The ITR-2 is a form used by Indian citizens as well as non-resident Indians to file their tax returns with the Income Tax Department of India. Filing Income Tax in India requires an assessee to fill up and submit different forms depending on the category the assessee falls under. The ITR-2 form is one type of form that is required to be filled during the tax filing process.
ITR-2 Form Eligibility:
ITR-2 forms are used by individuals or Hindu Undivided Families whose total income for the assessment year includes:
- Income from Salary/Pension; or
- Income from House Property; or
- Income from Capital Gains; or
- Income from Other Sources (including Winnings from Lottery and Income from Race Horses)
- Foreign Assets
If the Income Tax Returns are clubbed with a spouse, minor child etc, then their returns can only be filed together if the sources of income are similar to the ones mentioned above. Should there be a variation in earnings in even one category, the Assessee is liable to fill up a separate and relevant Income Tax Returns Form.
Who is not eligible to file the ITR-2 Return?
- Any individual or Hindu Undivided Family with income fully or partially earned from a business or profession
- Individuals who are eligible to fill out the ITR-1 Form
- Individuals who are partners in a Partnership Firm
What are the Components of the ITR-2 Form?
The ITR-2 Form is divided into the following categories:
- Part A: General Information
- Part B-TI: Computation of Total Income
- Part B-TTI: Computation of tax liability on total income
- Schedule S: Details of income from salary
- Schedule HP: Details of income from house property
- Schedule CG:. Computation of income from capital gains.
- Schedule OS: Computation of income from other sources.
- Schedule CYLA: Details of Income after Set off of current year losses
- Schedule BFLA: Details of Income after Set off of Brought Forward Losses of earlier years
- Schedule CFL: Details of Losses to be carried forward to future years .
- Schedule VIA: Deductions under Chapter VI-A (Section)
- Schedule 80G: Details of donations entitled for deduction under section 80G
- Schedule SPI: Income of specified persons (spouse, minor child etc) includible in income of the assessee (income of the minor child, in excess of Rs. 1,500 per child, to be included)
- Schedule SI: Income chargeable to tax at special rates
- Schedule EI: Details of Exempt Income (Income not to be included in Total Income)
- Schedule IT: Statement of payment of advance-tax and tax on self-assessment.
- Schedule TDS1: Details of tax deducted at source on salary.
- Schedule TDS2: Statement of tax deducted at source on income other than salary.
- Schedule FSI: Details of Income from outside India and tax relief
- Schedule TR: Summary of tax relief claimed for taxes paid outside India
- Schedule FA: Details of Foreign Assets and Income from any source outside India
- Schedule 5A: Information regarding apportionment of income between spouses governed by Portuguese Civil Code
Instructions to fill out the ITR-2 Form:
When filling up the ITR-2 Form it is advisable to make note of the following instructions and guidelines:
- Fill out the form as per the following sequence:
- Part A
- All the schedules
- Part B-TI and Part B-TTI
- Any schedules not applicable to the Assessee should be struck out with NA (Not applicable) mentioned
- The Assessee should mention NA against any item not applicable to him or her
- All figures are to be rounded off to the nearest one rupee except figures for total income/loss and tax payable, which are to be rounded off to the nearest multiple of ten.
- Individuals falling under the Employer Category you should choose ‘Government’ if he or she is a Central/State Government employee
- Individuals working in a public sector company of the Central/State Government should choose ‘PSU’
- If the Assessee is claiming double taxation relief under section 90/90A/91, the ITR-2 Form cannot be used
- ITR-2 is an annexure-less form. No documents are required to be attached to the form during submission
Manner of filing the ITR-2 Form:
The ITR-2 Form can be filed with the Income-tax Department in any of the following ways:
- By furnishing the return in a paper form. At the time of submission of the paper returns the Income Tax Department will issue an acknowledgement to the assessee.
- By furnishing the return electronically under digital signature. ITR-2 Forms submitted by assessees electronically under digital signature will receive an acknowledgement to their registered email ID.
- By transmitting the data in the return electronically under electronic verification code
- By transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V
- By furnishing a bar-coded return
It is mandatory to file Income Tax Returns electronically (either through Mode 3 or Mode 4) for the following:
- Assessees earning more than Rs 5 lakhs per annum
- Assessees in possession of any assets outside India (including financial interest in any entity) or signing authority in any account outside India
- Assessees claiming relief under Section 90/90A/91 to whom Schedule FSI and Schedule TR apply
ITR-2 Form for Assessment Year 2015-16:
The ITR-2 Form for the Assessment Year 2015-16 can be downloaded from the official website of the Income Tax Department of India. An assessee can click on the ITR-2 option on the right hand side of the main page, after which he or she will be directed to the Income Tax Return Utility Downloads page.
The ITR 2 Form for individuals and HUFs not having income from Business or Profession can be downloaded either using the Excel Utility or the Java Utility.
- A copy of last year's tax return
- Bank Statement
- TDS certificates
- Savings certificates/Deductions
- Interest statement showing interest paid to you throughout the year.
- Balance Sheet, P&L Account Statement and other Audit Reports wherever applicable.