ITR-2 is an Income Tax Return (ITR) form used by individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession. It is meant for taxpayers whose income sources include salary, pension, house property, capital gains, foreign assets, or income from other sources such as interest and dividends. This form is more detailed than ITR-1 and is used by individuals with higher income levels and multiple sources of income.
ITR-2 can be filed by individuals and HUFs who meet the following conditions:
• The total income is above Rs. 50 lakh.
• Income sources include salary, pension, multiple house properties, capital gains, and income from other sources.
• Agricultural income exceeds Rs. 5,000.
• The taxpayer is a resident, non-resident, or Resident but Not Ordinarily Resident (RNOR).
• The taxpayer owns foreign assets or has foreign income.
• The taxpayer is a director in a company.
• The taxpayer has invested in unlisted equity shares.
Individuals cannot file ITR-2 if:
• They have income from business or profession.
• They are eligible to file ITR-1 (Sahaj).
• They want to declare income under the presumptive taxation scheme (ITR-3 or ITR-4 is required).
Before filing ITR-2, the following documents should be kept ready:
• Form 16 (if applicable)
• PAN card
• Aadhaar card
• Salary slips
• Bank account details
• Capital gains statement (if applicable)
• TDS certificates from employers, banks, or other entities
• Investment details for claiming deductions under Section 80C, 80D, 80G, etc.
• Interest certificates from banks, post office, or financial institutions
• Rental income details (if applicable)
• Foreign asset and income details (if applicable)
• Advance tax and self-assessment tax payment details
ITR-2 can be filed online through the Income Tax e-Filing portal. The steps involved are:
1. Visit the Income Tax e-Filing portal.
2. Log in using PAN, password, and captcha.
3. Click on ‘File Income Tax Return’.
4. Select the assessment year and mode of filing.
5. Choose ‘ITR-2’ from the list of available forms.
6. Fill in all the required details related to salary, house property, capital gains, and deductions.
7. Verify the tax payable or refundable amount.
8. Submit the form and verify using Aadhaar OTP, net banking, or physical verification method.
9. Download the acknowledgment for future reference.
The due date for filing ITR-2 depends on the category of the taxpayer:
• For individuals who do not require an audit – July 31st of the assessment year.
• For individuals requiring an audit – October 31st of the assessment year.
Failing to file ITR-2 within the due date may result in penalties:
• A late fee of Rs. 5,000 if filed after the due date but before December 31st.
• A late fee of Rs. 10,000 if filed after December 31st.
• No penalty if total income is below Rs. 5 lakh, but a late fee of Rs. 1,000 applies.
• Additional interest may be charged on unpaid taxes.
• Compliance with tax laws.
• Faster processing of tax refunds.
• Proof of income for loan and credit applications.
• Avoidance of penalties and legal issues.
• Helps in financial planning and investment tracking.
Vakil360 provides expert assistance in filing ITR-2 accurately and efficiently. Our services include:
• Step-by-step guidance for hassle-free filing.
• Expert review to ensure compliance with tax laws.
• Quick and error-free submission.
• Maximum tax savings by applying eligible deductions.
• Timely filing to avoid penalties.
With Vakil360, taxpayers can ensure their ITR-2 filing is done correctly and on time, ensuring compliance with tax regulations. Contact us today for professional tax filing services.
