ITR-2

ITR-2 is an income tax return form prescribed by the Income Tax Department of India for individuals and Hindu Undivided Families (HUFs) who do not qualify to file their tax returns using ITR-1 (Sahaj) and have income from multiple sources. It is suitable for individuals with income from salary, multiple house properties, capital gains, and other sources. Here’s an overview of ITR-2:

Eligibility:

• Individuals and HUFs who are not eligible to file ITR-1 can use ITR-2 to file their income tax returns.
• It is applicable to individuals and HUFs who have income from sources other than business or profession.

Key Features:

1. Comprehensive Form: ITR-2 is more comprehensive compared to ITR-1 and is suitable for individuals with income from various sources such as salary, house property, capital gains, and other sources.
2. Income Details: The form requires detailed information about income from salary, income from house property, income from capital gains (short-term and long-term), income from other sources, and income from foreign assets or interests.
3. Deductions: Taxpayers can claim deductions under various sections of the Income Tax Act, such as Section 80C (investment in specified instruments), Section 80D (health insurance premium), Section 80G (donations), etc.
4. Schedule EI: Individuals with income from exempt income exceeding ₹5,000 need to provide details of such income in Schedule EI.
5. Foreign Assets/Income: Taxpayers who have income from foreign assets or interests are required to provide details of such assets/income in the relevant schedules.
6. Bank Account Details: Taxpayers need to provide details of their bank accounts, including the IFSC code and bank account number, for receiving any refund due.
7. Verification: After filling out the form, taxpayers need to verify it either electronically (using Aadhaar OTP, Net Banking, etc.) or by sending a signed physical copy to the Income Tax Department.

Due Date: The due date for filing ITR-2 for most individuals is usually July 31st of the assessment year. However, it’s advisable to check the latest due date as announced by the Income Tax Department for each financial year.

Filing income tax returns accurately and timely is essential to avoid penalties and comply with tax regulations. Taxpayers should ensure that all relevant income details, deductions, and other information are correctly reported in the ITR-2 form before submission. Additionally, keeping records of supporting documents and maintaining tax compliance throughout the year can facilitate a smooth filing process.