing is overlooked. The platform also provides prompts for specific deductions or income types, helping both salaried individuals and business professionals complete their ITR filing efficiently and accurately. This organized approach not only saves time but also enhances confidence in submitting a fully compliant return..
Login and Start a New Return
Before beginning your ITR filing, it is essential to gather all relevant financial documents, such as Form 16, bank statements, interest certificates, investment proofs, and TDS details. Once these documents are ready, you can access the Income Tax Department’s e-filing portal or a reliable platform like TaxBuddy. Use your PAN and registered password to log in securely, ensuring that your credentials are accurate and up to date to avoid login issues. After logging in, you will find an option to start a new ITR filing. Selecting this option opens the ITR dashboard, displaying all relevant forms, prompts, and instructions tailored to your profile. The interface is designed to guide you step by step, offering clear prompts for each section, such as personal details, income sources, deductions, and taxes paid. This organized approach ensures that taxpayers can confidently begin the filing process, reducing errors and avoiding confusion during the preparation of their return.
Select Assessment Year and Correct ITR Form
Selecting the correct Assessment Year and the appropriate ITR form is a critical step to ensure accurate filing. For income earned during the Financial Year 2024-25, the corresponding Assessment Year is 2025-26. Based on your income type, employment status, and taxpayer category, the portal or TaxBuddy will recommend the correct ITR form. For instance, salaried individuals with income from salary, interest, or one house property usually file ITR-1 or ITR-2, whereas self-employed professionals or business owners might need to file ITR-3 or ITR-4 depending on their income structure. Platforms like TaxBuddy simplify this process by automatically identifying the suitable ITR form based on your profile and uploaded documents. This automation reduces the chances of selecting an incorrect form, which can lead to rejections or delays in processing. Ensuring the right form also guarantees compliance with the Income Tax Act, helping you avoid penalties, discrepancies, or notices from the tax authorities.
Filling Schedules and Bank Account Section
After selecting the appropriate ITR form based on your income sources and eligibility, the next step is to carefully fill in all relevant schedules. These schedules capture income from various heads such as salary, house property, capital gains, business or profession, and other sources like interest or rental income. Each schedule requires accurate reporting of figures, supported by documents like Form 16, bank statements, property details, and investment proofs. Alongside reporting income, taxpayers should also include eligible deductions under sections such as 80C (investments in PF, LIC, or ELSS), 80D (health insurance premiums), and 80E (education loan interest), among others. Properly claiming these deductions ensures that your taxable income is correctly calculated, maximizing your tax benefits while remaining fully compliant.
Equally important is completing the bank account section accurately. Refunds from the Income Tax Department are credited directly to the bank account provided in the ITR, so providing the correct account number, IFSC code, and account type is essential. Incorrect or incomplete bank details can lead to delays or rejection of refunds. Platforms like TaxBuddy simplify this process by offering guided input fields and real-time validation, which helps prevent common mistakes, ensures that mandatory schedules are filled correctly, and reduces the risk of discrepancies that could delay refunds.
Verification and Submission
Once all schedules have been completed and reviewed for accuracy, the next crucial step is to verify the Income Tax Return. Errors in income details, deductions, or bank account information can result in processing delays, miscalculations, or even notices from the Income Tax Department. Verification confirms that all data submitted is correct and authentic.
Taxpayers have multiple options for verification. Electronic verification methods include Aadhaar-based OTP, net banking, or using a digital signature if available. Alternatively, one can print the ITR-V, sign it, and send it to the Central Processing Centre (CPC) within the stipulated timeframe. Timely verification is essential, as unverified returns are considered incomplete and are not processed for refunds or assessment.
Platforms like TaxBuddy streamline the verification process by enabling seamless e-verification directly through the app, offering step-by-step guidance for each verification method. Users also receive instant confirmation once the return is successfully submitted and verified, ensuring peace of mind and faster initiation of refund processing.
Latest News and Updates
Staying updated on the latest news and changes in tax regulations is crucial for every taxpayer. Tax rules, ITR forms, and filing deadlines are periodically revised by the Central Board of Direct Taxes (CBDT) to improve compliance, accuracy, and transparency. For the Financial Year 2024-25, the ITR filing deadline for individuals and non-audit assessees has been extended from the original date of July 31, 2025, to September 15, 2025. This extension gives taxpayers additional time to prepare their returns, verify TDS credits, gather necessary documentation, and ensure accurate filing, ultimately reducing the risk of errors and the need for subsequent revisions.
