All You Need to Know About ITR-2

ITR-2 is for individuals and Hindu Undivided Families (HUFs) who cannot use Form ITR-1. It is also important to know the different tax slabs for different category of taxpayers as it differs by age and income.There are also 18 tables under ITR-2.
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Individuals and HUFs who aren’t eligible for ITR-1 (Sahaj) can use Form ITR-2 and it is applicable for AY 2018-19 and FY 2017-18. Those filing ITR-2 should also have no income under “Profits or gains of business or profession”.

How to File ITR-2

The following are the ways through which individuals and HUFs can file ITR-2 with the Income Tax Department:

  • By submitting the returns online using Digital Signature Certificate.
  • By transferring the information in the return online using Electronic Verification Code.
  • By transferring the information in the return online and then furnishing the verification in Return Form ITR-V.

The taxes collected or deducted or paid will have to match their Form 26AS.

How to Fill out the Acknowledgment

In case you file your ITR-2 by transferring the information in the return online and then furnishing the verification, the acknowledgment must be duly signed in ITR-V. Form ITR-V must be printed twice, and one of them must be duly signed and sent to Post Bag No.1, Electronic City Office, Bengaluru – 560500, and the other can be kept by the taxpayer for his/her record.

Filing Status and the Different Columns

‘Filing Status’ – the heading in the return form as well as the relevant box must be checked with regard to the section under which you are filing the return.

Manner of Return Filing Check Box Number
Voluntarily on or before the due date under Section 139(1) 1
Voluntary after the due date under Section 139(4) 2
Revised return under Section 139(5) 3
Modified return under Section 92CD 4
Under Section 119(2)(b) on an application to be made separately before the Income-tax authority 5
In response to notice under Section 139(9) 6
In response to notice under Section 142(1) 7
In response to notice under Section 148 8
In response to notice under Section 153A/153C 9

If there is a defective or revised or modified return, the original receipt number as well as the date on which the original return was filed will have to be entered. Failure to fill this field could see the Income Tax Department decline your revised return. In case the filing of return is done in response to the department’s notice under Section 139(9), or Section 142(1), or Section 148, or Section 153(A), or Section 153C of the Income Tax Act, the date on which you received the notice will have to be mentioned. In case of modified returns under Section 92CD of the Income Tax Act, the date of advance pricing agreement will have to be mentioned.

Tax Slabs for the Filing of Income Tax Returns

All individuals and Hindu Undivided Families who earn more than the prescribed limit will have to file their taxes with the Income Tax Department. The following are the minimum taxable amounts applicable to individuals and Hindu Undivided Families:

Category of Taxpayers Amount
Individuals who are under 60 years of age Rs.2.5 lakh
Resident individuals who are above 60 years of age but under 80 years of age Rs.3 lakh
Resident individuals who are over the age of 80 years Rs.5 lakh

Income Tax Slabs for Taxpayers

The following is the amount of tax chargeable to individuals who are less than 60 years of age:

Income Tax
Less than Rs.2.5 lakh Nil
Rs.2.5 lakh to Rs.5 lakh 5% of income over and above Rs.2.5 lakh
Rs.5 lakh to Rs.10 lakh Rs.12,500 + 20% of the income over and above Rs.5 lakh
More than Rs.10 lakh Rs.1,12,500 + 30% of the income over and above Rs.10 lakh

The following is the amount of tax chargeable to individuals who are over 60 years of age but under 80 years of age:

Income Tax
Less than Rs.3 lakh Nil
Rs.3 lakh to Rs.5 lakh 5% of the income over and above Rs.3 lakh
Rs.5 lakh to Rs.10 lakh Rs.10,000 + 20% of the income over and above Rs.5 lakh
More than Rs.10 lakh Rs.1.1 lakh + 30% of the income over and above Rs.10 lakh

The following is the amount of tax chargeable to individuals who are above 80 years of age:

Income Tax
Less than Rs.5 lakh Nil
Rs.5 lakh to Rs.10 lakh 20% of the income over and above Rs.5 lakh
More than Rs.10 lakh Rs.1 lakh + 30% of the income over and above Rs.10 lakh

Schedules of ITR-2

ITR-2 has 18 work tables in total, and these tables are also called ‘Schedules’. The tables are split into Part-A and Part-B. Part-A primarily asks for details regarding your identity along with your filing status. Part-B requires details regarding the overall income you have earned along with tax calculation with regard to the amount chargeable to tax. Following Part-B, you will have to go through the statutory verification. There is some information that must be filled in page 3 in case a Tax Return Preparer has prepared the return.

On the third and fourth page, you will have to enter details related to tax payments through self-assessment tax and advance tax, TDS from salary, TDS on income apart from salary, and TCS. The following are the 18 schedules:

  1. Schedule S: This schedule is regarding the calculation of income under ‘Income from Salary’.
  2. Schedule CG: This schedule is regarding the calculation of income under ‘Income from Capital Gains’.
  3. Schedule HP: This schedule is regarding the calculation of income under ‘Income from House Property’.
  4. Schedule OS: This schedule is regarding the calculation of income under ‘Income from Other Sources’.
  5. Schedule BFLA: This schedule is regarding the statement of income following the set off of unabsorbed losses brought forward from previous years.
  6. Schedule CYLA: This schedule is regarding the statement of income following the set off of the present year’s losses.
  7. Schedule CFL: This schedule is regarding the statement of losses that must be carried forward to subsequent years.
  8. Schedule 80G: This schedule is regarding the statement of donations that are eligible for deductions under Section 80G of the Income Tax Act.
  9. Schedule VI-A: This schedule is regarding the statement of deductions under Chapter VI-A of the Income Tax Act.
  10. Schedule SI: This schedule is regarding the statement of income that will be taxable at special rates.
  11. Schedule SPI: This schedule is regarding the statement of income that arises to the taxpayer’s minor child or spouse or any other individual or AOP.
  12. Schedule EI: This schedule is regarding the statement of income that is excluded in the overall income (exempt income).
  13. Schedule FSI: This schedule is regarding the statement of income that arises or accrues outside India.
  14. Schedule PTI: This schedule is regarding the statement of income from Investment Fund or Business Trust under Section 115UB and Section 115UA of the Income Tax Act.
  15. Schedule TR: This schedule is regarding the statement of tax relief that the taxpayer has claimed under Section 91, Section 90A, or Section 90 of the Income Tax Act.
  16. Schedule FA: This schedule is regarding the statement of the taxpayer’s Foreign Assets and Income.
  17. Schedule AL: This schedule is regarding the statement of the taxpayer’s Asset and Liability at the year’s end. It is compulsory if the overall income of the taxpayer is in excess of Rs.50 lakh.
  18. Schedule 5A: This schedule is regarding the statement of income distribution between spouses who are governed by the Portuguese Civil Code.

A Guide to Entering Details in the Schedules

Here are some general rules to observe when filling out information in the schedules:

  • Follow the procedure to fill up details as indicated.
  • In case of inapplicable items, enter ‘N/A’.
  • In case there are any nil figures, write ‘Nil’.
  • Round off every number to the nearest rupee.

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