What is the ITR 2 Form?
The ITR-2 Form is filed by the individuals or HUFs not having income from profit or gains of business or profession and to whom ITR-1 is not applicable. It includes income from capital gains, foreign income or any agricultural income more than Rs 5,000.
Filing tax return using ITR-2:
Individuals and Hindu Undivided Families not having business or professional income can use Form ITR-2. In order for a person to be eligible to file a return with ITR-2 form, they need to have the following types of income:
- Salary Income.
- House property Income
- Capital Gains.
- 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 5,000; and
- Individuals qualifying as Not Ordinarily Resident and Non-Resident during the relevant FY.
ITR filing mode
A taxpayer may choose to fill the Form ITR-2 in either online or offline mode. In the offline mode, one needs to use the JSON utility (available on the tax department’s e-filing portal) to fill in the details before uploading the same on the income tax website to complete the filing process.
In the online mode, ITR-2 Form comes with certain pre-filled information such as personal details of the taxpayer along with details of salary income, dividend income, interest income, capital gains, etc., and the form can be downloaded from either the government’s income-tax e-filing portal or from other tax filing websites.
In the offline mode, prefilled XML can be downloaded from the income-tax website and imported by using JSON utility to make further edits in the form. However, due to glitches in the government’s income tax website, it would be prudent for the tax filer to cross-check the pre-filled information in both the online or offline mode as well.
Documents/papers needed to file ITR:
- Documents pertaining to incomes
- Documents pertaining to specified investments
- Documents pertaining to expenditures
- Documents pertaining to pre-paid taxes.
How can a taxpayer file ITR 2?
A taxpayer can file ITR 2 either offline or online.
- Offline filing procedure
Only taxpayers aged over 80 can file the ITR offline. In order to file an offline form, the taxpayer needs to furnish a return physically in paper or through a bar-coded form. The Income Tax Department will give you an acknowledgment when you submit the return.
- Online filing procedure
You can file ITR 2 online with a digital signature or by transmitting the entire information electronically. Later, you can furnish the verification through the Return Form ITR-V.
If you submit the form electronically by using a digital signature, you will receive the acknowledgment on your email ID. Also, it is possible to download the form manually, sign and post it to the Department’s Central Processing Centre (CPC) office within a period of four months of e-filing of the form. You need to keep in mind that you need not provide any
additional documents with the ITR 2 Form, which means that it is an annexure-less form.
As a diligent taxpayer, you need to calculate your tax liability and file your returns under ITR 2 if you fall into this category before the due date.
Instructions to fill out the ITR 2 Form
You can start filing ITR 2 in the following sequence:
- Part A followed by all the other schedules
- Part B-TI and Part B-TTI.
- Mention N/A against the schedules that are not applicable.
- After filling up the form, verify your return.
Manner of filing the ITR 2 Form
You can fill the form:
- Physically by using the paper form.
- Electronically by using a digital signature, return form ITR-v, or electronic verification code.
- Using a bar-coded return.