ITR 2 Form - What is ITR-2 Form? Eligibility & How To File ITR-2 Online?
The Indian Income Tax Department has classified taxpayers into different categories based on their annual income, source of income, and other relevant factors. Each category has a specific form that must be used for filing income tax returns.
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The Indian Income Tax Department has classified taxpayers into different categories based on their annual income, source of income, and other relevant factors. Each category has a specific form that must be used for filing income tax returns. For individuals and Hindu Undivided Families (HUF), the applicable form is ITR Form 2. The deadline for filing ITR 2 is 31st July of each financial year.
It is essential to accurately complete the ITR 2 form to prevent any errors or potential consequences. ITR 2 refers to Income Tax Return Form 2.
What is ITR-2?
The ITR 2 form is specifically designed for individuals and Hindu Undivided Families (HUFs) who have income gains from various sources such as capital gains from one or more properties, rental income, or income from other sources. It does not encompass income from a business or profession. However, starting from the annual year (AY) 2019-20, the director of a listed or unlisted company must file the ITR 2 form for businesses.
Regarding the guidelines for AY 2020-21, it is advised to disclose any additional investments made between April 1, 2020, and June 30, 2020. The outbreak of COVID-19 has also resulted in an extension of the ITR filing deadline from March 31 to June 30, 2020.
Who Can File ITR 2 Form Online For AY 2022-23?
ITR 2, which stands for Income Tax Return Form 2, is applicable to all individuals and Hindu Undivided Families (HUFs). Individuals & Hindu undivided families (HUFs) who do not have income from business or profession can file ITR 2. If you have income from the following sources, it is necessary to file ITR-2:
- Salary/pension income
- Income from one or more house property
- Income from short term capital gain (STCG) or long term capital gains (LTCG) or losses from the sale of property or investment
- Income derived from sources other than salary, such as lottery winnings, should be distinguished from the legal definitions of gambling and wagers placed on horse races.
- Agricultural income of more than Rs. 5000
- Foreign income or assets
- Non-resident or a resident not ordinarily resident
- Company direct
Structure of ITR 2 Form
Following are divided sections of ITR 2 form as below
1) Part A of ITR 2: This section will require general details such as personal data.
2) ITR 2 Form Schedule S: This section will ask for the details of your income obtained as a salary.
3) ITR 2 Form Schedule HP: This section is all about details of your income obtained from one or more house properties (indicate ownership of the property)
4) ITR 2 Form Schedule CG: This section asks for the detailed calculation of your income from capital gains (from sale/transfer of capital assets, including LTCG & STCG)
5) ITR 2 Form Schedule 112A: In this section, you need to fill out the Income from the sale of equity shares in a company or unit of equity oriented fund or unit of business trust on which STT is paid u/s 112A.
6) ITR 2 Form Schedule OS: This section requires the details of the calculation of your income obtained from other resources like rental income from machinery, buildings, and lottery
7) ITR 2 Form Schedule CYLA: This section requires the statement of your income after setting off the losses of the current year.
8) ITR 2 Form Schedule BFLA: In this section, you need to fill out the details of income after setting off brought forward losses of previous years
9) ITR 2 Form Schedule CFL: This section asks for the details of losses that are being carried forward to preceding years
10) ITR 2 Form Schedule VIA: This section will ask all deductions under chapter VI-A (containing section 80C, 80CCC, 80CCD, 80D, 80E, and 80E)
11) ITR 2 Form Schedule 80G: This section asks about all details of donations made in a year entitled under section 80G
12) ITR 2 Form Schedule 80GGA: In this section, all details of donations for rural development or scientific research only are to be filed.
13) ITR 2 Form Schedule AMT: This section requires the detailed computation of alternate minimum tax payable under section 115JC.
14) ITR 2 Form Schedule AMTC: Here you need provide your detailed calculation of tax credit u/s 115JD.
