ITR 2: Get Complete guide on ITR 2 Form. Click here & know everything about ITR 2 form in India, including the instructions to fill the form, how to download the form & how to file ITR-2 form offline & online.
Rahul has recently started his business. For the last few days, he has heard about filing the tax returns. Rahul is a bit clueless about why returns are filed. He is not well versed with the process either. Rahul got in touch with Raj who is a chartered accountant. Raj helped him understand the process of filing returns.
But why are returns filed? ITR is a statement of from different sources, tax liabilities, income tax paid and the refunds provided by the government. ITR serves as a proof of legal and disclosed income.
Returns have to be filed using the Income Tax Return of ITR Forms. Failure to file the returns can result in penalties from the IT department.
Who can file ITR?
As per the current law, income tax returns have to be filed mandatorily in the following circumstances:
– As an individual, the gross total income (prior to deductions under section 80C to 80U) exceeds Rs 2.5 lakhs in FY 2018-19. If you are a senior citizen (above 60 years and below 80 years), this limit is Rs 3 lakh. If you are above 80 years, the limit is Rs 5 lakhs. This is also applicable to NRIs. – As a company or a firm. The profit or loss during the financial year is immaterial. – If you want to claim an income tax refund; – For carrying forward a loss under a head of income – If you are a Resident individual and have an asset or financial interest in an entity located outside of India or have a signing authority for a foreign account.
– As a foreign company who wants to take treaty benefit on a transaction in India
Returns have to be filed even if the income is received from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not for profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust.
Please note that the eligibility for filing ITR is subject to notification from the government. Ensure that you are abreast with the requirements of the relevant financial year. Gross total income is only one of the criteria of eligibility. Check if any other criteria apply to you. Failure to file ITR attracts penalties.
How to download Form ITR-2
As seen above, the eligibility to file ITR is based on the age (in case of individuals) and source of income. To make the process easier, the IT department has tax payers based on the amount of income. ITR Form 2 is meant for individuals and HUF who receive income other than income from “Profits and Gains from Business or Profession”. People who receive income from following sources are eligible to file Form ITR 2:
– Income from Salary/Pension – Income from House Property(this can be from more than one house property) – Income from Capital Gains/loss on sale of investments/property – Income from Other Sources (including winning from Lottery, bets on Race Horses and other legal means of gambling) – Foreign Assets/Foreign Income – Agricultural Income more than Rs 5000 – Resident not ordinarily resident and a Non-resident
– A Director of listed and unlisted companies will be required to file their returns in ITR-2.
The persons who are under the following heads are not eligible to file ITR-2: – If the individual or HUF has income from business or profession
– Any taxpayer who is eligible to file returns through Form ITR-1
Form ITR-2 is available on the Income Tax Department website. By following the steps below, you can download Form ITR-2 in a few minutes:
Step 1: Log on to https://www.incometaxindiaefiling.gov.in/home
Step 2: Under the Download tab, click “Offline Utilities”
Step 3: Click “Income Tax Return Preparation Utilities”
Step 4: Select your Assessment Year
Step 5: Click “Excel Utility” for filling the details by hand under ITR 2 column and download the file
Step 6: Extract the downloaded file and fill in the details
Dates for filing ITR-2 form
Duly completed Form ITR-2 should be submitted by 31st July. The form filed relates taxes paid in the previous year. For example, if the income was earned anytime between April 1, 2018 and March 31, 2019, the assessment year for the same would be 2018-19. In this case, the ITR-2 Form needs to be submitted on or before 31st July, 2019.
Always remember to stick to the deadlines. It is human nature to procrastinate. Post the deadline, tax returns can be as a “Belated Return” any time before 31st March, 2020. However, a penalty has to be paid.
If the tax returns are filed after the due date, a maximum penalty of Rs 10,000 will be imposed. If the return is filed after the due date but before December 31, a fine of Rs 5,000 shall be paid. If the return is filed after December 31, the fine would be Rs. 10,000. If your total income does not exceed Rs 5 lakh, the maximum amount of penalty to be paid is Rs. 1000.
