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Income Tax Return (ITR) 2 Filing Form

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.

Procedure to file ITR2

How to file ITR2?

ITR Form 2 can be filed online and offline as well.

How to file from ITR 2 offline?

The following people can file offline

Individuals who are of 80 years or more.

Returns can be filed offline by:

By Furnishing a return in a physical paper form
By furnishing a bar-coded return.

An acknowledgment at the time of submission of the physical paper return from the Income-tax department

How to file the form electronically or online?

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 to

Post Bag No. 1,
Electronic City Office,
Bengaluru— 560 100,
Karnataka.

The other copy may be retained by the assessee for his record.

Who is Eligible to File ITR 2 for Fy 2021-22?

Who can file Form ITR-2?

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:

Income from Salary/Pension
Income from House property ( can be from more than one house property)
Income from Capital gains
Income from other sources (Lottery, bets on horses, and other gambling)
Foreign Assets/Foreign Income
Agricultural income more than Rs.5000
Resident not an ordinary resident and an NRI.
Also, a director of any company and an individual who is invested in unlisted equity shares of a company should file their returns in ITR-2

Who is not 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.

Structure of ITR Form 2

ITR-2 is divided into:

Part A: General Information
Schedule S: Details of income from salaries
Schedule HP: Details of income from House Property
Schedule CG: Computation of income under Capital gains
Schedule OS: Computation of income under Income from other sources
Schedule CYLA: Statement of income after set off of current year’s losses
Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years
Schedule CFL: Statement of losses to be carried forward to future years
Schedule VIA: Statement of deductions (from total income) under Chapter VIA
Schedule 80G: Statement of donations entitled for deduction under section 80G
Schedule 80GGA: Statement of donations for scientific research or rural development
Schedule AMT: Computation of Alternate Minimum Tax payable under section 115JC
Schedule AMTC: Computation of tax credit under section 115JD
Schedule SPI: Statement of income arising to spouse/ minor child/ son's wife or any other person or association of persons to be included in the income of the assessee in Schedules-HP, CG, and OS
Schedule SI: Statement of income which is chargeable to tax at special rates
Schedule EI: Details of Exempt Income
Schedule PTI: Pass-through income details from business trust or investment fund as per Section 115UA, 115UB
Schedule FSI: Statement of income accruing or arising outside India.
Schedule TR: Details of Taxes paid outside India
Schedule FA: Details of Foreign Assets and income from any source outside India
Schedule 5A: Statement of apportionment of income between spouses governed by Portuguese Civil Code
Schedule AL: Asset and liability at the year-end (applicable in case the total income exceeds Rs 50 lakhs)
Schedule DI: Schedule of tax-saving investments or deposits or payments to claim deduction or exemption in the extended period from 1 April 2020 until 30 June 2020
Part B-TI: Computation of Total Income
Part B-TTI: Computation of tax liability on total income

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 foreign assets or foreign income.

Major amendments made to the ITR2 for AY 2020-2021

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

The number of cash deposits above Rs 1 crore in the current accounts with a bank
Expenditure above Rs. 2 lakh
Expenditure incurred above Rs. 1 lakh on electricity.

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.

Frequently Asked Questions

Who can use ITR-2 form?

ITR-2 must be filed by individuals and HUFs who are not eligible to file ITR-1 Sahaj form, because of following reasons:

Income exceeding Rs. 50 Lakhs
Having foreign assets / income
Having agricultural income which is more than Rs. 5,000,
Having taxable capital gains
Having income from business or profession as a partner
Having more than one house property

Who should not file ITR-2 form?

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.

When should ITR-2 be filed?

ITR-2 form is to be used when the assessee has income that falls into the below category:

Accrued income through the sale of assets or property (Capital Gains)
Income from more than one housing property
Income from countries outside of India
Income as a partner in any firm (not proprietorship)
Income from agriculture above Rs 5,000
Income from any windfall such as lotteries or horse racing
Income from Salary/Pension, Housing Property, Other sources that exceeds Rs. 50 Lakhs