ITR 2 Form
A detailed overview of ITR 2 form
What is ITR 2?
An ITR-2 is an income tax return form used by individuals and Hindu Undivided Families (HUF) who are not involved in any profession or business. Its application is determined by the taxpayer’s classification and the source of Income. ITR-2 in income tax has the following structure.
To whom is ITR-2 applicable?
ITR-2 applies to Individuals or HUFs who receive Income other than “Profits and Gains from Business or Occupation.” This return form will apply to you if you receive Income from the following sources:
- Income from Salary / Pension.
- House property (It can be from one or more house properties).
- Income from capital gains/loss on sale of investments/property (short- and long-term).
- Income from other sources (like bets on horse races, lottery winning, and legal gambling methods).
- Foreign Assets Income.
- Agricultural Income which exceeds Rs. 5000.
- The profit share of the partner from a partnership firm.
- Resident not ordinarily resident and a Non-resident.
Structure of ITR 2
- Part-A: General Information
- Part B-TI: Computation of Total Income in respect of Income chargeable to tax
- Part B-TTI: Computation of tax liability on total Income.
- Details to be filled if the return has been prepared by a Tax Return Preparer (TRP)
- Schedule-S: Details of Income from head salaries
- Schedule HP: Details of Income from House Property
- Schedule-IF: Details of the partnership firm in which you are a partner
- Schedule-CG: Income under Capital gains
- Schedule-OS: Computation of Income under Income from other aspects
- Schedule CYLA: Statement of Income after set off of current year’s losses
- Schedule-BFLA: Income, after set off of an unabsorbed loss, brought forward from earlier years
- Schedule-CFL: Statement of losses to be carried forward to future years
- Schedule-VIA: Deductions from Total Income under Chapter VIA
- Schedule-80G: Statement of donations entitled for deduction u/s 80G
- Schedule-SPI: Income arising to spouse/ minor child/son’s wife or any other person or association of persons to include in the Income of the assessee in Schedule – HP, CG, and OS
- Schedule-SI: Statement of Income which is chargeable to special tax rates
- Schedule EI: Exempted Income details
- Schedule PTI: Pass through income details from the business trust or investment fund as per Section 115UA, 115UB
- Schedule-FSI: Statement of Income accruing or arising outside India.
- Schedule-TR: Taxes paid outside India information
- Schedule FA: Foreign Assets and income details
- Schedule-5A: Statement of apportionment of Income between spouses governed by the Portuguese Civil Code
- Schedule-AL: Asset and liability at the year-end (applicable in case income exceeding Rs 50 lakhs)
How to fill ITR 2?
- If any schedule does not apply to you while filling, strike it out and write — NA —
- The same applies if any items do not apply to you.
- Show nil figures by writing “Nil.”
- Indicate negative figures with the “-” sign.
- All figures are to be rounded off to the nearest one rupee except for total income/loss and tax payable. Those are to be rounded off to the nearest multiple of ten.
- If you are an individual under the Employer Category, you need to tick Government; if you are a Central/State Government employee. You must beat PSU if you work in a public sector company of the Central/State Government.
The ITR-2 Form can also not be used if you claim double taxation relief u/s 90/90A/91.
The best sequence to fill out the ITR-2 form is as follows:
- Firstly fill the Part -A, i.e., the general information
- All the schedules
- Part B-TI and Part B- TTI
- Lastly, fill out the verification part
ITR-2 filing
You can either file it online or offline. You can follow the step-by-step procedure to file your ITR. However, only taxpayers who are 80 years old or older are qualified for ITR 2 offline filing.
These persons can submit returns quickly using a hard copy of the ITR-2 form and a bar-coded return of Income earned. In addition, when an assessor offers this paper form, the IT department gives an acknowledgment.
Follow the steps below to file your ITR online:
1: Go to the official income tax e-filing website.
2: Enter your password and user ID (PAN).
3: Fill out the captcha that appears on the screen.
4: In the menu, select ‘e-File.’
5: Select ‘Income Tax Return.’
6: Your PAN information will be instantly updated on the Income Tax Return page.
7: Select’ Assessment Year,’ then ‘ITR Form Number.’
8: Select ‘Filing Type,’ then click ‘Original/Revised Return.’
9: Select ‘Continue.’
10: Carefully read the directions. Then, fill out the ITR-2 form by entering information in all relevant and required fields.
11: Regularly choose the Save Draft option to avoid losing data due to a session time-out.
12: Choose an appropriate verification option in the ‘Taxes Paid’ and ‘Verification’ sections.
13: Choose an appropriate option to verify your ITR.
14: Click the ‘Preview and Submit’ button.
15: Check to see if your ITR data is correct.
16: Then, press the ‘Submit’ button.
Steps for filing your ITR offline
1: Log in to the income tax e-filing website.
2: Go to ‘e-Nivaran’ and select ‘Downloads’ from the top menu.
3:Choose the assessment year from the drop-down menu.
4: Download the Microsoft Excel file in zip format. After extracting this file to your computer, open it.
5: Select ‘Enable Content’ and then the ‘Enable Macros’ option.
6: When you open the Excel file, remember to fill out the red fields and enter data in the green pastures. Data should also not be ‘cut’ or ‘pasted.’
7: Fill out the fields below each tab and click ‘Validate.’
8: Before calculating the tax, validate all of the tabs on this ITR form.
9: Create and save a file in XML format.
10: Enter the income tax e-filing portal.
11:Continue with the previously explained steps.
12: Choose ‘Original/Revised Return’ and click the ‘Submission Mode’ button.
13: Submit the Excel file by selecting the ‘Upload XML’ option. File ITR 2 as previously instructed.
ITR-2 is similar to regular ITR filing. Detailed steps can be found in this blog – ITR filing procedure
ITR due date
ITR-2 penalty
According to the new law, a penalty of Rs 5,000 will be levied if the return is filed after the due date but before December 31 of that year and Rs 10,000 after December 31. However, as a relief to small taxpayers, if your Income is at most Rs 5 lakh, the maximum penalty for late filing will be Rs 1,000.
And with that, we end our discussion on ITR 2 Form. If you have any questions, drop them in the comment section below.
