The ITR-2 Form is an important income tax return form that is used by Indian citizens as well as the NRIs to file their tax returns with the Income Tax Department of India. The taxpayers who are not eligible to file the ITR-1 can file ITR -2 form to file their income tax returns.
The individuals and Hindu Undivided Families who have their income for the financial year through salary or pension, more than house property, income from capital gains, income from foreign assets, business or income from a profession as a partner and other sources including lottery racehorses, legal gambling are eligible to file their IT returns using form ITR -2.
Also, individual who is not eligible to file using ITR-1 because of the income exceeding Rs.50 lakh can file using ITR-2.
ITR Form 2 can be filed online and offline as well.
The following people can file offline
Individuals who are of 80 years or more.
Returns can be filed offline by:
An acknowledgment at the time of submission of the physical paper return from the Income-tax department
By furnishing the return electronically under digital signature
By Transmitting the data in the ITR-2 Form electronically under electronic verification code
By transmitting the data in the ITR-2 form electronically and then mailing the return by post in return form ITR-v to the Income Tax Office.
Assessee filing ITR-2 form under the third method must complete the acknowledgment in ITR-V. After preparing ITR-V, the assessee should print out two copies of Form ITR-V. One copy of ITR-V, duly signed by the assessee, has to be sent by ordinary post toPost Bag No. 1,
The other copy may be retained by the assessee for his record.
ITR form 2 can be filed by individuals and the HUF who are not eligible to file form ITR-1 receiving income from the “profits and gains from business or profession”. Thus persons having come from the following sources are eligible to file Form ITR 2:
Individuals who have their income under the head of business or profession from a proprietorship should not file ITR Form-2. ITR Form 2 also should not be filed by a company or LLP or other types of a legal entities.
ITR-2 is divided into:
Details to be filled if the return has been prepared by a Tax Return Prepare.
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Income tax return filing for persons having DIN or owing private limited company shares.
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Income tax return filing for persons having capital gains.
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Income tax return filing for persons having foreign assets or foreign income.
Even in the case of total income below Rs 50 lakh, the non-resident individuals have to file their income tax returns in ITR-2.
The taxpayer should disclose
In case if an individual owns more than one house property then he should also file the income tax return using Form ITR-2
A taxpayer having income from business or profession cannot use ITR-2
If the individual is a director in a company or holds unlisted equity investment then it is necessary to disclose the type of company
Suppose in case of short-term or long-term capital gains from the sale of land or a building or both then the details of the buyer need to be given.
A taxpayer should provide the details of any other income under “ income from other sources”
Also, the details of the deductions against Income from other sources should be provided.
The ‘Schedule VI A’ of tax deductions is amended to include deduction u/s 80EEA and Section 80EEB.
When it is a business trust or investment fund the details of the Capital gains income and dividend are to be provided.
The details of tax deduction claims for investments or payments or expenditure that are made between 1 April 2020 and 30 June 2020.
ITR-2 must be filed by individuals and HUFs who are not eligible to file ITR-1 Sahaj form, because of following reasons:
ITR-2 form should not be filed by any individual who has income under the head of Business or Profession from a proprietorship. ITR-2 form can also not be filed by a company or LLP or other types of legal entity.
ITR-2 form is to be used when the assessee has income that falls into the below category:
ITR-2 form must be filed by individuals and HUFs on or before 31st July of every year.
Last updated: Apr 03, 2021