A Guide To Filling ITR-2 Form

Written by : Knowledge Centre Team

2024-08-02

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Income tax laws can be intimidating for simple investors and taxpayers anywhere in the world. While taxation in India is no different, the taxpayers have been assigned different forms based on their source of income and status.

ITR-2 is another form assigned to individual and HUF taxpayers. However, unlike ITR-1 Form which you would normally file, ITR-2 takes care of certain specific cases. Let’s find out here:

What is ITR-2 Form?

The taxpayers in India are categorized based on their income. Different ITR forms apply to individuals as per their income. One such Income Tax Return (ITR) form is ITR 2. ITR 2 form is used by individuals and Hindu Undivided Families (HUFs) who are not engaged in any profession or business to file their income tax return.

Who Should Use ITR-2 form?

The form is for those individuals and HUFs who generate income apart from the income from ‘Profits and Gains from Business or Profession’. If you are generating income from one of the below-mentioned sources, you have to file ITR 2.

Income from Salary/Pension
Income generated from house property - it can be from more than one property
Income from Capital Gains/loss on the sale of investments/property - both long and short term
Income from Other Sources - other sources include winning amount from the Lottery, bets on Racehorses and other legal means of gambling
Income above Rs 5000 from agriculture
Foreign Income/Foreign Assets
Resident not ordinarily resident and a Non-resident
Director in a listed and unlisted company

What Are the Different Modes Of Submission?

There are two ways in which you can file ITR 2 - offline and online.

Filing ITR-2 Offline

Only if your age is over 80 you can file the ITR 2 offline. If you are over 80 years, you need to furnish a return physically in paper or through a bar-coded form. Once you submit your form, the Income Tax Department will issue you an acknowledgement.

Filing ITR-2 Online

You can file ITR 2 by transmitting the entire information electronically or with a digital signature. Once done, you can furnish the verification through the Return Form ITR-V. If you submit your ITR 2 form electronically with a digital signature, you will receive the acknowledgement on your registered email id.

You can download the acknowledgement from your email or manually download it from the income tax website. Once downloaded, you will have to sign it and send it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing.

ITR 2 is an annexure less form, which means, you don't need to provide any additional document when you send your ITR 2 form.

Structure Of the ITR-2 Form

ITR 2 Form is divided into two parts. Part A contains general information like Name, Address, DOB, PAN number, Aadhar number, Contact Number and Email Address. Part B comprises the computation of your total income and the tax payable on the total earnings.

Along with Part A and Part B, the form also includes various schedules details of income from salary, income from capital gains, income from house property, and income from other sources, and many others. Below is the detailed bifurcation of the schedules:

Schedule S	Contain details of your income from salary.
Schedule HP	Contain details of your income from House Property.
Schedule CG	This schedule computes your income under Capital gains – long term and short term.
Schedule OS	Calculates your income from other sources like gifts, saving bank interest, dividends from co-operative banks, etc.
Schedule CYLA	This schedule contains information about your losses. If you have incurred any losses like house property loss or capital loss in the current year, you can include those in this schedule.
Schedule BFLA	This schedule will reflect the income that remained after the set-off of losses from the previous year/s’.
Schedule CFL	If you want to carry forward any of your losses to the next financial year, you can use this schedule.
Schedule VIA	Contains your tax-saving deductions. The first part, Part B contains deduction in respect of certain payments. These include payment under 80C (Life insurance, PPF, PF, NSC,), 80CCC (Investment in pension funds), 80E (Interest payment of higher education loan), 80CCG, 80G (Donation made to various funds and charitable institutions.), etc. The second part, Part C, CA and D has deduction in respect of certain incomes/other deductions.
Schedule 80G/ 80GG	It captures the general donations and donations for scientific research or rural development which are entitled to deduction under section 80G and Section 80GG respectively.
Schedule AMT	This schedule computes Alternate Minimum Tax payable under section 115JC.
Schedule AMTC	This schedule does the computation of tax credit under section 115JD.
Schedule SPI	This part contains income arising from your spouse, minor child or son’s wife if their income needs to be included in your income. In the form, you will have to give the name of the person and your relationship with him or her.
Schedule SI	As you know, your income is taxed as per the tax slab. In some special cases, income is chargeable to tax at special rates. Such income will come under this schedule.
Schedule EI	Details of Exempt Income.
Schedule PTI	This contains your income from business trust or investment fund.
Schedule FSI	This section contains your income outside India.
Schedule TR	You need to fill this schedule if you have paid taxes outside India.
Schedule FA	If you hold any Foreign Assets and income from any source outside India, you need to provide those details in this schedule.
Schedule 5A	This schedule is for the Portuguese Civil Code. If you come under this code, you need to provide the PAN of your spouse. As per this code, 50% of your income and TDS thereon will be allocated in the return of your spouse.

Part B-TI – Computation of Total income

Gross Total Income is the aggregate of all your income sources like salary, house property and other sources. The total taxes saving deductions are deducted from your Gross Total Income to compute Total Income.

Part B-TTI – Computation of Tax Liability

Based on your total income, your tax liability is calculated.

Once you have filled all the information, there will be verification at the end ensuring that the details given by you are factually correct and self-attested.

A Guide To Filling ITR-1 Form

Presumptive Income Tax Filing for Business and Individuals

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