ITR-2 Return Filing
Income tax return filing for persons having DIN or owing private limited company shares.
Income tax return filing for persons having foreign assets or foreign income.
ITR 2 Form Filing
Form ITR 2 is an important income tax return form used by Indian citizens and NRIs to supplement this benefit from the Income-tax department of India. Taxpayers who do not qualify for ITR 1 can file ITR 2 to file income tax returns. ITR 2 can be applied to individuals and Individual Hindu Families who have annual financial income with income, pension, more than one property, income from foreign profits, business or income from work as partners and other sources including lottery, race horses, legal gambling.
Also, a person who is not eligible to file a file using ITR 1 as the income is more than Rs.50 Lakh can file Form ITR 2.
Who can submit Form ITR-2?
The ITR 2 form can be completed by individuals and HUF who are not eligible to submit the ITR-1 form which earns “income and profits from business or profession”. People from the following sources are therefore eligible to submit Form ITR 2:
- Income from Salary / Pension
- Income from property of the House (may be for more than one household property)
- Revenue from monetary benefits
- Revenue from other sources (Lottery, horse betting, and other gambling)
- Foreign Goods / Foreign Income
- Agricultural income is more than Rs.5000
- The resident is not a regular citizen and NRI.
- Also, the director of any company and the person invested in unlisted shares must complete his or her return to ITR-2.
Who should not submit Form ITR-2?
- Any person or Individual Hindu Family with a salary that is fully or partially earned in business or employment.
- Eligible persons to submit Form ITR 1.
- Partners in the Co-operative Company.
- Documents required to upload the ITR 2 file
What documents are required to file ITR 2 returns?
- Copy of last year’s tax refund
- Bank statement
- TDS certificate
- Savings Certificate / Deductions
- Interest Statement showing interest paid for the entire year.
- Balance, P&I, Account Statement, and other Audit reports wherever applicable.
How do you submit Form ITR 2?
- Form ITR 2 can be completed at the Income Tax Department either online or offline:
- It is either by giving a refund to this paper. If the return of the paper is made at the time of submission of the return paper the approval is issued by the Tax Department to the inspector.
- By providing a refund electronically using the Digital Signature. ITR 2 forms are sent electronically by the Digital Examiner Certificate to obtain receipt from the registered Email Id.
- It can also be done by transferring data to an electronic recovery under an electronic verification code.
- It can be done by sending the data for electronic refund and after that submission of the refund confirmation in Form ITR V.
- By providing a bar-coded return.
Instructions to be filed while Form ITR 2
The following instructions and guidelines need to be followed while filing ITR 2 form:
It is necessary to fill the form as per the following sequence:
Part A- All the schedules
Part B- TTI and Part B- TTI Verification.
- If the schedule does not apply to the assessee it should be struck out and it is necessary to mention NA ( Not Applicable)
- The assessee must mention NA against any item that does not apply to him or her.
- All the figures are to be rounded off to the nearest one rupee except the figures for total income/loss and the tax payable which is to be rounded off to the nearest multiple of ten.
- Individuals that fall under the employer category should Choose Government if he or she is a Central or a state government employee.
- The individuals who are working in the Public Sector Company should choose the “PSU”
- ITR Form 2 cannot be used if the assessee is claiming double taxation relief under Section 90/90A/91.
- ITR 2 is an annexure less form. No documents are required to be attached while submission.
Structure of ITR 2 Form
- 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 in if the return has been prepared by a Tax Return Preparer.
Major changes have been made to the ITR 2 Form AY 2021-22.
The changes included in the ITR 3 Form are:
STEP-1 under Section 115BAC of the Finance Act, 2020 ITR forms are updated to include a declaration of choice between the old or new tax systems. And if the inspector pays the Taxes in accordance with the New Tax System it will be sent to Form 10 E.
STEP-2 Finance Act 2020 to allow for tax deductions or tax deductions for ESOPs approved from the appropriate start covered under section 80-IAC. Part B of Schedule TTI requires disclosure of this deferred tax.
STEP-3 The dividend tax on dividend income from a company is transferred to the investor’s hand from the Finance Act, 2020. Section 10 (34), 10 (35), 115-O, 115 BBDA is amended. A new line has been added to configure the OS to allow for deductions as interest from revenue. Another new line is added under the OS Schedule to integrate tax revenue share details into the owners of business trust units.
STEP-4 It is necessary to provide a quarterly dividend of interest on the calculation of interest under Section 234C.
STEP-5 It is necessary to include the side effect of marginal release by showing the additional charge calculated before marginal release and after marginal release. Previously there was no such need.
STEP-6 Under Section 50 C the value of the commercial consideration in the case of a land or building or both is considered. If these auction considerations are below the value of the stamp function then the value of the stamp work is considered the total value to be considered without a difference of 5%. Tolerance limit was increased from 5% to 10% and changes were made to the ITR.
STEP-7 Under schedule 80 GGA separate disclosure of cash and date donations is required in the ITR Form.
STEP-8 Under Schedule 112A and 115 AD (1) (b) (iii) the ITR 2 form is updated with a new column providing details of the type of collateral transferred. Also, both schedules are updated to provide the first clause to work by letting you specify details including the sale price, FMV, and COA securities.
Frequently Asked Questions
Individuals and HUFs in charge of a business or activity are required to fill in the details of the assets and liabilities with balance. You are required to enter an AL schedule when completing ITR2 which includes a taxpayer in excess of Rs.50 lakh.
ITR 2 applies to individuals and non-income HUFs from business or work. The installation of ITR 2 can be done online at e-filing portal or excel utility.
ITR 2 is divided into 2 sections, Part A and B.
Part A of Form ITR 2 covers all general information.
Part B contains the total amount of income and tax liability in the calculation of the total income.