15) ITR 2 Form Schedule SPI: This section requires income of specified people (minor child, spouse, or similar) containing total income of the assessee u/s 64
16) ITR 2 Form Schedule SI: In this section income chargeable to tax at special rates are to be provided.
17) ITR 2 Form Schedule EI: This section asks about the details of income exempted.
18) ITR 2 Form Schedule PTI: This section will require pass through income information from business trust or investment fund under section 115UA & 115UB
19) ITR 2 Form Schedule FSI: In this section, you need to provide your statement of income accruing or arising outside India.
20) ITR 2 Form Schedule TR: This section require the entire summary of tax relief claimed under tax paid in countries other than India.
21) ITR 2 Form Schedule FA: This section will require all information of foreign assets and income from any other sources from a country other than India.
22) ITR 2 Form Schedule 5A: In this section, details regarding income apportionment between spouses being under the Portuguese Civil Code.
23) ITR 2 Form Schedule AL: This section requires asset and liability at the end of each year.
24) ITR 2 Form Schedule DI: This section requires schedule for tax saving investments, deposits or payments to claim exemption/deduction in extended period of 01.04.20 to 30.06.20.
25) Part B-TI: This section asks about the computation of Total Income.
26) Part B-TTI: This section will require the computation of tax liability on total income.
27) Item No 20 – You need to provide the tax payment details in this section.
IT 2 Form – Item no 20 - Part A – Payments made under advanced tax or self-assessment tax.
IT 2 Form – Item no 20 - Part B – TDS information from salary.
IT 2 Form – Item no 20 - Part C – TDS details on income other than salary
IT 2 Form – Item no 20 - Part D – TCS details during a year as stated in form 27D
28) ITR 2 Form- Verification – Provide the necessary details for verification as per the given specifications. If the return of income has been verified by the individual taxpayer themselves, please enter the relevant information. If the return has been verified by the Karta of a Hindu
29) ITR 2 Form- Information about the Tax Return Preparer (TRP)
Due Date For Filing ITR 2 Online FY 2022-23
Financial Year 2022-23 (AY 2023-24) – 31st July 2023
Financial Year 2021-22 (AY 2022-23) – 31st July 2022
Every year on or before 31st July is termed as the last date for filing ITR 2 (Non-audit cases).
Steps To Prepare & File ITR-2
Please follow these steps to go to the Income Tax e-Filing portal and submit your Income Tax Return:
- The first step is to go to the income tax e-Filing portal.
- Second step is to login to the website using your user ID (PAN), password, and captcha code.
- Then after logged in, click on the 'e-File' tab & select the 'Income Tax Return' section.
- On the Income Tax Return page, your PAN will be automatically populated. Now, select the relevant 'Assessment Year' and 'ITR Form Number'.
- After this, you must select option 'Filing Type' as 'Original/Revised Return' & then choose the 'Submission Mode' as 'Prepare and Submit Online'. Click on the 'Continue' button.
- At this step, read the instructions properly & fill in all the applicable and compulsory sections of the Online Income tax return form.
- To ensure that entered ITR details are not lost, it is recommended to click on the 'Save Draft' button regularly to save your progress as a draft. This saved draft will remain accessible until you file the return or until there is no change in the XML schema of the notified ITR (whichever comes first), or for a maximum of 30 days from the date of saving. By saving the draft periodically, you can safeguard your data and resume the filing process at your convenience.
- In the 'Taxes Paid and Verification' tab, please select the verification option that is most appropriate for your situation.
- In order to verify your Income Tax Return, please choose one of the following options:
- "I would like to e-Verify within 120 days from the date of filing." OR "I do not want to e-Verify and would like to send the signed ITR-V through normal or speed post to 'Centralized Processing Center, Income Tax Department, Bengaluru – 560 500' within 120 days from the date of filing."
- Once you have selected your preferred verification option, please click on the 'Preview and Submit' button to review and verify all the data entered in the ITR. Finally, click on 'Submit' to submit the ITR.
