What is ITR-2?

Drafting ITR-2 serves as an Income Tax Return document both for individuals and Hindu Undivided Families when they earn no profits from business activities or professional endeavors. People with earnings from salary together with multiple house properties and capital gains and foreign income should use this ITR form.

Who is Eligible to File ITR-2?

Individuals and HUFs can file ITR-2 if they meet the following criteria:

• Income from salary/pension

• Income from more than one house property

• Capital gains income (short-term or long-term)

• Foreign income or foreign assets

• Income exceeding ₹50 lakh

• Agricultural income exceeding ₹5,000

• Income from lottery, racehorses, or other speculative sources

• Directorship in a company or investments in unlisted shares

Who is Not Eligible to File ITR-2?

• Individuals with income from business or profession (they must file ITR-3 or ITR-4)

• Individuals eligible to file ITR-1 (Sahaj)

Structure of ITR-2 Form

The ITR-2 form consists of the following sections:

• Part A: General Information

1. Name, PAN Card, Aadhar Card number, and contact details
2. Filing type (original/revised return)
3. Residential status

• Part B: Income Details

1. Salary/pension income
2. House property income
3. Capital gains
4. Other sources of income (interest, dividends, etc.)

• Part C: Deductions and Taxable Income

1. Deductions under Chapter VI-A (80C, 80D, etc.)
2. Computation of total taxable income

• Part D: Tax Computation and Payment

1. Tax payable/refund details
2. Advance tax and self-assessment tax paid

• Part E: Verification

1. Declaration and signature of the taxpayer

How to File ITR-2?

• Step 1: Gather Required Documents

1. Form 16 (for salaried individuals)
2. Capital gains statement (for sale of property, stocks, etc.)
3. Bank statements for interest/dividend income
4. Investment proofs for deductions (PPF, LIC, ELSS, etc.)
5. Aadhaar and PAN card
6. Foreign asset and income details (if applicable)

• Step 2: You need to access the Income Tax Portal by performing the Login procedure

1. Visit www.incometax.gov.in
2. Login using PAN and password
3. Select e-File > Income Tax Return > Assessment Year

• Step 3: Choose the Correct ITR Form

1. Select ITR-2 from the available forms
2. Choose the filing type (Online or Offline JSON upload)

• Step 4: Fill in the Details

1. Enter income details from Form 16, capital gains, and other sources
2. Claim applicable deductions (Sections 80C, 80D, etc.)
3. Compute total taxable income

• Step 5: Verify and Submit

1. Choose e-verification mode (Aadhaar OTP, Net Banking, or DSC)
2. Submit the return and download ITR-V acknowledgment

Due Date for Filing ITR-2

• The annual income tax return deadline falls on 31st July of the assessment year (but the government can extend this date).

Penalty for Late Filing

• ₹1,000 (if income < ₹5 lakh)

• ₹5,000 (if income > ₹5 lakh)

• Interest under Section 234A for tax due

Conclusion

ITR-2 is ideal for individuals with capital gains, foreign income, multiple house properties, and high income. Filing it accurately ensures compliance and avoids penalties. Always verify details before submission and keep an acknowledgment for records.

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