Description

ITR 2

ITR-2, also known as the Income Tax Return Form 2, is a document used by individuals and Hindu Undivided Families (HUFs) who have income from sources other than business or profession. It is specifically meant for individuals who are not eligible to file ITR-1 but have income from salaries, multiple house properties, capital gains, and other sources excluding income from business or profession. Here’s a detailed overview of ITR-2 focusing on salary income and other income:

ITR 2

1. Basic Information:

The ITR-2 form begins with basic information such as the taxpayer’s name, PAN (Permanent Account Number), address, email, and mobile number. It also requires details of filing status like whether it’s an original or revised return and the applicable assessment year.

2. Income from Salary/Pension:

ITR 2 This section requires the taxpayer to provide details of their income from salary or pension. It includes income from all sources such as salaries received from employers, arrears of salary, pension received from previous employers, etc. Taxpayers need to provide details of allowances, perquisites, and deductions claimed under various sections of the Income Tax Act.

3.Income from Other Sources:

ITR 2 Apart from salary income, taxpayers may have income from other sources such as interest income, rental income, dividends, etc. This section requires the taxpayer to provide details of such income. It includes income earned from savings accounts, fixed deposits, mutual funds, dividends from investments, etc.

4. Income from House Property:

If the taxpayer owns any house property other than self-occupied property, they need to provide details of rental income earned from such property. This includes details of gross rent received, municipal taxes paid, and deductions claimed under Section 24 of the Income Tax Act.

5. Capital Gains:

Taxpayers who have earned capital gains from the sale of assets such as stocks, mutual funds, real estate, etc., need to provide details of such transactions in this section. It includes details of the asset sold, sale consideration, cost of acquisition, and capital gains computed after considering indexation or exemption under various provisions of the Income Tax Act.

6. Tax Payments and Advance Tax:

Taxpayers need to provide details of tax payments made during the year such as tax deducted at source (TDS), advance tax paid, and self-assessment tax paid. This section helps in reconciling the tax liability with the tax payments made.

7. Tax Computation and Liability:

Based on the income details provided, the tax liability is computed in this section. It takes into account deductions, exemptions, and applicable tax rates. Taxpayers need to ensure that their tax computation is accurate to avoid any penalties or interest charges.

8. Verification and Signature:

Finally, the taxpayer needs to sign and verify the ITR-2 form. This signifies that the information provided is true and correct to the best of their knowledge.

Overall, ITR-2 is a comprehensive form designed for individuals and HUFs with income from sources other than business or profession. It allows taxpayers to report their income, claim deductions, and compute their tax liability in a systematic manner, ensuring compliance with the income tax laws of the country.

 

10 (FAQs)  ITR-2:

1.What is ITR-2?

– ITR-2 is an Income Tax Return form prescribed by the Income Tax Department of a country, designed for individuals and Hindu Undivided Families (HUFs) who have income from sources other than business or profession. It is used to report income from salary, multiple house properties, capital gains, and other sources excluding business income.

2. Who Should File ITR-2?

– Individuals and HUFs who have income from sources other than business or profession and are not eligible to file ITR-1 (Sahaj) should file ITR-2. This includes individuals with income from salary, multiple house properties, capital gains, and other sources.

3. Can Salaried Employees File ITR-2?

– Yes, salaried employees can file ITR-2 if they have income from sources other than their salary, such as income from house property, capital gains, or other sources like interest income, dividends, etc.

4.What Information is Required for Filing ITR-2?

– Information required for filing ITR-2 includes details of income from salary, income from house property, capital gains, income from other sources, tax payments made, and details of assets and liabilities.

5. How to Calculate Capital Gains in ITR-2?

– Capital gains are calculated by taking into account the sale proceeds of capital assets, cost of acquisition, cost of improvement, and other expenses related to the transfer of the asset. The resultant gain or loss is then classified as short-term or long-term based on the holding period of the asset.

6. Can I Claim Deductions in ITR-2?

– Yes, individuals can claim deductions under various sections of the Income Tax Act, such as Section 80C for investments in specified instruments like LIC premiums, PPF contributions, etc., and other sections like 80D for health insurance premiums, 80E for education loan interest, etc.

7. What Happens if I Fail to File ITR-2 on Time?

– Failing to file ITR-2 on time may attract penalties and interest charges. It’s essential to file the return within the due date to avoid such consequences.

8.Can I File ITR-2 Electronically?

– Yes, ITR-2 can be filed electronically through the e-filing portal provided by the Income Tax Department. Taxpayers can file their returns online from the comfort of their homes or offices.

9. Is it Mandatory to Attach Documents with ITR-2?

– Taxpayers are not required to attach any documents with the ITR-2 form while filing it electronically. However, they should keep all relevant documents and proofs of income, deductions, and investments for future reference and scrutiny if required.

10.Can I File ITR-2 After the Due Date?

– Yes, you can file ITR-2 after the due date, which is usually around July or August of the assessment year, by paying a late filing fee. However, it’s advisable to file the return within the due date to avoid penalties and interest charges.

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