What is ITR2 Form How to file ITR-2 Online and Offline
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What is ITR2 Form How to file ITR-2 Online and Offline

Insurance Basics & Financial Advice Taxpayers in India fall under a certain income bracket. Based on the bracket and income sources, the Income Tax department has specified Income Tax Return forms or ITR Forms for individuals, Hindu Undivided Family, and businesses.

What is ITR2 Form? How to file ITR-2 Online and Offline?

8 Minute |

What is ITR2 Form? How to file ITR-2 Online and Offline?

What is ITR 2 Form

Taxpayers in India fall under a certain income bracket. Based on the bracket and income sources, the Income Tax department has specified Income Tax Return forms or ITR Forms for individuals, Hindu Undivided Family, and businesses.

Each of the ITR forms has its own eligibility criteria. For instance, ITR-1 Sahaj is for individuals who earn income through salary, one house property, or income from other sources like interest or dividends.

Similarly, the ITR-2 form is to be filled by individuals, Hindu Undivided Families, who do not fall in the eligibility of ITR-1 and have received capital gains.

Explained below are the ITR 2 meaning, the eligibility to file ITR-2, and the various components of this form.

What is the structure of the ITR 2 Form?

Like most ITR forms, ITR-2 Form is also divided into two parts. Part A and Part B.

Part A will contain all the personal details, Name, Address, Permanent Account Number, Aadhaar Number, Mobile Number, Email, etc.

Following this is the filing information of the form. The questions concern the section under which you are filing ITR-2 and the reason for filing ITR-2 Form. You will find questions like Residential Status in India, HUF, if you have any unlisted shares and the details of it.

Post this section, you will find the multiple schedules with respect to the income earned through salary, house property, capital gains, and income from other sources. One of the schedules also mentions details of the set-off of losses.

After the income details, the next schedule is the list of deductions you claim that year. There is also a portion where you will need to list the details of foreign assets and any income source from outside India.

Part B of the ITR-2 form is the computation of total income tax, computation of tax liability, details of bank accounts, any advance tax paid, and TDS deducted as per Form 16, Form 16 A, and Form 16 B.

ITR 2 Form Eligibility

To file Income Tax in India, you will need to meet the eligibility as set by the Income Tax Department. The eligibility for the ITR-2 form is as below:

Individuals and Hindu Undivided Family whose income for a particular financial year is earned from

  1. Salary/Pension
  2. One House Property
  3. Other Sources like Interest from deposits account, dividends, etc.
  4. Other Sources include winning from Lottery, horse racing, etc
  5. Foreign Assets.

The ITR-2 form is also the right income tax form for salary and capital gain earnings in a particular financial year.

ITR-2 can be jointly filed with a spouse or minor child, provided the source of income is the same and is from the ones mentioned above. If there is any difference or change, a separate form will be filed by the individual.

Who is not eligible to file the ITR 2 Return?

The following individuals are not eligible to file ITR-2

  • Any individual eligible to file ITR -1 (Sahaj) form
  • Any individual who has earnings from profits or gains from a business a profession
  • Any individual who is a partner in a company.

What are the Components of the ITR-2 Form?

General personal details, income details, and deductions form the components of the ITR-2 Form.

They are categorised as follows:

