Demystifying Form ITR-2: A Guide to Income Tax Filing for Diverse Taxpayers

For numerous taxpayers, the process of completing even the most straightforward tax forms may be very complex, not to mention that the ITR-2 is already perceived as the most difficult form. The highly particular dedicated to this form and its peculiarities makes it imperative for people and Hindu Undivided Families (HUFs) with multiple income sources to have its specifications well understood, and the Form ITR-2 filed properly.

  1. What is Form ITR 2?

Form ITR-2 is used by the individuals or HUFs for Income Tax return filing Delhi who do not have income from profit or gains of business or profession and for those who cannot file ITR-1. It includes income from capital gains, foreign income, or any agricultural income exceeding Rs 5,000.

  1. Who are eligible & ineligible Taxpayers for Filing ITR 2 Online for AY 2024-25?

Eligibility: Those taxpayers who earn income from the below-mentioned sources can file the ITR-2 Form online. The details of income are as under:

Ineligibility: The taxpayers who are not required to file the ITR-2 form are as follows:

  1. What is the due date for Filing Form ITR 2 Online FY 2023-24?

ITR is required to be filed every year on or before 31st July being the last date for filing ITR (Non-audit cases). Further, belated ITR can be filed on or before 31st December if the due date of 31st July is missed.

  1. What is the significance for taxpayers in India to file tax returns?

ITR Filing requires the declaration of income from various sources other than income from business or profession, making it essential for taxpayers with diverse income streams.

  1. Who is eligible to file ITR-2, and what types of income are covered under the said ITR Form?

ITR-2 is applicable to individuals and HUFs who earn income from sources such as salary, house property, capital gains, and income from other sources excluding income from business or profession.

Taxpayers having income from business or profession should use other forms like ITR-3 or ITR-4, depending on their business structure and subject to the turnover limits as prescribed under the provisions of Income Tax Act, 1961.

  1. What are the important components of ITR-2?

ITR-2 includes various sections, including personal details of the taxpayers, income details from all the sources, Income tax computation, deductions availed due to investments, and tax payments. Taxpayers must provide accurate information in each section to ensure compliance with tax regulations.

  1. What documents are needed to file ITR-2?

Taxpayers need to collate documents such as Form 16 (for salary income) & Form 16A (for other than salary income), rental agreements (for house property income), broker statements such as Tax P&L (for capital gains), bank statements, and details of investments for availing deductions, home loans certificate, and insurance policies. These documents are important for reporting income and claiming deductions in an accurate manner.

  1. What personal details are required to be provided in filing Form ITR-2 online?

Taxpayer are required to provide details in personal details section. Taxpayers should provide information such as name of the assessee, address, PAN, Aadhaar number, and contact details. The taxpayer should also clarify whether the return is being filed by an individual or on behalf of an HUF.

  1. What income details need to be disclosed in ITR-2?

Taxpayers must provide complete breakdown of income such as salary, rental income from house property, capital gains, and income from other sources. Further, they should also declare exempt income to ensure accurate tax calculation & computation along with full diclosures.

  1. How is tax calculated in ITR-2?

Tax computation in ITR-2 involves calculating total income, after reducing deductions and exemptions as per the applicable provisions of the Income Tax Act, 1961 and determining the tax liability based on the applicable tax slabs. Tax will be computed after considering TDS (Tax Deducted at Source) and advance tax payments by the assesse/taxpayers.

  1. What schedules/sections in ITR-2 are important for claiming deductions and exemptions?

ITR-2 provides sections for claiming deductions in accordance with the provisions of the Income Tax Act, such as Section 80C (for investments), Section 80D (for health insurance premiums), 80CCD (For NPS), 80E(Interest on loan) and Section 80G (for donations).

  1. How can ITR-2 be filed electronically?

ITR-2 can be filed electronically by visiting the Income Tax Department’s e-filing portal. Taxpayer need to fill out the form online however it doesn’t required to upload any documents, and submit it electronically by verifying through aadhar OTP or other relevant mode. Alternatively, taxpayer can seek assistance from Taxcellent team for filing their returns.

  1. How to revise an ITR-2 filing?

A taxpayers can revise their ITR-2 within a specified period if any errors or omissions is discovered in the original filing. However, revised returns can also be filed online last by 31 December of the relevant assessment year and all the person filing revise return should ensure that the revised information is accurate and complete in all aspects.

Taxcellent assist you in filing Form ITR 2 online within the due time limit along with proper tax guidance. Taxcellent also assists you in filing a revised return if you have made an error in the original tax return filing.

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We have launched a range of Chartered Accountants Services for families along with a complete income tax filing product suite covering ITR-1 to ITR-7. With the launch of our families division, we aim to help millions of Indians with financial literacy, compliance and investment.

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