Digital platforms like TaxBuddy play an important role in keeping taxpayers informed about these changes. They provide timely notifications about updated forms, new filing procedures, and revised deadlines. By staying connected with such platforms, taxpayers can proactively manage their filings, avoid last-minute rushes, and prevent penalties or delays in refund processing. Regular updates also ensure that users are aware of system enhancements or new compliance requirements introduced by the Income Tax Department, making the filing experience smoother and more reliable.
Bank Account Section: Common Issues and Resolutions
Errors in the bank account section can result in delayed refunds. Common issues include incorrect account numbers, mismatched IFSC codes, or selecting an unsupported account type. To resolve these, double-check the details with bank statements, ensure the IFSC code matches the bank branch, and confirm the account is active. TaxBuddy provides error-checking tools and guided instructions to validate account details before submission, minimizing the risk of refund delays and ensuring smooth processing.
Conclusion
Accurate ITR filing requires careful preparation, correct form selection, proper schedule completion, and verified bank account details. Using reliable platforms like TaxBuddy can simplify the process, reduce errors, and ensure timely filing and refund processing. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options? TaxBuddy provides both options to cater to different taxpayer needs. You can choose self-filing, where AI-driven tools guide you through the entire process for an error-free return, or opt for expert-assisted filing, where professionals review and file your ITR on your behalf. This ensures flexibility for beginners as well as those seeking professional support.
Q2. Which is the best site to file ITR? TaxBuddy is one of the top platforms for ITR filing in India, offering a seamless experience with AI-guided forms, expert support, and accurate auto-filled details from Form 26AS and other sources. It combines ease, accuracy, and compliance, making it suitable for both salaried individuals and business professionals.
Q3. Where to file an income tax return? ITRs can be filed online through the Income Tax Department e-filing portal or via reliable platforms like TaxBuddy, which provides a guided interface, auto-filled data, and instant calculation of tax liabilities. Filing online ensures faster processing of returns and refunds.
Q4. What documents are required for filing ITR for FY 2024-25? Key documents include: Form 16 (for salaried individuals), Form 26AS (TDS details), bank statements, interest certificates, investment proofs for deductions (Section 80C, 80D, etc.), rent receipts for HRA claims, and details of capital gains or other income. TaxBuddy allows you to upload these documents directly and auto-fills relevant sections.
Q5. Can I file a revised return if I make a mistake in my ITR? Yes. Under Section 139(5), taxpayers can file a revised return if there is an error or omission in the original ITR. TaxBuddy supports revised filing, ensuring mistakes are corrected without affecting your original submission timeline.
Q6. How do I verify my ITR after submission? ITR verification can be done through e-verification methods like Aadhaar OTP, net banking, or by sending a signed physical ITR-V to CPC Bengaluru. TaxBuddy provides a step-by-step guide for hassle-free e-verification, which is mandatory for processing refunds.
Q7. What happens if I enter incorrect bank account details? Incorrect bank account details may cause delays in receiving refunds. The Income Tax Department may either reject the refund or request correction. TaxBuddy ensures bank details are accurately captured, reducing errors and enabling smooth refund crediting.
Q8. Can TaxBuddy help with filing ITR for business professionals? Yes. TaxBuddy caters to salaried, self-employed, and business professionals. It supports multiple ITR forms, TDS auto-filling, and deduction calculations, ensuring compliance with all relevant sections like 44ADA for professionals and 44AB for audit cases.
Q9. Is it mandatory to e-verify the ITR for processing refunds? Yes. E-verification is required by law to validate your return. Without verification, the return is considered invalid, and refunds or adjustments will be delayed. TaxBuddy provides easy e-verification options directly through its platform.
Q10. How can I track my refund status after filing? Refunds can be tracked on the Income Tax Department portal using PAN and assessment year details. TaxBuddy offers a real-time refund tracking feature that updates users automatically once the refund is processed.
Q11. Are there penalties for late filing of ITR? Yes. Filing after the due date may attract penalties up to ₹5,000 under Section 234F, along with interest on unpaid taxes. Using TaxBuddy helps avoid last-minute delays by sending timely reminders and guiding users through accurate filing.
Q12. Can I use TaxBuddy to file ITR using both the utility and JSON method? Absolutely. TaxBuddy supports filing through ITR utility and JSON files, allowing users to choose their preferred method. The platform auto-generates the required files, validates them, and ensures smooth submission to the Income Tax Department.
Comments