What is ITR 2 Form?
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.
Other important income tax documents include Form 16, Form 26AS, Form 12BB, Form 10BA and Form 15G/ 15H.
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:
- If the taxpayer has deposited more than INR 1 Cr in a current account
- If the taxpayer has incurred foreign travel expense of more than INR 2 lacs
- Or, if the taxpayer has incurred electricity expense of more than INR 1 lac
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ITR 2 Form Breakdown
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:
- Part A General
- Schedule Salary
- Schedule House Property
- Schedule Capital Gains
- Schedule 112A and Schedule-115AD(1)(iii) proviso
- Schedule Other Sources
- Schedule CYLA
- Schedule BFLA
- Schedule CFL
- Schedule VI-A
- Schedule 80G and Schedule 80GGA
- Schedule AMT
- Schedule AMTC
- Schedule SPI
- Schedule SI
- Schedule EI
- Schedule PTI
- Schedule FSI
- Schedule TR
- Schedule FA
- Schedule 5A
- Schedule AL
- Part B – Total Income (TI)
- Tax Paid
- Part B-TTI
Who can file ITR-2?
It can be filed by an individual or a Hindu Undivided Family (HUF) whose total income includes:
- Salary/pension income.
- Income from Multiple House Property.
- Capital Gains income.
- Income from Other Sources (including Winnings from Lottery and Income from Race Horses).
- Income from Agriculture Income more than INR 5,000.
- Foreign Assets/ Foreign Income.
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.
Who can not file ITR-2?
- An individual whose total income includes Business or Professional income.
- A taxpayer earning income from Partnership Firm can not file ITR-2. For declaring these types of Income, you may file ITR-3 or ITR-4.
File ITR 2 Online using Income Tax Website
- General Information
Fill in the general information which consists of your contact, personal information, filing status & bank details.
- Schedule Salary, House Property & Other Sources
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.
- Schedule Capital Gains
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.
- Schedule 112A & Schedule 115AD(i)(iii) Proviso
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.
- Schedule Current Year’s Loss Adjustment (CYLA)
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.
- Schedule Brought Forward Loss Adjustment (BFLA)
You can view the details of income after set-off of brought forward losses of earlier years.
- Schedule Carry Forward Loss
You can view the details of losses to be carried forward to future years.
- Schedule VI-A
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.
- Schedule AMT
You need to confirm the computation of Alternate Minimum Tax payable u/s 115JC.
- Schedule AMTC
You need to add details of tax credits u/s 115JD.
- Schedule SPI
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.
- Schedule EI
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.
- Schedule SI
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.
- Schedule PTI
You need to provide details of pass through income received from business trust or investment fund as referred to in section 115UA or 115UB.
- Schedule Foreign Source Income (FSI)
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.
- Schedule TR
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.
- Schedule FA
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.
- Schedule 5A & Schedule AL
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.
- Tax Paid
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 efiling portal
Login to the income tax efiling portal, i.e, the IT Portal 2.0
- File Income Tax Return
Click on eFile > Income Tax Returns > File Income Tax Return
- Assessment Year and Mode
Select the appropriate assessment year and select the online mode and click on proceed.
- ITR Form
Select the appropriate ITR Form, in this case, ITR 2.
- Select the checkboxes
Next, select the checkboxes applicable to your situation.
- Review and File ITR
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.
Structure of ITR-2
| Part/ Schedule | Heading | Fields |
|---|---|---|
| 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. |
Document Checklist
You should gather the following documents for a smooth process.
Essential documents:
- PAN (Permanent Account Number)
- Aadhaar Card
- Bank account details
- TDS certificates
- Challan of taxes paid
- Details of original return if filing revised return
- Details of notice if filing in response to the notice
Documents on the basis of a type of Income:
- Salary Income
- Form 16/Salary slips received from your employer and
- Pension statement/passbook.
- House/Property Income
- Coowner details in case the property is coowned,
- Address of the property,
- In case of house/property loan Interest certificates/repayment certificate from a bank,
- In case of let out property Rent agreement.
- Other sources
- Savings/current account statements/Passbook.
- Interest certificates for deposits/bonds/NSC.
- PPF account statement/Passbook.
- Dividend warrants/counterfoils.
- Rent agreement in case of let out machinery.
- Details about receipts of any other income.
- Capital Gains
- For land/building Sales & Purchase deeds, stamp duty valuation.
- Details of improvement costs.