Who is not Eligible to File the ITR-2 Form?
Those individuals who are a partner in any partnership firm.
Those individuals & HUFs who have fully or partially income from business or profession.
Those individuals who are obliged to file the ITR-1 form.
Required Document to File ITR-2
- A copy of last year's tax return
- Bank Statement
- Interest statement which shows the interest paid to you throughout the year.
- TDS certificates
- Savings certificates/Deductions
- P&L Account Statement, Balance Sheet, & other Audit Reports wherever applicable.
Amendments In ITR-2 Form For AY 2022-23
A recent update has introduced a new section called 'Schedule Tax Deferred on employee stock ownership plan (ESOP).' This section aims to monitor the amount of tax that is deferred and the specific year in which it should be taxed. In order to obtain the required information on employees' ESOPs from qualifying start-ups, it is essential.
To establish the taxpayer's residence status, they need to choose from various descriptions related to different sections of the Income Tax Act.
Schedule FA (Foreign Asset)
The term "calendar year ending as on 31st December 2021" has been replaced by the term "accounting period."
This change shows that the taxpayer needs now to furnish details of all foreign assets owned during the period from 1st January 2021-31st December 2021.
This modification has brought about a clearer and more explicit reporting period for foreign assets. As a result, it is now easier to understand and comply with the requirements regarding the timeframe for reporting foreign asset information.
Schedule CG (Capital Gains)
- Yearly wise breakdown of land or building costs of improvement.
- The requirement now entails providing distinct details for the acquisition cost and indexed acquisition cost.
- Disclosure of Fair Market Value (FMV) for capital assets and the consideration paid in slump sale transactions.
Important Points While Filing ITR 2:
Double-check the accuracy of the tax-paid amounts, including TDS/TCS, advance tax, and self-assessment tax.
When making self-assessment tax payments, ensure that you select the correct assessment year. Many taxpayers mistakenly choose the financial year instead of the assessment year when generating the challan. For example, for the fy 2019-20, the ay will be 2020-21.
Verify the tax paid amount by cross-checking with Form 26AS to avoid any discrepancies. You can refer to Form 26AS to understand more about it.
File your ITR on or before the due date. Any type of failure doing so may attract fines and penalties. Remember that it is easier to file and revise an ITR than not filing it at all.
Understand the applicability of income tax returns based on your specific situation before proceeding with the filing process.
While filling out the income tax return, remember to save each schedule before moving on to the next one. This will ensure that your progress is saved and prevent any loss of data.
What is the ITR-2 Form?
The ITR-2 Form is an income tax return form used by individuals and Hindu Undivided Families (HUFs) to file their income tax returns in India. It is applicable when the taxpayer does not have income from business or profession.
Who needs to file the ITR-2 Form?
You need to file the ITR-2 Form if you are an individual or an HUF and have income from sources such as salary, house property, capital gains, or other sources excluding income from business or profession.
Do I need to attach any documents with the ITR-2 Form?
No, you generally do not need to attach any documents with the ITR-2 Form. However, it is important to keep supporting documents such as Form-16, TDS certificates, investment proofs, and other relevant documents for future reference if required.
Can I file the ITR-2 Form electronically?
Yes, the ITR-2 Form can be filed electronically through the Income Tax Department's e-filing portal. You can either submit the form online or use third-party software that is compatible with the form.
Can NRIs (Non-Resident Indians) file the ITR-2 Form?
Yes, NRIs can file the ITR-2 Form if they meet the criteria mentioned in question 2. However, NRIs with income from business or profession should use a different form.
What information is required to fill out the ITR-2 Form?
The ITR-2 Form requires you to provide details about your personal information, income from various sources, deductions claimed, tax paid, and any carried forward losses, if applicable. You may also need to provide information about foreign assets, if applicable.
Also, Read: "Interest Under Section 234A, 234B, & 234C".
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