ITR-2 Return Filing

Who is qualified to file ITR 2?

Unlike ITR- 1, both individuals and HUFs can use ITR 2. The sources of income to be eligible for ITR -2 are as follows:-

1. The following sources of income that exceeds Rs 50 lakh in total:

• Salary or Pension Income
• Income from House Property
• Other sources of income such as – earnings from winning lottery or horse races

1. Agricultural Income exceeding 5000 Rs
2. Income from foreign assets and overseas investments or any other source 
3. If a taxpayer is a company’s director
4. Someone who is not ordinarily resident and non-resident of India
5. Profit on capital investments

Furthermore, if the taxpayer A’s income is summed with another taxpayer B’s income and if taxpayer B has one of the above income sources then taxpayer A must also file ITR – 2. Taxpayer B could be the taxpayer’s spouse, kid, or other relatives whose income is combined with the taxpayer A’s.

Under which circumstances one isn’t required to file ITR 2?

A taxpayer will not have to pay ITR 2 under the following circumstances:

• If the source of income for the Individual taxpayers or HUFs is a business or profession. If other factors align then, the individual taxpayer or HUF will be required to file ITR 3 or ITR 5 instead.
•  If an Individual taxpayers or HUFs is eligible to file ITR 1 then are not allowed to file ITR 2.

What is the ITR 2 Form’s structure?

ITR 2 form is divided into two parts; the Part A contains basic information of the assessee, while part B computes total earnings and the tax due on total income. Let’s see the structure in details:-

 The ITR-2 Form is made up of 22 parts:

• Part A: This area soughts general information.
• Part B-TI: This section has the details to calulate the total revenue.
• TTI Part B: In this section you can find out the total tax you need to pay on your income.
• Schedule S: This section shares the information on the income from your job.
• HP Schedule: This part shows income that is earned from house.
• Schedule CG: This part involves calculating the capital gains income.
• Schedule OS: This section involves calculating revenue from all other sources.
• Schedule CYLA: This part shows Income after current-year losses are deducted
• Schedule BFLA: Income after set-off of the previous year’s brought-forward losses.
• Schedule CFL: It shows the losses which will continue to incurred in the future.
• VIA Schedule: The deductions of Section VI-A are covered here.
• 80G Schedule: This section contains information on the donations that are tax-deductible under Section 80G.
• Schedule SPI: This includes information regarding the earnings of specific individuals, such as minors, spouses, etc.
• Schedule SI: Contains information on income subject to special rates of taxation.
• Schedule EI: Contains information on exempt income.
• Schedule IT: Contains the self-assessment and advance tax payment tax statement.
• Schedule TDS1: This includes TDS or tax deducted at source on the salary.
• Schedule TDS2: Contains the tax deducted at source on non-salary income.
• FSI schedule: Information on tax exemptions and income earned outside of India.
• TR schedule: This document summarises tax relief claims for taxes paid outside of India.
• FA Schedule: This section contains information on foreign assets and data from any other source outside of India.
• 5A Schedule: This covers information on how the Portuguese Civil Code divides money between couples.

Filing Mode

A taxpayer has multiple options of filling out Form ITR-2. They can file it both online or offline. ITR-2 Form can be downloaded from either the government’s income-tax e-filing portal or other tax filing websites in the online mode. Some information is already ore filled such as the taxpayer’s details as well as more information on salary income, dividend income, interest income, capital gains, and so on.

How to File ITR 2 Form Online?

The ‘Prepare and Submit Online’ option is available. You have to enter the necessary information immediately into the e-filing page and submit it.

To prepare and file an ITR-2, follow the steps below:

• First step is to visit the IT e-Filing website.
• Login to the online filing portal by entering your user ID that is PAN, password, and captcha code.
• Select the ‘Income Tax Return’ link under the ‘e-File’ option.
• PAN will be prefilled on the Income Tax Return Page. Choose ‘Assessment Year’ and ‘ITR Form Number’ from the dropdown menu.
•  In the ‘Filing Type’ select ‘Original/Revised Return’
• Select ‘Prepare and Submit Online’ as your submission mode.
• Continue by clicking the ‘Continue’ button.
• Read the instructions carefully and fill the information correctly. This is the step that requires complete attention.
• In order to prevent losing data or having to redo work due to a session timeout, click ‘Preserve Draft’ regularly. Until the notified ITR’s XML schema is not changed (whichever is earlier) or until the return is filed, the stored draft will remain available for 30 days from the saving date.
•  Select the appropriate Verification option from the ‘Taxes Paid and Verification’ page.
• You can find out your Income Tax Return by selecting one of the following options: I’d like to e-Verify my application within 120 days of filing.
• Select I do not wish to use e-Verify and instead prefer to mail a signed ITR-V to "Centralized Processing Center, Income Tax Department, Bengaluru – 560 500′′ within 120 days after filing.
• Double check all details entered in the ITR by clicking the ‘Preview and Submit’ button.
• Finally, click on ‘Submit’ the ITR.

You can e-verify your income tax return after it has been filed using the following methods:

• In order to complete e-Verification, select the ‘I’d like to E-Verify’ option and provide your EVC/OTP when prompted. In the My Account section of the Aadhaar OTP, Prevalidated Bank Account, or Prevalidated Demat Account, you have the option to generate EVC using the Generate EVC option.
• Filing an ITR cannot be completed until it is validated, so it must be submitted to CPC, Bengaluru after signing or e-verified online through ‘My Account > e-Verify Return’.
• The Income Tax Return (ITR) will be automatically submitted if the EVC/OTP is not entered within 60 seconds.

Frequently Asked Questions