  1. Part A:
    • General Information like Name of the Tax Payer, PAN of the Tax Payer, Address, Date of Birth, Status of the taxpayer (if Individual or HUF), Aadhar Number, Mobile Number, and Email Address.
    • Filing Status: You will find the various options and sections under which you are choosing to file the income tax return, Residential Status
    • Schedule S: Details of Income earned from salary/pension, where you will find the name of the employer, address, TAN Number, and details of the salary earned as well as the exemptions applicable in the financial year. Do note that under Section 115BAC, a number of the deductions cannot be claimed.
    • Schedule HP: Details of the income earned from House Property. You will have to mention the value of the house, rent received, details of the tenant, etc. The deduction here will include any tax paid to the local government body, for example, a paid property tax.
    • Schedule CG: This portion of the ITR -2 form details all the Capital Gains you earned in the financial year. This is further divided into:
      1. Short Term Capital Gain on the sale of land or building or both
      2. Long Term Capital Gain on the sale of land or building or both
      3. Schedule 112A is where you must mention details of the sale of equity shares in a company or a business trust on which security transaction tax has been paid.
      4. Schedule 115AD: This part is for non-residents who have made a sale of equity shares in a company, unit of equity, or business trust on which STT was paid.
    • Schedule OS: Details of the income that has been earned from Other Sources. This portion will include Dividends, Interest from Bank, Fixed Deposits, Interest accrued on Provident Fund, Rental Income, Family Pension, Winnings as income from lotteries, crossword puzzles, etc.
    • Schedule CYLA: Details of Income after Set off from Current Year Losses. This is the current year's loss adjustment.
    • Schedule BFLA: Details of income after offsetting carried forward losses from previous years. This is the Loss brought Forward from past years
    • Schedule CFLA: Details of losses that will be carried forward to upcoming years. This will be the amount of loss carried forward in the future.
    • Schedule VI-A: This is the list of deductions under Chapter VI-A that you can avail of under the old tax regime. This includes Section 80C, Section 80CCC, Section 80CCD, Section 80CCD (1), Section 80CCD (1B), Section 80CCD (2) Section 80D, Section 80DD, Section 80DDB, Section 80E, Section 80EE, Section 80EEA, Section 80EEB, Section 80G, Section 80GG, Section 80GGA, Section 80GGC, Section QQB, Section 80RRB, Section 80TTA, Section80TTB and Section 80U.
    • Details of Donations under Section 80G and Section 80GGA.
    • Schedule AMT: Computation of Alternate Minimum Tax payable under section 115JC, which is special provision for payment of Tax of certain persons
    • Schedule AMTC: Computation of tax credit
    • Schedule SPI: Details of the income of the spouse or child, which will be included in the taxpayers ITR
    • Schedule SI: This section holds the information about income that is taxable under special rates
    • Schedule EI: Details of the income exempt in the ITR-2 will be mentioned here
    • Schedule PTI: Any income earned from a business trust or investment fund will be detailed here
    • Schedule FSI: If the taxpayer is a resident of India, they will need to fill in the details of income received from outside the country and tax relief they can claim here
    • Schedule TR: List of Tax relief claimed for any tax paid outside India
    • Schedule FA: Details of foreign assets and income held outside the country
    • Schedule 5A: Details about the distribution of income between spouses governed by the Portuguese Civil Code
    • Schedule AL: List of Assets and Liabilities, when the income is more than Rs 50 Lakhs
    • Schedule Tax Deferred on ESOPs: Income received on ESOP from the company.
  2. Part B:
    • Part B-T1: This section contains the calculation of the total income. The data should match what is included in the various Schedules of Part A
    • Part B-TT1: Computation of the tax liabilities is done in this segment. This is followed by the Surcharges and Cess. There is also a section of the taxes paid throughout the year in the form of TDS, TCS, Advance Tax, or self-Assessment Tax

Details of the Bank Account and details of the Taxes payments done are a part of this schedule.

Documents required to file ITR 2 Form

To file ITR-2, you will require the following documents:

  • If your income is in the form of salary, you will need Form 16 from the employer
  • For any TDS deducted on other sources of income like rent, interest, or commission, you will need Form 16A from the deductee
  • Form 16B when TDS is paid against the purchase/sale of property
  • Form 26AS to get a consolidation of the taxes paid in the form of TCS/TDS
  • If you are claiming HRA, rent receipts
  • If you have rented your premises, then the tax payment receipt
  • Interest certificate if the house is purchased on loan
  • Statement of account of saving account, fixed deposit to know the interest received
  • Since Capital Gains in ITR Form has to be filled, you will need a summary of the profit/loss of the transaction and any computation.
  • If you are claiming any loss in the current filing, relevant documents, and computation
  • If you are claiming a loss for the previous year, ITR-V pertaining to that year
  • Proof of tax deductions applicable to your income.
How to file ITR 2 offline?

