ITR-2 Return

ITR-2 Return

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  • Schedule S - Income from Salary
  • Schedule CG - Capital Gains
  • Schedule CG - Capital Gains
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What is ITR-2?

ITR-2 is an income tax return form used by individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession. It covers income from salaries, house property, capital gains, and other sources. This form is not applicable for those with income from business or professional activities (for that, ITR-3 or ITR-4 may apply).

Who Can File ITR-2?

Individuals and HUFs who:

  • Have income from salary or pension
  • Have income from house property (more than one house)
  • Have income from capital gains (short or long term)
  • Have income from other sources (interest, lottery winnings, etc.)
  • Have foreign assets or foreign income
  • Are directors in a company
  • Have investments in unlisted equity shares
  • Do not have income from a business or profession

Key Sections in ITR-2

Part A – General Information

    • Basic details: Name, PAN, Aadhaar number, address, etc.
    • Filing status: Individual or HUF, original or revised return, etc.
    • Residential status: Resident, non-resident, or resident but not ordinarily resident.

Part B-TI – Computation of Total Income

    • This part helps in calculating total taxable income by aggregating incomes under different heads:
      • Salary
      • House Property
      • Capital Gains
      • Other Sources

Schedule S – Income from Salary

    • Details regarding the income earned from salary or pension.

Schedule HP – Income from House Property

    • Details about the properties owned and income earned from house property, with deductions for interest on home loans.

Schedule CG – Capital Gains

    • For reporting capital gains from the sale of assets like property, stocks, mutual funds, etc. It can be categorized as short-term or long-term capital gains.

Schedule OS – Income from Other Sources

    • Reporting income like dividends, interest, and lottery winnings.

Schedule 80D to 80U – Deductions

    • Claimed deductions under various sections of Chapter VI-A such as:
      • 80C (investment in PPF, insurance, etc.)
      • 80D (medical insurance)
      • 80G (donations)
      • Other applicable deductions

Schedule FA – Foreign Assets and Income

    • Reporting details of foreign assets and income from any source outside India.

Schedule AMT and AMTC – Alternate Minimum Tax and Credit

    • Applicable for individuals whose adjusted total income exceeds ₹20 lakh.

Verification

    • Signature and declaration that all the information provided is true and correct.

Documents Needed to File ITR-2

  • Form 16: Issued by employers, it contains the details of salary and tax deducted.
  • Form 26AS: A consolidated tax statement showing the amount of tax deducted and deposited against the taxpayer’s PAN.
  • Capital Gains Statements: If applicable, from mutual funds or brokers.
  • Bank Account Details: For refunds or deductions, you must provide your bank account details.
  • TDS Certificates: For any TDS deducted on interest income, rent, etc.

Filing Process for ITR-2

Offline (Physical Filing): Only available for taxpayers above 80 years old or for those with an income below ₹5 lakhs and no refunds.

Online: Can be done via the income tax e-filing portal. The ITR-2 form can be filled and uploaded in XML format or directly through online mode.

Due Date for Filing ITR-2

  • For the Assessment Year 2024-25, the due date is 31st July 2024 (unless extended).

Penalties for Late Filing

If you fail to file the ITR by the due date, a penalty of ₹5,000 may apply. If your income is below ₹5 lakhs, the penalty will be restricted to ₹1,000. Interest may also be charged on any outstanding tax liabilities.

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