ITR-2 EFiling <= 25 Lakhs
The Income Tax Return Form 2 (ITR-2) is designed for individuals and Hindu Undivided Families (HUFs) who have income from sources other than business or profession. This form caters to taxpayers with diverse and relatively complex income streams, such as capital gains, foreign income, or multiple properties.
Documents Needed:
Though no documents are submitted with the ITR, the following may be required while filing:
1. Form 16: For salaried income.
Form 16A/16B/16C: TDS certificates for income other than salary.
2. Form 26AS: Annual tax statement.
3. Bank statements for interest income.
4. Capital gains statements: From brokers or mutual fund houses.
5. Proof of investments: For deductions under Section 80C, 80D, etc.
6. Details of foreign assets and income (if applicable).
Key Due Dates:
Filing Due Date:
31st July for taxpayers not requiring audit.
Revised Return Date:
Can be filed up to 31st December of the assessment year.
Penalties for Non-Filing:
Late Filing Fee under Section 234F:
₹1,000 if total income is less than ₹5 lakh.
₹5,000 for income above ₹5 lakh.
Interest under Section 234A: 1% per month on unpaid tax.
Who Should File ITR-2?
ITR-2 is applicable to:
Individuals and HUFs who have income from:
Salary or pension.
Multiple house properties.
Capital gains (short-term or long-term).
Other sources (interest, dividend, lottery winnings, etc.).
Foreign income or assets.
Agricultural income exceeding ₹5,000.
Income as a partner in a partnership firm (but not from business carried out by the partnership).
Individuals who qualify as Resident but Not Ordinarily Resident (RNOR) or Non-Resident Indian (NRI).
Taxpayers with total income exceeding ₹50 lakh.
Who Should NOT File ITR-2?
ITR-2 is not applicable if:
You earn income from a business or profession (proprietorship).
You opt for the Presumptive Taxation Scheme under Section 44AD, 44ADA, or 44AE (ITR-4 is applicable).
You represent an LLP or company.
Key Features of ITR-2
No Business/Professional Income: Suitable for taxpayers with income other than business or professional earnings.
Comprehensive Filing: Caters to taxpayers with multiple income streams, including capital gains and foreign assets.
Online and Offline Filing:
Can be filed through the Income Tax e-Filing Portal.
Utility software for offline preparation is also available.
Detailed Reporting: Requires disclosure of income, deductions, tax payments, and investments.
Who Should NOT File ITR-1?
ITR-1 is not applicable to the following:
Non-Resident Indians (NRIs) or Resident but Not Ordinarily Resident (RNOR).
Individuals with income:
Above ₹50 lakh.
From more than one house property.
From capital gains (short-term or long-term).
From business or profession (including presumptive income under Section 44AD,
44ADA, or 44AE). From winnings such as lotteries, horse races, etc.
Those with foreign assets or foreign income.
Those claiming relief under Double Taxation Avoidance Agreement (DTAA).
Those with agricultural income exceeding ₹5,000.
Directors in a company or holding unlisted equity shares.
Structure of ITR-2
The ITR-2 form is divided into various sections to facilitate detailed reporting:
Part A: General Information
Personal details (name, PAN, Aadhaar, address, filing section, etc.).
Filing status: Original or revised return.
Residential status.
Part B: Gross Total Income
Income from all sources (salary, house property, capital gains, other sources, etc.).
Exempt income under Section 10 (e.g., agricultural income).
Schedules in ITR-2
Schedule S: Salary or pension income.
Schedule HP: Income from one or more house properties.
Schedule CG: Short-term and long-term capital gains.
Schedule OS: Income from other sources (interest, dividend, etc.).
Schedule AMT/AMTC: Alternate Minimum Tax and tax credit.
Schedule SI: Special income subject to special tax rates (e.g., lottery income).
Schedule EI: Exempt income details (e.g., agricultural income, PPF interest).
Schedule FA: Details of foreign assets and income from outside India.
Schedule 80G: Deductions under Section 80G for donations.
Schedule VI-A: Deductions under Chapter VI-A (e.g., 80C, 80D).
Part C: Tax Computation and Tax Status
Total tax liability.
Tax deducted at source (TDS) and tax paid details.
Refund or additional tax payable.
Advantages of ITR-2
Comprehensive Coverage: Suitable for taxpayers with multiple and complex income sources.
Global Compliance: Ideal for NRIs or those with foreign income/assets.
Detailed Deductions: Allows reporting of exemptions and deductions comprehensively.
FAQs
1. Can I file ITR-2 if I have income from a partnership firm?
Yes, if you are a partner in a partnership firm and do not have business income.
2. Is it mandatory to disclose foreign assets in ITR-2?
Yes, if you are a resident taxpayer and own foreign assets or earn foreign income, it must be disclosed under Schedule FA.
3. Can I use ITR-2 for capital gains reporting?
