ITR-2 online utility released: Filing returns? Here's why you must verify your AIS and Form-26AS first

Check your AIS and Form-26AS before filing your ITR for assessment year 2025-26

The income tax (I-T) department on July 18 announced the release of ITR-2 online utility, paving the way for individual taxpayers to start filing their returns for the assessment year 2025-26 (financial year 2024-25).

While offline excel utilities for ITR-2 and ITR-3 - the key forms applicable to individuals and businesspersons - were released recently, online utilities with pre-filled data had not been enabled. Online utility for ITR-3 is yet to be released.

Now, individual taxpayers without any business income can start filing their returns using ITR-2. It is meant for salaried taxpayers or pensioners who are not eligible to file returns using ITR-1.

You cannot use ITR-1 if:

• Your total income exceeds Rs 50 lakh

• Your capital gains under section 112A exceed Rs 1.25 lakh

• You are a director in a company

• You own unlisted equity shares

• Have drawn foreign income during the financial year

• Own any foreign accounts or assets (including financial interest in any entity)

• If payment or deduction of tax has been deferred on ESOP

• If you have brought forward loss or loss to be carried forward under any head of income

If you meet any of these criteria, ITR-2 is the form for you.

Don't wait until Sep 15 to file returns 

The I-T department may have extended the due date for filing income-tax returns (ITR) for the financial year 2024-25 to September 15 but this is a good time to prepare for the annual exercise to avoid last-minute panic and mistakes.

Make sure you have all the documents in order. To begin with, you must access Form 26AS (tax credit statement) and your Annual Information Statement (AIS). These will ensure that you do not miss declaring relevant financial transaction, asset purchase or income earned during the year.

Understand AIS, Form-26AS

Accessing and verifying the two documents is crucial. Form 26AS, or tax credit statement, has details of property purchases, high-value financial investments, and TDS/TCS transactions executed during the year.

AIS, an extension of Form-26AS, is more comprehensive. It also provides details of savings account interest, dividend, rent received, purchase and sale transactions of securities/immovable properties, foreign remittances, interest on deposits and so on.

It also allows taxpayers to provide feedback on the transactions reported in case there are some discrepancies.

Access through e-filing portal 

Step 1: Log on to incometax.gov.in with your user ID (PAN) and password

Step 2: Click on the "Annual Information Statement (AIS)" tab in the main menu

Step 3: Click on  the "Proceed" button, which will redirect to AIS portal and click on AIS tile to view the Annual Information Statement

You can also go to the e-File menu after logging in, click on "Income Tax Return" and View AIS. Follow Step 3 to get the information.

Also read: ITR filing 2024–25: Used the wrong ITR form? Revise your returns to ensure refund credit

Compare AIS data with your records

You must go through the records of financial transactions and tax deducted at source (TDS) to ensure that all incomes are declared. Since the AIS and Form 26AS contain the complete history of a taxpayer’s transactions, nothing will go unnoticed.

For  instance, if you fail to report the sale of shares or mutual fund units or any other income, you could get a notice for non-disclosure when the I-T department processes your returns. AIS will display details of tax refunds, savings account interest or dividend earned, rent received, purchase and sale transactions of securities, immovable properties, foreign remittances and so on. Make sure that the ITR reflects all these details.

Also read: ITR filing 2025: Preparing to file income tax returns? Keep these crucial documents handy

Flag errors, duplications

AIS comes with a built-in grievance redressal mechanism. You need to first get on to the income tax e-filing portal and access the statement. You can verify the information and can report errors if any. For example, several chartered accountants have, this year, flagged a discrepancy in how mutual fund transactions are displayed in AIS - multiple reporting entities - registrar and transfer agents (RTAs) and depositories - have reported the same transaction, leading to duplicate entries in the AIS.

To raise a dispute on any figures mentioned in Part B [which contains income, tax deducted at source (TDS), specified financial transactions (SFT) details, etc] of the AIS, you need to:

- Click "Bulk feedback", select the transaction where you have spotted an error, and click on "continue"

- In the "Feedback type" dropdown menu, select the appropriate grounds of complaints and "submit"

- If your contention is accepted, AIS will reflect the value reported by the deductors as well as data modified after your feedback