What is ITR 2?

In India, taxpayers are categorized based on Income, and specific Income Tax Return (ITR) forms are assigned to individuals according to their income sources. Among these forms, ITR-2 is designated for individuals and Hindu Undivided Families who do not generate Income from professional or business activities.

The ITR landscape includes seven different forms: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7. Each taxpayer is required to file their ITR on or before the specified due date. The choice of ITR form depends on factors such as the sources of income, the amount of income earned, and the taxpayer's category, which can include individuals, HUFs (Hindu Undivided Families), companies, and more.

Eligibility for ITR 2 Form

The ITR-2 form is tailored for individuals and Hindu Undivided Families (HUFs) whose Income is derived from sources other than 'Profits and Gains from Business or Profession.' If your Income originates from any of the following avenues, you are required to file the ITR-2 form:

Income from Salary or Pension

Income derived from house property, which may involve multiple properties.

Income from Capital Gains or losses incurred from the sale of investments or property, including both long-term and short-term gains/losses.

Income from Other Sources encompasses winnings from lotteries, bets on racehorses, and other legally recognized forms of gambling.

Receipts exceeding Rs 5,000 from agricultural activities.

Foreign Income or ownership of Foreign Assets.

Status as a Resident Not Ordinarily Resident (RNOR) or a Non-Resident.

Holding the position of a Director in both listed and unlisted companies.

Who Shouldn't File ITR 2?

Individuals or Hindu Undivided Families (HUFs) with Income stemming from business or professional activities.

Individuals are eligible to complete the ITR-1 form (Sahaj).

Structure of the ITR-2 Form

The ITR-2 Form comprises two primary sections, each containing specific segments and schedules:

Part A: This section encompasses general information, including your Name, Address, Date of Birth (DOB), PAN, Aadhar card, Contact Number, and Email Address.

Part B: This section calculates your total Income and the corresponding tax liability on your earnings.

Additionally, the form incorporates various schedules that provide detailed information on different income sources and deductions.

Part B-TI – Computation of Total Income:

In this section, your Gross Total Income is computed, considering earnings from salary, house property, and other sources. Total deductions for tax savings are then subtracted from your Gross Total Income to arrive at your Total Income.

Part B-TTI – Computation of Tax Liability:

Using your Total Income as the basis, your tax liability is calculated.

Documents Needed for Filing ITR-2

ITR-2 is an annexure-less form, so you don't need to attach any documents during submission. But, Before you begin the ITR-2 filing process, make sure you have the following documents and information on hand for hassle free filing:

Form 16/16A: These documents contain information about your salary and tax deductions (TDS).

Form 26AS/AIS/TIS: This statement provides crucial details regarding tax credits, TDS (Tax Deducted at Source), and other relevant tax-related data.

Bank Statements: Collect bank statements that reflect Income from interest, dividends, or other financial transactions.

Capital Gains Details: Gather the necessary transaction documents if you have sold assets like property or stocks.

Details of Foreign Assets and Income (if applicable): Collect the relevant documents if you have foreign assets or earned Income abroad.

Aadhaar Card, PAN Card, and Other Identification and Contact Information: Ensure you have these identification documents readily available for reference during the filing process.

Instructions for Completing the ITR-2 Form

Complete the form in the following order: Part A, all schedules, Part B-TI, Part B-TTI, and then the verification section.

If any schedules do not apply to you, strike them out and mark 'NA' (Not Applicable).

Use 'NA' against any item that doesn't pertain to your financial situation.

Round off all figures to the nearest rupee, except for total income/loss and tax payable, which should be rounded off to the nearest ten rupees.

Select 'Government' as your employer category if you are a government employee. If you work for a public sector company of the Central/State Government, choose 'PSU.'

If you claim double taxation relief under section 90/90A/91, the ITR-2 Form cannot be used.

Modes of Submission for ITR-2:

There are two main methods for filing ITR-2: offline and online.

Filing ITR-2 Offline:

If you are 80 years of age or older, you have the option to file ITR-2 offline. In this case, submit a physical paper return or use a bar-coded form. You will receive an acknowledgment from the Income Tax Department upon submission.

Filing ITR-2 Online:

For online filing of ITR-2, you can transmit all the necessary information electronically, either with or without a digital signature.

After completing the online filing, verify the return through Return Form ITR-V.

You will receive the acknowledgment on your registered email if you submit ITR-2 electronically with a digital signature.

Why Choose Leagel Edge Advice Care for ITR-2?

Expert Guidance: Our experienced professionals will provide expert guidance throughout the ITR-2 filing process, ensuring accuracy and compliance.

Convenience: We offer a convenient online platform that allows you to file your ITR-2 from the comfort of your home or office. Say goodbye to long queues and paperwork!

Accuracy: Our thorough review process guarantees that your ITR-2 is error-free, minimizing the risk of tax-related issues in the future.

Timely Filing: We understand the importance of filing your taxes on time. With Leagel Edge Advice Care, you can rest assured that your ITR-2 will be filed promptly to avoid penalties.

Contact Leagel Edge Advice Care today, and our team will assist you every step of the way. Enjoy peace of mind knowing that your taxes are in expert hands.