If you sold mutual funds, stocks, or a property anytime this year, your tax return just got a little more specific. ITR-2 is now open for this year's tax return (AY2026-27), and filing the wrong form — say, ITR-1 when you should have filed ITR-2 — can land you a tax notice even if you owe nothing extra.
ITR-1 is for simple salaried folks with one house and no capital gains (the profit you make when you sell an investment). The moment you have any gains from selling mutual funds or shares, or if you own two properties, ITR-1 won't cut it.
What this means for you
- Redeemed even one mutual fund SIP this year? You likely need ITR-2 — check before assuming ITR-1 is fine.
- Filing the wrong form isn't just a mistake — it can trigger a tax notice that takes months to resolve.
- The deadline is July 31. That's close enough to start now, not in July.
What you can do
- Log into the income tax portal and check your AIS — your Annual Information Statement, a free summary the tax department prepares that shows every transaction they already know about, including your mutual fund redemptions.
- If your broker or mutual fund app had any sell transactions this year, download your capital gains statement now and keep it ready for filing.
You're ahead just by knowing which form to use — most people don't check until the last week of July.
Grow with clarity 🌱