The Complete Guide: How to File ITR 2 Form

Jun 25, 2018 | 7 months ago | Read Time: 3 minutes | By iKnowledge Team

Income Tax ITR 2 Form is a form that must be filled with precision. Here is a detailed method on who the form is for and how to seamlessly fill it.

The Income Tax Form ITR 2 is a type of Income Tax Return form for individuals and HUFS (Hindu Undivided Family), who have no income from proprietorship business or occupation. The last date for filling the form is 31st July 2018 for financial year 2017-2018.

Who is eligible to File Income Tax ITR 2 Form?

Individuals or Hindu Undivided Family (HUF) are applicable for ITR 2 if their total income assessment year comprises of the following-

  • You are eligible to file for the ITR 2 Form if you have an income from a salary or pension.
  • Any income from single or multiple house property, is eligible for this income tax return type.
  • Income from capital gains (short term and long term) is eligible for the ITR 2 Form.
  • Business or profession-initiated individuals can file the ITR 2 Form if they have an income under a partnership firm (where the individual/ HUF is a partner)
  • Income from other aspects like bets on horseraces, lottery winnings and any legal methods of betting. .
  • Foreign assets are eligible for the ITR 2 Form

Who cannot File the Income Tax ITR 2?

  • Individual or HUFs with income from proprietorship business
  • Any person who hasn’t filed the ITR 1 form.

How is the Income Tax ITR 2 Form structured?

There are two divisions and 19 schedules to The Income Tax ITR 2 Form.  

  • In the Part A section of the form, you need to fill in all the general information
  • The Part B-TI consists of details regarding the calculation of total income
  • The Part B-TTI section of the form consists of calculation of tax liability on total income
  • In the Schedule IT you need to mention details of advance tax and self-assessment tax payments
  • The Schedule TDS1 of the form requires details of tax deducted at source and tax collected at source.
  • Schedule TDSS2: This includes TDS details of income apart from salary sources [regarding Form 16A, issued to file Income tax]
  • Other Supplementary Schedules like TDS1, TDS2 and IT

How to File Income Tax ITR 2 Form?

If you earn Rs. 5 Lakhs or more, you can now mandatorily file your Income Tax Returns via online mode. Post submission of the return, the Income Tax Department provides an acknowledgement or a response to the taxpayer (you) in Form ITR V.

Procedure to Fill the ITR 2 Form

It is compulsory to file the ITR 2 form electronically for the following assesses:

  • If you earn above Rs. 5 Lakhs per annum
  • Contain any signed authority in any account outside India or assets outside India.
  • Claim relief under Section 90/90A/91 to whom schedule FSI and schedule TR is applicable.

Note These Changes That are Made in Income Tax ITR 2 Form (AY 2017-2018)

1. Statement of Value of Assets and Liabilities

Along with mentioning the worth of assets and liabilities and the value of immovable property and assets, in new ITR forms taxpayers are to provide a description of all the movable assets

2. Income as a Partner in a Firm or Association of Persons

The ITR forms have now introduced a new field for disclosure of interest held in a Partnership firm or Association of persons as member or partner.. These partners/members are required to mention the name, address, PAN of the Firm or AOP.

3. Adhaar Number

It is now essential to mention Aadhaar Number in the Income Tax Return. In case you do not hold an Aadhaar Number nonetheless have applied for an Aadhaar card, the enrolment ID of Aadhaar is then application can be mentioned in the ITR form.

4. Unexplained Income and Dividend Income

When you file this form type, you are required to mention any unexplained credit or investment received from domestic companies above Rs 10 Lakhs. If you fall into this category of Schedule ‘OS’, you cannot choose ITR

5. Disclosure of Cash Deposits During Demonetisation

This section has been mandated in all ITR Forms during the demonetization period to report on cash deposited of Rs. 2 Lakhs by the taxpayer in their bank accounts (November 9, 2016- December 30, 2016).

Advt. no.: IA/Jun 2018/4133


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