ITR 2 Form Filing

Documents required to file ITR 2

What documents are required to file ITR 2 returns?

• Copy of the previous year’s tax return
• Bank Statement
• TDS Certificate
• Savings Certificate/ Deductions
• Interest Statement that shows the interest that is paid throughout the year.
• Balance sheet, P & I, Account Statement, and other Audit reports wherever they are applicable.

How to file Form ITR 2?

The ITR 2 Form can be filed with the Income Tax Department either online or offline:

• Either by furnishing the return in a paper for. When paper returns are made at the time of submission of the paper returns an acknowledgment is issued by the Income Tax Department to the assessee.
• By furnishing the return electronically using the Digital Signature. ITR 2 forms are submitted by the assessee electronically using the Digital Signature Certificate an acknowledgment is received to the registered Email Id.
• It can also be done by transmitting the data in the return electronically under an electronic verification code.
• It can be done by transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR V.
• By furnishing a bar-coded return.

Major changes were made to the ITR 2 Form for the AY 2021-22.

The Changes that are incorporated in the ITR 3 Form are:

• 1

  Under Section 115BAC of the Finance Act, 2020 ITR Forms are updated to include the declaration of choosing between the old or the new tax regime. Also if the assessee is paying the Taxes following the New Tax Regime then Form 10 E is to be submitted.

• 2

  Finance Act 2020 has allowed deferring the payment or the deduction of the tax on the ESOPs that are allowed from an eligible startup covered under section 80-IAC. The Part B of the Schedule TTI seeks disclosure on this deferred tax.

• 3

  The Tax liability of the dividend income from the company's hand is shifted to the investor's hand since the Finance Act,2020. Section 10(34), 10 (35), 115-O, 115 BBDA are amended. A new row is added to schedule OS to allow the deduction of the expenses like the interest from the dividend income. One more new row is added under the Schedule OS to incorporate the details of the dividend income that is taxable in the hands of the unitholders of the business trust.

• 4

  It is necessary to provide the quarterly breakup of the dividend income for the interest calculation under Section 234C.

• 5

  It is necessary to include the marginal effect of the marginal relief by showing the surcharge calculated before the marginal relief as well as after the marginal relief. Previously there was no such requirement.

• 6

  Under Section 50 C the value of sale consideration in case of the land or building or both is considered. If this sale consideration is less than the stamp duty value then the stamp duty value is considered to be the full value of consideration except for the difference of 5%. The tolerance limit is increased from 5% to 10% and the changes are made to the ITR.

• 7

  Under schedule 80 GGA a separate disclosure of cash donation with the date is required in the ITR Form.

• 8

  Under the Scheule 112A and 115 AD (1)(b) (iii) the ITR 2 form is updated with a new column that provides the details of the nature of the securities that are transferred. Also, both schedules are updated to give the grandfathering clause effect by allowing to mention the details including the Sale price, FMV, and COA of the securities.