ITR-2 is an Income Tax Return form designed for specific categories of taxpayers in India, primarily individuals and Hindu Undivided Families (HUFs) with diverse income sources. This form is specifically used by those who have income from salary, pension, capital gains, house property, and other sources, but not from business or professional profits. Individuals who are directors in companies, have investments in unlisted equity shares, or have foreign assets are also required to file ITR-2.
The filing process involves several key steps, beginning with gathering necessary documentation such as Form 16, bank statements, details of capital gains, and information about investments and loans Taxpayers must register or log in to the Income Tax e-Filing portal, select the appropriate assessment year (currently A.Y. 2024-25), and choose the online filing mode. The ITR-2 form is comprehensive, encompassing sections for personal information, gross total income, deductions, and tax calculations, with specific schedules for foreign assets, capital gains, and other income sources.
Recent updates to the ITR-2 form for Financial Year 2023-24 include modifications to the foreign assets schedule, which now requires reporting of assets owned between January 1 and December 31, 2021. Taxpayers must ensure they link their Aadhaar and PAN, pre-validate their bank account, choose the correct ITR form, and verify their return within specified timelines. The filing can be completed through various platforms like the official Income Tax portal or third-party tax filing websites, with careful attention to accurately filling out all required information.
The ITR2 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 for ITR 2 filing form:
Visit the official Income Tax e-filing website at www.incometax.gov.in. If you already have an account, log in using your User ID (PAN) and password. If you are a new user, you will need to register first using your PAN.
Once logged in, navigate to the "e-File" menu and select "Income Tax Returns." Choose the relevant assessment year for which you are filing (e.g., FY 2023-24 for AY 2024-25) and select ITR-2 from the dropdown menu.
Complete the ITR-2 form by entering all required details, including Personal information (name, address, date of birth),Income details from various sources (salary, house property, capital gains),Deductions under Chapter VI-A (like Section 80C) Ensure that all mandatory fields are filled accurately. The system may pre-fill some details based on your previous filings.
After filling out the form, use the "Validate" button to check for any errors or missing information. Once validated, proceed to submit your return. You can choose to file it online with or without a digital signature. If filing without a digital signature, you will need to verify your return later.
After submission, you must verify your return within 30 days to ensure it is considered valid. You can verify using various methods such as Aadhaar OTP, Electronic Verification Code (EVC), or by sending a signed physical copy of ITR-V to CPC, Bengaluru. Choose the method that is most convenient for you.
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