ITR 2 Form is the Income Tax Return form for all those individuals and HUFs who do not have any sort of Business or Professional Income. This means any individual having Salary, House Property, Capital Gains and Other Sources can file ITR 2.
Up to FY 2018-19 (AY 2019-20), it was not mandatory to file Income Tax Return if the total income was less than the basic exemption limit. However, Budget 2019 inserted the seventh proviso to Section 139(1). As per this new provision, if a taxpayer has entered into high-value transactions, it is mandatory to file the ITR even if the total income does not exceed the basic exemption limit. The high-value transactions can be either of the following:
The ITR 2 Form has 25 sections that are needed to be filled before reviewing and submitting the return after paying the tax and finally verifying the return. These sections are as follows:
It can be filed by an individual or a Hindu Undivided Family (HUF) whose total income includes:
Further, it can be used where the income of another person is clubbed with a taxpayer’s income provided such income falls in any of the above categories.
Fill in the general information which consists of your contact, personal information, filing status & bank details.
In Schedule Salary, you need to review, enter, edit details of your income from salary or pension, exempt allowances and deductions u/s 16.
Under schedule house property, you need to review, enter & edit details relating to house property (self-occupied, let out, or deemed let out). The details include co-owner details, tenant details, rent, interest, pass through income etc.
and, under schedule other sources, you need to review, enter and edit details of all your income from other sources, including (but not limited to) income charged at special rates, deductions u/s 57 and income involving race horses.
Capital Gains arising from sale or transfer of different types of capital assets have been segregated. In a case where capital gains arises from sale or transfer of more than one capital asset, which are of same type, please make a consolidated computation of capital gains in respect of all such capital assets of same type. But in case of transfer of land / building, it is mandatory to enter the computation towards each land / building. In Schedule Capital Gains, you need to enter details of your short term and long term capital gains or Losses for all types of capital assets owned.
Under Schedule 112A, you need to review, enter and edit details about sale of equity shares of a company, an equity-oriented fund, or a unit of a business trust on which STT is paid.
Schedule 115AD (1)(iii) proviso involves entering the same details as for Schedule 112A but is applicable to non-residents.
In Schedule Current Year’s Loss Adjustment (CYLA), you will be able to view details of income after set-off of current year losses. The unabsorbed losses allowed to be carried forward out of this are taken to Schedule CFL for carry forward to future years.
You can view the details of income after set-off of brought forward losses of earlier years.
You can view the details of losses to be carried forward to future years.
you need to add and verify any deductions you need to claim under Section 80 – Parts B, C, CA, and D of the Income Tax Act.
You need to confirm the computation of Alternate Minimum Tax payable u/s 115JC.
You need to add details of tax credits u/s 115JD.
You need to add the income of specified persons (e.g. spouse, minor child) that is includable or required to be clubbed with your income as per Section 64.
You need to provide your details of exempt income i.e., income not to be included in total income or not chargeable to tax. The income types included in this schedule include interest, dividend, agricultural income, any other exempt income, income not chargeable to tax through DTAA and pass through income which is not chargeable to tax.
You will be able to view the income that is chargeable to tax at special rates. The amount under various income types are taken from the amounts provided in the relevant Schedules i.e., Schedule OS, Schedule BFLA.
You need to provide details of pass through income received from business trust or investment fund as referred to in section 115UA or 115UB.
You need to report the details of income, which is accruing or arising from any source outside India. This schedule is available for residents only.
You need to provide a summary of tax relief which is being claimed in India for taxes paid outside India in respect of each country. This schedule captures a summary of detailed information furnished in Schedule FSI.
You need to provide details of foreign asset or income from any source outside India. This schedule need not be filled up if you are Not Ordinarily Resident or a Non-Resident.
In Schedule 5A, you need to provide the information necessary for apportionment of income between husband and wife if you are governed by the system of community of property under the Portuguese Civil Code 1860.
If your total income exceeds ₹50 lakh, it is mandatory to disclose the details of movable and immovable assets in Schedule AL along with liabilities incurred in relation to such assets. If you are a non-resident or resident but not ordinarily resident, only the details of assets located in India are to be mentioned.
Under Part B, verify all the auto populated rows from the details that you had entered in the schedules. Verify the tax paid details from the previous financial year.
Login to the income tax efiling portal, i.e, the IT Portal 2.0
Click on eFile > Income Tax Returns > File Income Tax Return
Select the appropriate assessment year and select the online mode and click on proceed.
Select the appropriate ITR Form, in this case, ITR 2.
Next, select the checkboxes applicable to your situation.
