What is ITR-2 Filing?

ITR 2 Form is an Important form income tax return form that is used by the Indian Citizens as well as the NRIs to file the return with the Income-tax department of India. The taxpayers who are not eligible to file ITR 1 can file ITR 1 to file the income tax returns. ITR 2 can be filed by the individuals and Hindu Undivided Families who have their income for the financial year through salary, pension, more than one property, income from capital gains, income from foreign assets, business or income from a profession as a partner and other sources that include lottery, Racehorses, legal gambling.

Also, an individual who is not eligible to file using ITR 1 as the income is exceeding Rs.50 Lakh can file ITR 2 Form.

Who can file Form ITR-2?

ITR 1 Sahaj Form cannot be filed by the following:

An individual with an income of more than Rs.50 lakh cannot use this ITR 1 Sahaj 1 Form.

An individual who is a Director of a Company and has held unlisted equity shares during the financial years cannot use this form.

Residents who are not ordinary residents and non-residents also cannot file ITR 1 Sahaj Form.

Individuals who earned income through the following sources cannot file ITR 1 :

House property more than one
Lottery, Racehorses, Legal Gambling, etc.
Taxable capital gains ( Both short term and long term)
An individual who is a resident of India and has assets outside India or the signing authority in any account based out of India
Individuals claiming relief of foreign tax paid or double taxation relief under Section 90/90A/91.

Who is not eligible to file Form ITR-2?

Any individual or Hindu Undivided Family with income that is fully or partially earned from the business or profession.
Individuals that are eligible to file ITR 1 Form.
Individuals who are partners in a Partnership Firm.

How to file Form ITR 2?

The ITR 2 Form can be filed with the Income Tax Department either online or offline:

1. Either by furnishing the return in a paper for. When paper returns are made at the time of submission of the paper returns an acknowledgment is issued by the Income Tax Department to the assessee.
2. By furnishing the return electronically using the Digital Signature. ITR 2 forms are submitted by the assessee electronically using the Digital Signature Certificate an acknowledgment is received to the registered Email Id.
3. It can also be done by transmitting the data in the return electronically under an electronic verification code.
4. It can be done by transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR V.
5. By furnishing a bar-coded return.

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.

Document Required for ITR-2 Return Filing

Form 16

Bank Statement

Details of Other Income

Home Loan Repayment Schedule

Rental Receipts

Donation Receipts

Insurance Payments

Mutual Fund Investments

Medical Bills

School / College Bills

Salary Slips