IndiaFilings / Learn / Income Tax / Itr 2 Filing For Fy 2023 24 Ay 2024 25

ITR 2 Filing for FY 2024-25 (AY 2025-2026) - IndiaFilings

ITR 2 Filling

In India, taxpayers are categorized based on Income, and specific Income Tax Return (ITR) forms are assigned to individuals according to their income sources. Among these forms, ITR-2 is designated for individuals and Hindu Undivided Families who do not generate Income from professional or business activities. This article will delve into the details of ITR2 filing, applicability, differences from other forms, required documents, the step-by-step process to file ITR 2 online and the form ITR 2 download.

Effortlessly complete your ITR2 Filing for FY 2024-25 (AY 2025-26) with the expert assistance of IndiaFilings!

[shortcode_21]

What is the ITR2 Form?

Who is eligible to file ITR2 for AY 2024-25?

The ITR2 form is designed for individuals and Hindu Undivided Families (HUFs) who earn Income from sources other than 'Profits and Gains from Business or Profession.' If your Income originates from any of the following sources, you are required to do ITR2 filing:

Income from Salary/Pension
Income derived from house property, which may involve multiple properties
Income from Capital Gains or losses incurred from the sale of investments or property, encompassing both long-term and short-term gains/losses
Income from Other Sources, which includes winnings from lotteries, bets on racehorses, and other legally recognized forms of gambling
Payment exceeding Rs 5,000 from agricultural activities
Foreign Income or ownership of Foreign Assets
Status as a Resident Not Ordinarily Resident (RNOR) or a Non-Resident

The total income from the sources mentioned may surpass Rs 50 lakh. Additionally, if you serve as a Director in any company or have invested in unlisted equity shares, you must file your returns using ITR 2 for salaried employees.

Who cannot file ITR-2 for AY 2024-25?

Individuals or Hindu Undivided Families (HUFs) with Income from business or profession.
Individuals who are eligible to fill out the ITR-1 form (Sahaj)

Structure of the ITR-2 Form

The ITR2 Form is structured into two main parts, each with specific sections and schedules formed into a structured ITR 2 Format:

Part A: This section includes general information, such as your Name, Address, Date of Birth (DOB), PAN, Aadhar card, Contact Number, and Email Address.
Part B: This section deals with the computation of your total Income and the tax payable on your earnings.

In addition to Part A and Part B, the ITR 2 format also incorporates various schedules that detail different types of Income and deductions:

Schedule	Description
Schedule S	Income from Salary
Schedule HP	Income from House Property
Schedule CG	Income from Capital Gains (both long and short-term)
Schedule OS	Income from Other Sources (e.g., gifts, interest)
Schedule CYLA	Information on losses incurred in the current year
Schedule BFLA	Income remaining after setting off losses from previous years
Schedule CFL	Carry forward losses to the next financial year
Schedule VIA	Tax-saving deductions under various sections (e.g., 80C, 80E)
Schedule 80G/80GG	Donations and conclusions for scientific research or rural development
Schedule AMT	Alternate Minimum Tax computation (area 115JC)
Schedule AMTC	Tax credit computation under section 115JD
Schedule SPI	Income arising from your spouse, minor child, or son's wife
Schedule SI	Special tax rates for specific income sources
Schedule EI	Details of exempt Income
Schedule PTI	Income from business trust or investment fund
Schedule FSI	Income outside India
Schedule TR	Taxes paid outside India
Schedule FA	Foreign assets and Income from sources outside India
Schedule 5A	Portuguese Civil Code, allocation of Income to spouse

Part B-TI - Computation of Total Income:

This section of ITR 2 format calculates your Gross Total Income from salary, house property, and other sources. Total tax-saving deductions are then subtracted from your Gross Total Income to determine your Total Income.

Part B-TTI - Computation of Tax Liability:

Based on the Total Income, tax liability will be calculated. Once you have completed all the required information, there's a verification section to ensure that the details you provided are factually correct and self-attested.

Key Updates in ITR-2 for AY 2023-24 and AY 2024-25

The ITR2 form has undergone several important changes for FY 2022-23, which continue to apply for FY 2023-24:

Schedule VDA: A new schedule for reporting income from the transfer of Virtual Digital Assets, such as cryptocurrencies.
Relief u/s 89A: A new provision offers relief for residents earning from foreign retirement benefit accounts:
Point No. 1(e)4: Addresses income taxable in the previous year where relief under section 89A was claimed in an earlier year.
Section 10(12C): Introduces a new exemption for payments from the Agniveer Corpus Fund to individuals enrolled under the Agnipath Scheme or their nominees.
Schedule SI: Adds a new item, 115BBH, to address income from the transfer of Virtual Digital Assets.
Section 80 CCH: Includes a new deduction under Chapter VI-A for the entire amount Central Government employees contribute to the Agniveer Corpus Fund.
ARN in Schedule 80G: Now requires additional information regarding the ARN (Donation Reference Number).