Finally, review all the details that you had entered previously and pay the tax dues (if any) and submit the return. Once you submit the return, proceed to everify it to complete the process.
|PART A- GENERAL||Personal Information||Name, Address, Date of Birth, PAN, contact details.|
|Filing Status||Employer Category, Tax status, Residential status, Return filed under the section.|
|PART B-TI||Computation of total income||Total Income from all income sources, Losses of the current year set off, Gross Total Income, Deductions under Chapter VI-A.|
|PART B-TTI||Computation of tax liability on total income||The Bank Account details, Verification, and TRP details (if any) are to be provided.|
|Schedule IT||Details of Advance Tax and Self Assessment Tax Payments||BSR code, Date of Deposit, Chalan number, Tax Paid|
|Schedule TDS||TDS1: Details of Tax Deducted at Source from SALARY||TAN of Employer, Employer Name, Tax Deducted, etc.|
|Schedule TDS||TDS2: Details of Tax Deducted at sources from Income other than Salary (As per FORM 16A) & Details of tax deducted at source on sale of immovable property u/s 194IA (Form 26QB)||TAN, Name of Deductor, Year of Deduction, Tax deducted, etc.|
|Schedule TCS||Details of tax collected at source||TAN of the collector, Name of Collector, Tax Collected, etc.|
|Schedule S||Details of Income from Salary||Name and PAN of the Employer, Address of the Employer, Salary, Perquisites, Allowance, etc.|
|Schedule HP||Details of Income from House Property||Details of House Property, Name and PAN of the Co-owners and Tenants, Details of Rent Income, Interest payable on Borrowed Capital, etc.|
|Schedule CG||Capital Gains||Details about the Short term and Long term Capital gains, Sales consideration, Cost of Acquisition, Deductions under Section 54,54B,54EC,54F,54GB.|
|Schedule OS||Income from Other Sources||A dividend, Interest, Rental income from machinery, Winnings from lotteries, Crossword puzzles, Races, Games.|
|Schedule CYLA||Details of income after setoff of current year losses||Details of current year losses and its Inter Headset off|
|Schedule BFLA||Details of income after Set off of Brought Forward Losses of earlier years||Details of brought forward losses set off against current year’s income, total brought forward losses set off.|
|Schedule CFL||Details of Losses to be carried forward to the future years||Total of earlier year losses, current year losses, Total of carried forward to future years.|
|Schedule VI-A||Deductions under Chapter VI-A||Deductions under section 80C, 80CCC, 80CCG, 80D, 80DDB, 80E, 80G, 80TTA.|
|80G||Details of Donations||Name of Donee, Address, City or District, State Code, PAN of Donee, Amount.|
|Schedule SPI||The income of specified persons (spouse, minor child, etc.) included in the income of the assessee (income of the minor child, in excess of Rs. 1500 per child, to be included)||Name and PAN of Person, Relationship, Nature of Income, Amount.|
|Schedule SI||Income chargeable to income tax at special rates||Description of Special Rate Income, Special Rate, Income, Taxable Income after adjusting min. chargeable to tax, Tax thereon.|
|Schedule EI||Details of Exempt Income (Income not to be included in Total Income)||Interest income, Dividend, Agricultural Income.|
|Schedule PTI||Details of Income from Business Trust or Investment Fund||Details of Income earned from Business Trust or Investment Fund as per section 115UA, 115UB.|
|Schedule FSI||Details of Income from outside India and tax relief||A country, Head of income, Income from outside India, Tax paid outside India, Tax payable in India, Relevant article of DTAA if relief is claimed u/s 90 or 90A|
|Schedule TR||Summary of tax relief claimed for taxes paid outside India||Details of tax relief claimed|
|Schedule 5A||Information regarding the appointment of income between spouses governed by Portuguese Civil Code||Name and PAN of a spouse, Income received under different heads, Amount appointed in the hands of the spouse, TDS details.|
|Schedule FA||Details of Foreign Assets and Income from any source outside India||Details of foreign bank accounts, financial interest in any entities, Immovable Properties, Other Capital Assets.|
|Schedule AL||Details of Assets and Liabilities||Details of an immovable asset, Details of a movable asset, Interest held in the asset of a firm or AOP.|
You should gather the following documents for a smooth process.
Documents on the basis of a type of Income:
Yes, NRI can file ITR-2, if NRI is earning any salary income, rental income, capital gain income, or interest income.
No. If you are a partner in partnership firm/LLP then you need to file ITR-3. You need to enter details of the firm in which you are a partner and then add details of your income form that firm.
Yes, it can be filed after the due date. It will be considered a belated return. And late filing fees will be levied while filing a belated return.
Any consideration received from the sale of a property will be covered under the head income from Capital Gain. Hence you can file ITR-2 for reporting capital gain.