Taxpayers have been categorised by the Income tax department on the basis of various factors like income, source of income, and many more. This is done in order to ensure that there is easy compliance. Hence, different types of ITR forms are downloaded and filled by taxpayers having incomes of different types. For example, ITR-2 form is for those people and HUFs who do not have any business or profession. In this blog, we will learn more about the ITR-2 form.
Who can file ITR-2 form for 2023-24?
The ITR-2 form is filled by those individuals and HUFs who receive income from sources other than income from “Gains and Profits from Profession or Business.” The individuals who have some specific sources of income are eligible to file the ITR-2 Form. They are listed below:
- They have income from their salary or pensions that they receive.
- They have income that they receive from house property(he can possess one or more house properties)
- They have an income that they gain from capital or lose on sale of investments/property(either short term or long term)
- They earn income by winning a lottery, betting on race horses, and other gambling means that are legal
- They have a foreign income
- They have agricultural income that is more than Rs. 5000
- He is either a non-resident or not an ordinary resident.
- Also, a major change was introduced in ITR-2 Form and a those who have income from crypto or other virtual digital assets(VDA) can file for ITR-2 Form.
The gross total income from all the above sources may end up exceeding Rs. 50 lakh. Also, if you are a Director of some company and have invested in an unlisted equity share of a company, then you will have to file the ITR-2 Form.
Who is not eligible to file an ITR-2 Form?
The following individuals can not file an ITR-2 form in the assessment year 2023-24:
- Those individuals who are eligible to file the ITR-1 form also known as ‘SAHAJ’
- THose individuals or HUFs who earn their incomes from profession or business.
Composition of ITR-2 Form
The ITR-2 Form has been divided into the following parts:
- PART A: General Information
- Schedule S: Details of total income from salary
- Schedule HP: Income details from House properties
- Schedule CG: Calculation of income under capital gains
- Schedule OS: Calculation of income under income from other sources.
- Schedule CYLA: Income statement after cancelling out the losses of the current year
- Schedule BFLA: Income Statement after leaving out the unabsorbed loss brought forward from earlier years.
- Schedule CFL: Statement of the losses that need to be carried forward to future years.
- Schedule VIA: Statement of deductions from the total income under Chapter VIA
- Schedule 80G: Statement of donations that are entitled for deductions under Section 80G
- Schedule 80GGA: Statement of deductions that were meant for rural development or for scientific research
- Schedule AMT: Calculation of Alternate Minimum Tax that needs to be paid under Section 115JC
- Schedule AMTC: Calculation of tax credit under Section 115JD
- Schedule SPI: Statement of income that will arise to a minor child/spouse/wife of the on or someone else that need to be considered in schedules- HP, CG and OS.
- Schedule SI: The income that will be charged by taxes at a special rate
- Schedule EI: Details of Exempt Income
- Schedule PTI: Details of pass through income from business trusts under Sections 115UA and 115UB
- Schedule FSI: Statement of income earned abroad
- Schedule TR: Details of Taxes that are paid abroad
- Schedule FA: Details of the foreign assets and the income from other sources from abroad
- Schedule 5A: Statement of Apportionment between couples under the Portuguese Civil Code.
- Schedule AL: At the end of the year the amount of assets and liability (Only applicable if the income is more than Rs. 50 Lakh)
- Schedule DI: THis is for tax-saving investments or payments that are made in order to claim either deductions or exemptions in the increased time period under Section 80-IAC
- PART B-TI: Calculation of Total Income
- PART B-TTI: Calculation of tax liability on the total income
Documents needed to file an ITR-2 Form
The following listed documents are the required documents that are needed to file ITR-2 Form:
- A Copy of the income tax return of the last year
- Statement of bank
- TDS Certificate
- Savings/deductions Certificate
- An statement of interest that shows the interest paid throughout the year.
- A balance sheet, Account statement and other Audit reports that are applicable.
Process to file ITR-2 Form
The process to file ITR-2 Form is of two types i.e. either online or offline:
- BY offline means. You can file your ITR-2 form on paper. When you will submit the paper return, then the income tax department will issue you an acknowledgement.
- By online means. You can file an ITR-2 Form electronically with the help of your digital signature certificate. After this, you will receive an electronic acknowledgement from the income tax department on your registered email ID.
- By sending the data electronically in the return under the code for electronic verification.
- By transmitting the data electronically in the return and then, submitting the return verification in Form ITR-V.
- By submitting a bar-code return
How to file an ITR-2 Form?
The listed guidelines and steps need to be followed in order to File ITR-2 Form:
It is important to fill out the ITR-2 Form in a proper sequence as listed:
- PART A
- ALL THE SCHEDULES
- PART B-TI AND PART B-TTI
If a schedule does not apply to the applicant, then he will have to mention NA(Not Applicable). The applicant must mention NA against all the items that do not apply to him/her.
Also, all the figures in the amounts will be rounded off to the nearest one rupee except for tax payable and the loss or income which needs to be rounded off to nearest multiple of 10.