Documents required to file ITR 2 Online

For ITR2 Filing, you will need a comprehensive set of documents depending on the sources of your income and the deductions or exemptions you wish to claim. Here's a detailed list of documents for ITR 2 income tax you might need:

Form 16: Issued by your employer, it details your salary income and tax deducted at source (TDS).
Form 16A: If you have earned interest on fixed deposits or savings accounts where TDS has been deducted, the deductors issue this form.
Form 26AS helps verify the TDS deducted from your salary and other incomes. It can be downloaded from the e-filing portal.
Rent Receipts: If you live in rented accommodation, you’ll need rent receipts to calculate House Rent Allowance (HRA) or claim deductions, especially if these receipts were not previously submitted to your employer.
Capital Gains Statements: You'll need a summary or profit/loss statement to compute capital gains for capital gains from shares or securities.
Bank Documents: Your bank passbook or Fixed Deposit Receipts (FDRs) will help calculate interest income.
Property Income Documents: If you receive rent from property, you’ll need documents like tenant details, local tax payments, or interest on borrowed capital to calculate income from house property.
Loss Documents: If you incurred losses during the current financial year or wish to carry forward previous years' losses, you need the relevant documents showing these losses. For previous years' losses, a copy of ITR-V from that year is required.
Tax Saving Investment Proofs: You need relevant receipts and documents for claims under sections 80C (investments like PF, PPF, life insurance premiums, etc.), 80D (medical insurance), 80G (donations), and 80GG (rent where no HRA is received).

Instructions for Completing the ITR2 Filing for FY 2024-25 (AY 2025-26)

When filling out the ITR2 Form, it is essential to adhere to the following instructions and guidelines:

Fill out the form in the following sequence: Part A, all the schedules, Part B-TI, Part B-TTI, and finally, the verification section.
Any schedules that do not apply to the Assessee should be struck out with 'NA' (Not Applicable) mentioned.
The Assessee should use 'NA' against any item that does not apply to them.
Round off all figures to the nearest one rupee, except for total income/loss and tax payable, which should be rounded off to the nearest multiple of ten.
For individuals falling under the Employer Category, select 'Government' if they are a Central/State Government employee.
If working in a public sector company of the Central/State Government, choose 'PSU.'
If the Assessee claims double taxation relief under section 90/90A/91, the Form of ITR 2 for salaried employees cannot be used.
ITR2 is an annexure-less form, and no documents need to be attached during submission

Modes of Submission for ITR 2

There are two primary methods for filing ITR 2 income tax: offline and online.

To File ITR 2 Offline

If you are 80 years of age or older, you have the option to file ITR-2 offline. In this case, you must submit a physical paper return or use a bar-coded form. Upon submission, the Income Tax Department will issue an acknowledgement.

To File ITR 2 Online

For online filing of ITR 2 income tax, you can transmit all the necessary information electronically, either with or without a digital signature. After completing the file ITR 2 online, you can verify the return through Return Form ITR-V. If you submit ITR 2 for salaried employees electronically with a digital signature, you will receive the acknowledgement on the registered email."

Procedure for ITR 2 Return filing

Filing the ITR-2 form is a systematic process, and it can be completed online via the e-filing portal of the Income Tax Department of India. Here’s a step-by-step guide to help you file your ITR2:

Login with Your Credentials: Visit the official Income Tax India website and log in using the appropriate login credentials.
Select the Correct Assessment Year: When filing ITR2, choose the appropriate assessment year and the filing mode (Online/Offline). The assessment year is when you file ITR 2 online following the financial year.
Select the Assessee Status: Next, select your status as the assessee. ITR2 primarily applies to individuals and HUFs. The system may prefill this information based on your registration status on the income tax portal.
Choose the ITR-2 Form: Proceed to select the ITR-2 form from the dropdown menu. Once selected, the form will be enabled for filling. You must provide details such as the reason for filing, confirming personal information, validating your bank account, nature of employment, and more. Ensure all figures are entered correctly, and review for any errors or omissions.
Provide Income Details: This section provides comprehensive information about your Income from various sources, including salary, capital gains, rental Income, and other sources. Fill in the required fields accurately, and ensure you have supporting documents. Complete the schedules provided in the form, if applicable.
Deductions and Taxable Income: Specify eligible deductions under various sections of the Income Tax Act. These may include deductions for investments, insurance premiums, home loans, and other allowable expenses. Choose appropriate conclusions from the dropdown menu and calculate your taxable Income after applying them.
Calculate Your Tax Liability: The form will automatically calculate your tax liability based on the income details provided, considering various deductions and exemptions available. Ensure the correct TDS/TCS/Advance Tax details are imported from Form 26AS.
Validate, Verify, and Generate the JSON File: Validate the ITR-2 form using the validation criteria on the income tax website to ensure it is error-free and ready for submission. After validation, generate the JSON file for online filing.
Verify the Return: You must verify your return after successfully filling out the JSON file. Verification methods include using an electronic verification code (EVC), Aadhar OTP, digital signature, or sending a signed physical copy to the Centralized Processing Centre (CPC) if electronic verification is not done.
Acknowledgement and Verification: Upon successful verification, the income tax department will issue an acknowledgement receipt, which will be sent to your registered email address. Keep this acknowledgement for future reference.

