ITR, or Income Tax Return, is a crucial document in which taxpayers report their Income and applicable taxes to the income tax department. The Income Tax Act of 1961 outlines all the ITR forms and procedures. Among these forms, the ITR2 form is designated for individuals and Hindu Undivided Families who do not generate Income from professional or business activities. Understanding what ITR2 is is crucial for individuals having income from sources such as salary, house property, capital gains, or other sources apart from business or profession.

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What is ITR2?

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, ITR2 form is designated for individuals and Hindu Undivided Families who do not generate Income from professional or business activities. This is what is ITR2 all about briefly.

Eligibility for ITR 2 Form

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:

• 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.

This list precisely answers the question of who can file ITR 2.

Who Shouldn’t Eligible for ITR 2 filing?

• 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 ITR2 Form

After understanding who can file ITR 2, you need to know the structure of the ITR2 form. The ITR2 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 ITR 2 Filing Form

ITR2 Form 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 ITR2 Form

If you are a person who can file ITR 2, you must know the ITR 2 filing process. During ITR 2 filing Form, it’s important to follow these instructions and guidelines:

• 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 ITR2 Form cannot be used.

If you’re wondering, can I file ITR for last 2 years now, you should know that filing is possible with certain conditions.

Modes of Submission for ITR2:

There are two main methods for how to file ITR 2 process: offline and online.

ITR 2 Filing 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.

ITR 2 Filing Online:

For online ITR 2 filing, 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.