As they say, early bird catches the worm. To avoid paying additional penalty, stick to the timelines prescribed.
Structure of ITR-2
There are four sections of Form ITR-2. The contents of each section are set out below:
– Part A: General Information – Part B-TI: Computation of Total Income – Part B-TTI: Computation of tax liability on total income – Details to be filled if the return has been prepared by a Tax Return Preparer – Schedule S: Details of income from salaries – Schedule HP: Details of income from House Property – Schedule CG: Computation of income under Capital gains – Schedule OS: Computation of income under Income from other sources – Schedule CYLA: Statement of income after set off of current year’s losses – Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years – Schedule CFL: Statement of losses to be carried forward to future years – Schedule VIA: Statement of deductions (from total income) under Chapter VIA – Schedule 80G: Statement of donations entitled for deduction under section 80G – Schedule 80GGA: Statement of donations for scientific research or rural development – Schedule AMT: Computation of Alternate Minimum Tax payable under section 115JC – Schedule AMTC: Computation of tax credit under section 115JD – Schedule SPI: Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of the assessee in – Schedules-HP, CG and OS – Schedule SI: Statement of income which is chargeable to tax at special rates – Schedule EI: Details of Exempt Income – Schedule PTI: Pass through income details from business trust or investment fund as per Section 115UA, 115UB – Schedule FSI: Statement of income accruing or arising outside India. – Schedule TR: Details of taxes paid outside India – Schedule FA: Details of Foreign Assets and income from any source outside India – Schedule 5A: Statement of apportionment of income between spouses governed by Portuguese Civil Code
– Schedule AL: Asset and liability at the year-end (applicable in case income exceeds Rs 50 lakhs)
How to fill Form ITR-2
The sections of the form are self explanatory. We have set out below general guidance on how to fill Form ITR-2:
– All items must be filled in the manner indicated. Else, the return maybe liable to be held defective or even invalid. – If any item is inapplicable, please write “NA” against the same – All figures should be rounded off to the nearest one rupee. However, the figures for total income/ loss and tax payable be finally rounded off to the nearest multiple of ten rupees. – It is advised that the following sequence is followed when filling the details: (a) Part A- General on page 1. (b) Part B-TI and Part B-TTI (c) Verification (d) Details relating to TRP and counter signature of TRP if return is prepared by him and (e) Schedules – For PART B-TI-COMPUTATION OF TOTAL INCOME : Indicate the summary of income computed under various heads and as set off in Schedule CFLA and Schedule BFLA
– For PART B-TTI-COMPUTATION OF TAX LIABILITY ON TOTAL INCOME:
For 1a, you need to fill the tax liability. The same should be computed at the applicable rate on the amount of aggregate income. The formula to be applied is as follows:
In case of every individual (other than resident individual who is of the age of 60 years or more at any time during FY 2017-18):
|Upto Rs. 2,50,000||Nil|
|Between Rs. 2,50,001 – Rs. 5,00,000||5% of income in excess of Rs.2,50,000|
|Between Rs. 5,00,001 – Rs. 10,00,000||Rs. 12,500 + 20% of income in excess of Rs. 5,00,000|
|Above Rs.10,00,000||Rs. 1,12,500 + 30% of income in excess of Rs.10,00,000|
In case of resident individual who is of the age of 60 years or more but less than 80 years at any time during the financial year 2017-18:
|Upto Rs. 3,00,000||Nil|
|Between Rs.3,00,001– Rs. 5,00,000||5% of income in excess of Rs.3,00,000|
|Between Rs. 5,00,001 – Rs. 10,00,000||Rs. 10,000 + 20% of income in excess of Rs. 5,00,000|
|Above Rs.10,00,000||Rs.1,10,000 + 30% of income in excess of Rs.10,00,000|
In case of resident individual who is of the age of 80 years or more at any time during the financial year 2017-18:
|Upto Rs. 5,00,000||Nil|
|Between Rs. 5,00,001 – Rs. 10,00,000||20% of income in excess of Rs. 5,00,000|
|Above Rs.10,00,000||Rs.1,00,000 + 30% of income in excess of Rs.10,00,000|
– Schedule-S: If there were than one employer during the year, details of the last employer have to be provided. Further, in case, there were more than one employer simultaneously during the year, details of the employer from whom the taxpayer has received have got more salary has to be provided. Salary should be provided as given in Form 16 issued by the employer(s).