To file ITR Offline, you will need to use Offline Utility for ITRs.

  1. You can get the Offline Utility on the income tax website https://www.incometax.gov.in/iec/foportal/downloads/income-tax-returns
  2. Install the offline utility on your computer. If you have a previous version, it will get updated
  3. Once it is installed, you will see the contents and the tabs where you will find the ITR forms. You can file a new return by clicking File Returns, Edit existing returns, and Pre-filled Data, where you will see your pre-filled ITR information.
  4. Since you are filing a new return, click on File Returns under the Returns Tab and select Pre-filled Data or Import Pre-filled Data or Import Draft ITR in online mode
  5. If you are downloading Pre-Filled Data or importing pre-filled data, download the sheet and click continue
    1. Enter PAN and Select Assessment Year
    2. You will be taken to a login page
    3. Once logged in, you will see your data for the PAN and AY, and click on File Return
    4. You will be directed to the filing page, where you will need to fill in the details and complete the process.
  6. Select the status applicable to you and click continue
  7. You will see two options: Help me to decide which ITR form to file, and I know which ITR I need to File.
  8. Since you are filing ITR-2, you will see a list of documents
  9. Select the reason for filing that form and click Continue
  10. Fill in the required details
  11. When you see the ‘Confirm Your Return Summary’ page, you will also see the computation depending on the details you filled in. If you need to pay any tax, you will need to choose ‘Pay Now’ or ‘Pay Later’. If you choose to Pay Now, note your payment details and Challan number.
  12. You will see a Preview Submit your return and move to Validation
  13. During this time, the system will check for any errors. If there are errors, you will be taken back to the form to correct them. If not, your validation has been successful.
  14. Once successful, proceed to verification
  15. After verification, you will be redirected to the e-filing portal of income tax
  16. Click on Upload Return
  17. You will have to e-verify your return after the filing is done.

How to file ITR 2 online?

To file ITR-2 Online,

  1. Login to the e-filing portal using your PAN, Password, and Captcha, and click Login
  2. Click on ‘e-file’ and choose Income Tax Return
  3. Select the Assessment Year and ITR-2
  4. When you see the filing type, choose Original/revised Return
  5. Select Prepare and Submit Online as Submission Mode and Continue
  6. Fill in the form with the necessary details. Make sure you click on Save as Draft occasionally. This ensures that you do not lose any data
  7. Once data is filled and computation is done, you will know if there is any tax liability to be paid
  8. Once taxes are paid, you will need to choose how you wish to verify your ITR
  9. Verification can be done online or offline within 120 days of filing.
  10. Click Preview and check the information
  11. Lastly, Submit the return

Instructions to fill out the ITR 2 Form

To fill out the ITR-2 Form, you will need to remember the following:

  1. Assessment Year: The return will be filed for the income earned in the financial year.
  2. Eligibility: Who is eligible and not eligible to file ITR-2
  3. Manner of Filing: Form ITR-2 can be filled online and offline
  4. Key Changes in the form from the previous assessment year
  5. Filing of ITR-V, Income Tax Verification Form
  6. The obligation to file the return gives you a break-up of the income slab applicable to the taxpayer under the old and new tax regime
  7. Instructions pertaining to the filing of Part A and Part B with the various schedules are also available from the Income Tax site.

Methods of filing the ITR 2 Form

You can file your ITR-2 through two methods:

Online Mode- This can be done through the e-filing portal of the Income Tax Department.

Offline Mode: You will need to download the Offline Utility for ITR from the Income Tax site.

FAQs

Can the ITR 2 Form be filled out online?

Yes, ITR-2 can be filled out online.

What is the structure of the ITR 2 Form?

ITR-2 is categorised into two Parts.

Part A is the General Information and information with respect to the income earned under various heads. There are also various schedules under this segment to fill in the details.

Part B is the computation of the Total income earned and its Tax Liability. Based on this, you will know if you are liable to pay any tax liability or receive a refund.

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