- For securities Contract notes/stock ledgers/trading statement.
- For other capital assets Cost of purchase, cost of improvement & sales receipts.
- Details of expenses incurred on a transfer of capital assets.
- Details of investments in order to claim exemptions.
- Capital gains deposit account details if any.
- If you’re eligible for any Section 80 Deductions, you may need to acquire the relevant documents from the list:
- PPF account statement/Passbook.
- Fixed deposit certificates/statements.
- ELSS/ULIP/NSC investment details.
- Life insurance premium receipts.
- Medical insurance premium receipts.
- House/property loan interest certificate/repayment statement.
- Education loan interest certificate/repayment statement.
- Tuition fees receipts.
- Donation receipts.
Sample ITR-2 Form for AY 2021-22
Major Changes in ITR 2 for AY 2021-22
- Taxpayers are given the option to choose between the old tax regime and the new tax regime
- Dividend Income has to be added with a quarterly breakdown for accurate calculation of Interest under Section 234C
Major Changes in ITR 2 for AY 2020-21
- RNORs and non-resident individuals have to file their income ITR 2 even if the income is below INR 50 Lakh
- Taxpayers must disclose:
- Amount of cash deposits above INR 1 Crore in the current accounts with a bank,
- Expenditure incurred above INR 2 Lakh on foreign travel, or,
- Expenditure incurred above INR 1 Lakh on electricity
- Resident individuals owning more than 1 house property must file ITR 2
- Taxpayers having income from business and profession cannot file ITR 2
- Type of company needs to be disclosed if the taxpayer is a director in a company or holds unlisted equity investments
- A separate section 112A for the calculation of the long-term capital gains on the sale of equity shares or units of a business trust which are liable to STT.
FAQs
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.
Hey @TeamQuicko
Thanks for the blog! Just one quick question - Why do we have to report a quarterly breakdown of Dividend Income under IFOS?
Thank you!
Hey @TanyaChopra
This quarterly breakdown of Dividend Income under IFOS will help to calculate and determine penalty u/s 234C for the delay in payment of Advance Tax.
Hope this helps!
I had received dividend recently but I had noticed that TDS had been deducted. any idea as to why has it happened and is there a way I can claim this TDS?
Hey @HarshitShah
After the introduction of Budget 2020, dividend income is now taxable in the hands of the shareholder; and is also subject to TDS at 10% in excess of INR 5000 u/s 194 & 194K. Foreign Dividend is taxable at slab rates. TDS is not applicable to such dividends. The taxpayer should report such income under the head IFOS in the ITR filed on the Income Tax Website.
Hope this helps!
Hey @HarishMehta
Yes, dividend income is now taxable from FY 2021-22 onwards and it has to be reported under the head of IFOS.
You can read more about it here:
Hi @Maulik_Padh,
You need to pay Income tax on the net taxable income, i.e. after subtracting deductions, expenses, etc.
If the net taxable income is negative i.e. if there is loss, you can carry it forward when filing the ITR
Here are some of the articles which might help
Hi @ameyj
The amount of TDS deducted shall reflect in your Form 26AS only and it will also reflect the name of the deductor.
Using the name of the deductor you can find out on which share you have received the dividend and you can also cross-check the same in your bank statement.
Yes, you are right, TDS is to be deducted when the dividend paid exceeds 5000 INR in a financial year. However, the 5,000 INR limit pertains to all the dividends an individual gets in a year, or the total dividend per shareholder that a company pays out in a year, is left to interpretation, and hence registrars and share transfer agents (RTA) are not taking any chances and are deducting TDS even on small amounts.
Hope this helps
Hi @ameyj
You can submit a grievance on Income Tax Portal mentioning the issue and also attach the 26AS.
The other option is to leave it as it is and clarify it when the tax department sends the notice.
Hi @TeamQuicko
Consider that I have 10 shares each of 10 different Indian companies. Each of the 10 companies are declaring a dividend of INR 100 before the FY ends. Now I will be recieving 1000 as dividend from each company, thereby a total of 10,000.
The 5,000 dividend limit, is it applicable to each company / total dividend recieved by me in a year. If it is applicable to each company, then I would not attract TDS of 10% for dividend.
Also pl clarify, how would the company B know that I have got shares of Company A,C,D,E so on…
@Saad_C @Laxmi_Navlani @Divya_Singhvi @Kaushal_Soni @AkashJhaveri can you help with this?