Individuals/ HUFs who do not have income from business/ profession during a financial year can file ITR-2.
Who can file ITR-2:-
Individuals/HUFs who are having following sources of income are eligible to file the ITR-2 form-
- Income from salary,
- Income from house property,
- Income from other sources like interest from savings A/c., interest from fixed deposits, casual incomes like a lottery, card games, income from racehorse etc.
- Income from capital gains from the sale of shares, property, etc.
- Foreign source income,
- Having foreign assets such as shares, property, etc. outside India.
Who cannot file ITR-2:-
Taxpayers having the following incomes are not eligible to file the ITR-2 form-
- Income from business/ profession,
- A taxpayer who is a partner in a partnership firm.
Checklist of documents required to file ITR-2
Following documents are required to fill-up ITR-2:-
- If you have salary income, you will need Form 16 issued by your employer to enter salary details.
- If you have earned interest on Fixed deposits or saving bank A/c and TDS has been deducted on the same, you will need TDS certificates i.e. Form 16As issued by deductors to enter interest details.
- You will need Form 26AS to verify TDS on salary as well as TDS other than salary. Form 26AS could be downloaded from incometaxindiaefiling.gov.in. Click here to know the steps to download Form 26AS.
- If you are living in rented premises, then you will need rent paid receipts for calculation of HRA (in case you forgot to submit the same to your employer within time).
- If you have any capital gain transaction in shares, you will need a summary or profit/loss statement of capital gain transactions of shares or securities during a year, if any for computation of capital gain.
- In case you have sold out any property, you will need a sale & purchase deed or property for computation of capital gain.
- You will need your bank passbook, fixed deposit receipts (FDRs) to calculate the amount of interest income.
- If you have received rent from your rented house property, then you will need rental receipts to calculate rental income.
- In case you want to claim any loss incurred during the current year, then you will need a document exhibiting the loss.
- In case you wish to claim the previous year's loss, you will need a copy of ITR-V pertaining to the previous year disclosing said loss.
- You will also need documents or proof for claiming tax-saving deductions U/s. 80C, 80D, 80G, 80GG such as life & health insurance receipts, donation receipts, rent receipts, receipts for tuition fees etc, if the same were not considered in your Form 16.
myITreturn automatically selects the appropriate ITR form for you
Contents of ITR-2
ITR-2 form is divided into the following sections. The taxpayer needs to fill out the applicable sections.
Taxpayers need to provide personal details like PAN (Permanent Account Number), Name, Aadhar number, Address, Gender, Date of birth, Contact details, etc.
The aggregate of all incomes like salary, house property and other sources is treated as "Gross Total Income". Details related to incomes are required to be filled in the respective income schedules. Thereafter total tax-saving deductions are deducted from Gross Total Income to compute Total Income.
Taxpayers need to enter income and tax-saving deduction details.
Here, tax liability will be computed as per income and taxpayers can claim taxes paid by him viz. TDS, advance tax, self-assessment tax, etc.
Tax status is referred as Nil tax, tax payable or tax refundable.
The taxpayer needs to sign the return with a description that the information furnished by him is correct.
In the end, the taxpayer is required to fill up the schedules such as Salary details, house property details, other sources details, taxes paid details, tax-saving deduction details, losses details, details of exempt incomes, incomes of a specified person, etc.
ITR-2 comes up with 25 schedules.
Refer below to know what is to be filled in a particular schedule-
- Schedule IT- Details of advance & self-assessment tax paid by you pertaining to the current financial year.
- Schedule TDS/ TCS-
- Details TDS from salary as mentioned in Form 16 issued by the employer.
- Details of TDS other than salary such as TDS on interest from Fixed deposits as per Form 16A issued by tax deductors.
- Details of TCS (tax collected at source) as per Form 27D issued by tax collectors.
- Schedule S- Details of salary, allowances, perquisites, etc. as per your Form 16.
- Schedule HP-
- Self-occupied property: Provide details of property and interest paid on housing loan, if any.
- Let-out property: Provide details of the property such as an address, rent received during the year, municipal taxes paid and interest paid on housing loan, if any.
- Deemed-let out property: Provide details of the property such as an address, notional rent of similar property in that area, municipal taxes paid and interest paid on housing loan, if any.
- Schedule CG-
- Shares & Securities: Provide acquisition and sale details.
- Property: Provide acquisition and sale details. Also, details of any improvement made to the property. And details of the purchase of any other capital asset to claim exemption.
- Schedule 112A & Schedule 115AD(1)(b)(iii)‐Proviso- Enter the scrip wise/unit wise/consolidated detail of the sale of equity shares of a company, units of an equity‐oriented fund, or a unit of a business trust on which STT is paid under section 112A. This schedule is applicable for both residents &Non‐residents
- Schedule OS- Provide details of other incomes received by you during the financial year such as FDR interest, saving bank interest, gifts, dividends from cooperative banks, casual incomes such as lottery winnings, etc.
You can claim expenses too if you have incurred them to earn such income.
- Schedule CYLA- If you have incurred any loss during the financial year, you need to provide details of such loss like a house property loss or a capital loss.
- Schedule BFLA- This schedule will show you the income remained after the set-off of losses pertaining to the previous year/s'.