Important Note: The Central Board of Direct Taxes (CBDT) emphasises that Foreign assets must be reported correctly in the ITR-2 form to avoid fines. The Income Tax Department allows taxpayers to correct any omissions or inaccuracies by filing a revised return. For the A.Y.2024- 25 revised return can be filed upto “December 31, 2024”.

ITR 2 Filing Charges

The charges for filing ITR2 can vary depending on the complexity of your financial details and the professional services you employ.

IndiaFilings offers ITR-2 return filing at a very affordable cost, making it accessible for everyone.

Key Differences Between ITR 1 and ITR 2

Selecting the correct form for filing income tax returns is crucial. Failure to do so can result in the rejection of your return by the Income Tax department, along with possible penalties for missing deadlines. Consequently, individual taxpayers often encounter confusion when deciding between ITR 1 and ITR2

Particulars	ITR 1	ITR 2
Applicant type	Individual (resident or non-resident)	Individuals (resident or non-resident) and HUFs
Income from salary/pension within a financial year	Up to Rs 50 lakh	More than Rs 50 lakh
Income from Other Sources	Excluding activities like horse racing, gambling, lotteries, etc.	Including activities like lotteries, gambling, horse racing, card games, etc.
Exempt Income	Up to Rs 5,000	More than Rs 5,000
Income from Property	Up to 1 house	More than one house

How to Download ITR 2 Form?

Here is the simple step-by-step process to download ITR 2 form

Visit the Official Income Tax Portal: Go to the Income Tax Department's official e-filing website.
Login to Your Account: Use your credentials (PAN number, password) to log in to your e-filing account.
Navigate to 'Downloads' Section: Once logged in, go to the 'Downloads' section on the homepage.
Select the Correct Form: In the list of available forms, locate the Form ITR 2 download option for the relevant assessment year (e.g., AY 2025-2026).
Click to Download: Select Download ITR 2 in your preferred format, such as Excel, PDF, or XML.
Fill and Submit the Form: After you complete the form, save it and submit it electronically through the e-filing portal.

Following these steps, you can quickly form ITR 2 download and file your returns smoothly. Ensure you're downloading the correct version of ITR 2 based on the assessment year to avoid filing errors.

Latest Update on the Pay Later Option for Income Tax Filing

The Income Tax e-filing portal has recently rolled out a 'Pay Later' option, allowing you to complete your tax filing process before making any tax payments. You can pay taxes after you are done filing.

For additional information, please refer to our guide – Pay later option for the Income tax return filing.

Effortless ITR2 Filing for FY 2024-25 with IndiaFilings

Filing your ITR-2 tax return is made easy and hassle-free with IndiaFilings. With expert guidance, a straightforward interface, and step-by-step instructions, you can quickly and confidently file your ITR-2. IndiaFilings is your trusted partner to navigate the intricacies of tax filing, ensuring accuracy and compliance while you focus on your financial well-being. [shortcode_21]

About the Author

RENU SURESH
Renu Suresh is a proficient writer with a knack for turning intricate legal concepts into clear, actionable advice. Her articles empower entrepreneurs by providing the knowledge they need to navigate the complexities of business laws, ensuring they can start and manage their businesses effectively.

Updated on: January 9th, 2025

Related Guides

Tax Loss Harvesting in India: A Smart Strategy to Save Taxes Partnership Firms and LLPs: What are the Significant Tax Changes from 1st April 2025? Missed Form 10B Deadline? ITAT Says Exemption Still Possible with Valid Reason! Bollywood Actor Wins Tax Case: Key Lessons on Foreign Tax Credit (FTC) Government Approval Not Mandatory for Section 80IC Claims Key Tax Changes Every NRI Should Know in 2025 Tax Concepts in India

ITR 2 Filling

What is the ITR2 Form?

Who is eligible to file ITR2 for AY 2024-25?

Who cannot file ITR-2 for AY 2024-25?