Guidelines for filling ITR-2 for AY 2020-2021

Guidelines for Filling ITR-2 for AY 2020-2021

The Central Board of Direct Taxes (CBDT) issued the Guidelines for filling ITR-2 to help the taxpayers for filing the particulars in Income-tax Return Form-2 for the Assessment Year 2020-2021 relating to the Financial Year 2019-2020. The Form ITR-2 is required to be filed by an individual and HUF who does not derive any income from a business or profession. The current article briefs the Guidelines for filling ITR-2 for AY 2020-2021.

Know more about Form ITR-2 for AY 2020-21

Eligibility Criteria to File ITR-2

The ITR-2 form is to be filed by an individual or a Hindu Undivided Family (HUF) who is not eligible to file Form ITR-1 (SAHAJ) and who is not having any income under the head “Profits or gains of business or professions. Thus persons having income from the following sources are eligible to file Form is for ITR 2:

    • Income from House Property(Income Can be from more than one house property)
    • Income from Salary and Pension
    • Income from Capital Gains or loss on the sale of property (Both Short Term and Long Term)
    • Income from Other Sources (including Winning from Lottery, bets on Race Horses, and other legal means of gambling)
    • Income  from Foreign Assets
    • Agricultural Income more than Rs.5000
  • A Director of a company and an individual who is invested in unlisted equity shares of a company will be required to file the ITR-2.

Non-Applicability of ITR-2Form

As mentioned above, an individual whose total income for the Assessment Year 2020-2021 includes Income under the head “Profits or Gains of Business or Profession” is not required to file ITR-2

Assessment Year for which this Return Form is applicable

The ITR-2 is applicable for the assessment year 2020-2021 only, that is, it relates to income earned during the Financial Year 2018-2019.

Procedure for filling and verification of ITR-2

The applicant can file the ITR-2form electronically on the e-filing web portal of the Income-tax Department and verify in any one of the following manners:

  • Digitally signing the verification part
  • Authenticating by way of electronic verification code (EVC)
  • Aadhaar OTP
  • By forwarding duly signed paper Form ITR-V (Acknowledgment) by post to CPC at the following address
    • Centralized Processing Centre
    • Income Tax Department
    • Bengaluru— 560500
    • Karnataka

The applicant is required to furnish the following details in the income tax return form-2 (ITR-2):

  • General Information about the taxpayer
  • Details of income from salary
  • Details of income from House Properties
  • Computation of income under Capital gains
  • Computation of income under Income from other sources
  • Statement of income after set off of current year’s losses
  • Statement of income after set off of unabsorbed loss brought forward from earlier years
  • Statement of losses to be carried forward to future years
  • Statement of deductions (from total income) under Chapter VIA
  • Statement of donations entitled for deduction under section 80G
  • Statement of donations for scientific research or rural development
  • Computation of Alternate Minimum Tax payable under section 115JC
  • Computation of tax credit under section 115JD
  • Statement of income arising to a spouse, minor child, son’s wife or any other person or association of persons to be included in the income of the taxpayer
  • Statement of income which is chargeable to tax at special rates
  • Details of Exempt Income
  • Pass-through income details from business trust or investment fund as per Section 115UA, 115UB
  • Statement of income accruing or arising outside India.
  • Details of Taxes paid outside India
  • Details of Foreign Assets and income from any source outside India
  • Statement of apportionment of income between spouses governed by Portuguese Civil Code
  • Asset and liability at the year-end (applicable in case the total income exceeds Rs 50 lakhs)
  • 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
  • Computation of Total Income
  • Computation of tax liability on total income

Note: The Form ITR-V should reach within 120 days from the date of e-filing the return

The confirmation of the receipt of the ITR V (Income Tax Return Verification Form) at the Centralized Processing Centre will be sent to the taxpayer through mail ID registered in the e-filing portal.

Filling out the ITR V- Income Tax Return Verification Form

After filing the ITR form – 2, the taxpayer needs to print out the Form ITRV- Income Tax Return and send it to Processing Centre, Income Tax Department, Bengaluru- 560500 (Karnataka) by ordinary post or speed post.

Obligation to File Return

Every taxpayer or HUF whose total income before allowing deductions under the Chapter VIA of the Income-tax Act exceeds the maximum amount which is not chargeable to income tax is obligated to furnish his return of income in form ITR-2.

The maximum amount which is not chargeable to income tax for Assessment Year 2020-2021 for different categories of individuals/HUF is as follows:

Sl.No Category Amount
1 An individual who is below the age of 60 years or a Hindu Undivided Family (HUF) Rs.2,50,000
2 An individual, being resident in India, who is of the age of 60 years or more at any time during the previous year 2019-2020 but below the age of 80 years Rs.3,00,000
3 An individual, being resident in India, who is of the age of 80 years or more at any time during the previous year 2018-2019 Rs.5,00,000

If a person whose total income before allowing deductions under Chapter VI-A of the Income-tax Act or deduction for capital gains (section 54 to 54GB), does not exceed the maximum amount which is not chargeable to income-tax but fulfils one or more conditions mentioned below is obligated to furnish his return of income

  • Deposit of amount or aggregates of the amount exceeding one crore in one or more current accounts
  • Incurred expenditure of an amount or aggregate of the amount exceeding two lakhs for travel to a foreign country for yourself or any other person
  • Incurred expenditure of amount or aggregate of the amount exceeding one lakh on the consumption of electricity

If a person whose total income before allowing deductions under Chapter VI-A of the Income-tax Act or deduction for capital gains (section 54 to 54GB) or exempt long term capital gains (section 10(38)), does not exceed the maximum amount which is not chargeable to income-tax but fulfils one or more conditions mentioned below is obligated to furnish his return of income

  • Deposit of amount or aggregates of the amount exceeding Rs.1 crore in one or more current accounts
  • Incurred expenditure of an amount or aggregate of the amount exceeding two lakhs for travel to a foreign country for yourself or any other person
  • Incurred expenditure of amount or aggregate of the amount exceeding one lakh on the consumption of electricity

Please click on the official link Guidelines for filling ITR-2 for AY 2020-2021 for reference.

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