All the figures are auto-generated. No manual entry is required in this schedule
- Schedule CFL- If you wish to carry forward any loss to the next financial year, you need to enter details of such loss here.
- Schedule VI-A- Details of tax-saving deductions are to be entered here.
These deductions are given under various sections of the Income-tax Act.
Some of the frequently used tax-saving deductions are as follows-
- Sec. 80C- Life insurance, PPF, PF, NSC, tuition fees, specified mutual funds, etc.
- Sec. 80CCC & CCD- Investment in pension funds and schemes of Central Government.
- Sec. 80D- Health insurance & preventive medical check-up.
- Sec. 80E- Interest payment of higher education loan.
- Sec. 80G- Donations made to various funds and charitable institutions.
- Sec. 80TTA- Savings bank & post office A/c. interest.
- Schedule 80G- If you have contributed to any charitable trust or fund, you need to enter details here. Enter the name of the trust, full address, PAN of trust and amount of donation.
This schedule is bifurcated into 3 sections as-
- 100% deduction without qualifying limit- If the donation is made to specified funds of Government like Prime Minister National Relief Fund, Swatch Bharat Fund etc., then enter details here.
- 50% deduction with qualifying limit- If the donation is made to any registered charitable trusts such as Tirupati Balaji trust, any registered trust working for poor people, etc.
- 100% deduction subject to qualifying limit- If the donation is made to some institutions of Government like Rajiv Gandhi memorial trust, Indira Gandhi memorial trust, etc., then enter details here.
- Schedule 80GGA - Furnish details of donations made during the year to research
association, university, college or other institution for scientific research or any programme of
rural development etc.
- Schedule 80D - Furnish details regarding deduction in respect of health insurance premia
- Schedule AMT - (This schedule will not be applicable if new tax regime u/s 115BAC is opted)– Fill in the details of computation of Alternate Minimum Tax (AMT) payable under section 115JC (special provisions for payment of tax by certain persons other than a company).
- Schedule AMTC - Credit for AMT paid in the assessment year 2013‐14 and subsequent assessment years, in excess of normal tax liability, is allowed to be set off against the normal tax liability of the current assessment year. However, the amount of credit is restricted to the extent of normal tax
liability for the current assessment year exceeding the AMT liability for the current assessment
- Schedule SPI- If the income of your spouse, minor son/ daughter, etc. are included in your income, then you need to mention details here. These provisions are known as "Clubbing of income".
- Schedule SI- Generally incomes are taxed as per slab rates. However, some incomes given in Income Tax Act are taxable at a special rate.
E.g. Short term capital gain on listed shares is taxed at 15% will be mentioned here.
- Schedule EI- Enter incomes that are not taxable i.e. exempt.
Exempt incomes include interest, agricultural income, etc.
- Schedule PTI- If you have invested in a business trust or investment fund, income received from such trust or fund is to be entered here along with TDS, if any.
- Schedule FSI- If you have earned any income from a foreign source, then you need to enter details of the same here.
Following details are required-
- Country name.
- Taxpayer Identification number of that country (similar to PAN in India).
- Income earned in that country like salary, capital gains, etc.
- Taxes paid or deducted, if any in that country to earn such income.
- Tax payable in India if foreign income is treated as Indian income.
- The amount of relief will be auto-calculated as lower tax paid in foreign countries and tax paid in India.
- Schedule TR- This schedule is auto-calculated on the basis of data entered in the foreign income schedule. You just need to mention the section for claiming relief as Sec. 90/90A/91 of Income Tax Act.
- Schedule 5A- This schedule is for the Portuguese Civil Code. If you are governed under this code, then you need to mention the PAN of your spouse. As per code, 50% of your income and TDS thereon will be apportioned in the return of your spouse.
- Schedule FA- If you are having any foreign asset or any foreign income, this schedule will be applicable to you.
However, in the case of Non-residents, this schedule is optional.
This schedule will be applicable to you if you are having-
- Foreign bank A/c.- Enter details like country, Bank name, A/c. holder's name, ownership status, peak balance during F.Y., etc.
- Financial interest in a foreign entity- Enter details like country, Entity name, nature of interest and investment amount, etc.
- Immovable property outside India- Enter details like country, date of purchase, ownership status, investment amount, income earned from property, etc.
- Any capital asset like shares, etc. outside India- Enter details like country, date of purchase, ownership status, investment amount, etc.
- Foreign A/c. for which you are having signing authority- Enter details like country, Name of institution, Name of A/c. holder, A/c. No., Peak balance during F.Y., etc.
- Foreign trust in which you are trustee- Enter details like country, Name of trust, names of other trustees, names and address of settlers, etc.
- Foreign source income (not covered above)- Enter details like country, source of such income, amount of income, etc.
- Schedule AL - In case your total income exceeds Rs. 50 lakh, it is mandatory to disclose the details of movable and immovable assets etc. in this Schedule along with liabilities incurred in relation to
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The above is a simple ITR-2 Guide. It will help you understand the need for the form and how to fill the necessary details. One of the first steps towards a hassle-free tax filing season is to understand the need for all the documents and be ready with them before time.
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