Income tax department has detailed guidance on how to fill the rest of the schedules available on their website. Make sure you check it out before you fill in those.
How to file ITR-? Offline
ITR-2 can be filed offline by individuals who are 80 years or more. Return can be filed offline by:
– By furnishing a return in a physical paper form
– By furnishing a bar-coded return
If you want to file ITR-2 through offline or physical process, follow the steps given below: – The form should be collected from the Income Tax Office. It can be also download from the income tax website incometaxindia.gov.in – Once you fill in the details, submit the form to the Assessing Officer concerned or to designated helpdesks known as “Aaykar Sampark Kendra”. – An acknowledgement form, which contains the summary of the ITR, should be submitted along with the ITR
– A stamped copy of the acknowledgement form is given back to the assessee after the submission.
How to file ITR-2 online?
You can also file Form ITR-2 online by: – furnishing the return electronically under digital signature
– transmitting the data electronically and then submitting the verification of the return in ITR-V
If ITR-2 is submitted electronically under digital signature, the acknowledgement will be sent to your registered email id. You can also choose to download it manually from the income tax website. You can sign the acknowledgment and mail it to Income Tax Department’s CPC office in Bangalore within 120 days of e-filing.
ITR-2 is an annexure-less form. No annexure have to be attached along with the form.
What is the difference between ITR-1 and ITR-2?
ITR-2 is to be filed by individual or HUF:
a) Who is not eligible to file ITR 1 Sahaj; and
b) do not have any income from Business or Profession.
What are the changes that have been introduced in Form ITR-2 in case of residents?
Residential status has been categorised into “Residential status in India (for Individuals)” and “Residential status in India (for HUF)”.
If the taxpayer falls “Residential status in India (for Individuals)”, there are three sub-categories to choose from – “Resident”, “Resident but not Ordinarily Resident’ and “Non-resident”. Taxpayers have to also mention the number of days of residency in India. In case of non-resident, an individual is also required to specify the jurisdiction(s) of residence during the previous year providing the Taxpayer Identification Number(s) of the relevant jurisdictions. In case the individual is a Citizen of India or a Person of Indian Origin (PIO), the duration of stay in India during the previous year (in days) and the duration of stay in India during the 4 preceding years (in days) must be mentioned.
What are the new heads of income which have been included under Schedule SI?
The following incomes charged at special rates are added:
– Short term and long-term capital gains – Any other income chargeable at special rates – Other sources of income chargeable at special rates – Other sources of income chargeable at special rates in India as per DTAA
– Pass through income in the nature of long term and short-term capital gains through income in the nature of income from other sources
Are there any disclosures that have to be provided in the event the agricultural income exceeds Rs 5 lakh?
Following disclosures have to be made: – Name of district along with pin code in which agricultural land is located – Measurement of agricultural land in Acre – Whether the agricultural land is owned or held on lease
– Whether the agricultural land is irrigated or rain-fed
Please note that these disclosures have to be provided separately for each agricultural land.
I have sold a property in FY 2018-19. Am I required to provide any details in Form ITR-2?
Where a property has been sold in FY 2018-19, the taxpayer has to provide complete details of the buyer to whom the property has been sold.
Do I need to provide investment details in case I hold shares in an unlisted company?
Yes, you are required to disclose the details of your holdings in ITR-2. The following details have to be provided: name of the company, PAN of the company, number and cost of acquisition at the beginning of the year, number of shares, face value, issue price (or purchase price) and date of purchase of shares acquired during the year, number and sale consideration of shares transferred during the year, number and cost of acquisition of shares held at the end of previous year.