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ITR-2 form is for individuals or HUFs who have income source other than business or profession. Check how to read the complete form in this guide of H&R Block.

What is ITR 2 Form and Steps to File ITR-2 Online

Last Update Date : June 25, 2018

When filing income tax returns, each category of persons, has a different form that must be used.  The government has issued ITR 2 form for individuals and HUF’s who derive income from other sources, including their salary or pension.  The previously used ITR 2A has been removed and now only ITR 2 form only exists, to be used by individuals meeting the requirements outlined in this guide.

Who can file ITR2?

Individuals and HUFs (Hindu Undivided Families) can file ITR 2. This return form will be applicable to you if you receive income from:

  • Salary/pension
  • House property from one or more
  • Capital Gains/Loss on sale of investments/property (both short-term and long-term)
  • Other sources (lottery, gambling and other legal channels)
  • Being a partner in the firm (earlier there was separate ITR form 3 for this, the ITD has discontinued that form and merged into ITR 2)
  • Foreign Assets/Foreign Income
  • Dividend income exceeding Rs 10 lakhs taxable u/s 115BBDA
  • Unexplained credit or unexplained investment taxable at 60% u/s 68, 69, 69A, etc.
  • Share of profit of partner from a partnership firm
  • Agricultural income exceeding Rs 5,000

Who cannot File ITR 2?

You cannot file this form if your income includes the following:

  • Income from Business or Profession under any proprietorship
  • Individuals, who are eligible to fill out the ITR-1 Form

[ Read: Which ITR to File for Tax Filing ]

How to File ITR 2?

how to fill itr 2 online

 

You can file form ITR-2 form either offline or online. Click the above image to download ITR 2 Form for financial year 2016/17 and click here for FY 2015/16.

NOTE: For filing of FY 2015/16, you can refer to the special rates of tax to be filled out in Schedule SI here.

 

File ITR-2 using Offline Method

  • You can furnish the return in a paper form. At the time of submission of the paper return, the Income Tax Department will issue you an acknowledgement. You can also furnish a bar-coded return.

Who can file ITR Form 2 offline or physically?

  • People, who are over 80 years of age or individual and HUF with total income less than Rs.5 lakhs and no claim of refund in the return of income, have the option to file tax return in paper form. You have to file only one copy of the return form.

ITR 2 Online Filing Procedure

You can file online ITR Form 2 with the Income Tax Department in the below mentioned ways:

  • By furnishing the return electronically under digital signature, after submitting the form, you will receive an acknowledgement to your registered email ID.
  • By transmitting the data in the return electronically and authenticating it through electronic verification code.
  • By transmitting the data in the return electronically and after that submitting the verification of the return in Return Form ITR-V.

What is the Structure of ITR 2 Form?

Form ITR-2 has the following components:

  • Part A: General information such as identification, etc.
  • Part B: Outline of the total income and tax computation in respect of income chargeable to tax.
    A space for a statutory verification, which is compulsory if the return, is furnished in paper form.
  • On page 3: Details to be filled if the return has been prepared by a Tax Return Preparer
  • On page 3 and 4: Statement of tax payments on account of advance tax and self-assessment tax, tax deducted at source from salary, tax deducted at source on income other than salary and tax collected at source as per form 27D issued by the collector(s) are to be filled.
  • This is followed by the below schedules:
    Schedule S: head salaries income computation
    Schedule HP: income from house property
    Schedule IF: partnership firm information in which you are a partner
    Schedule BP: Calculation of income under ‘profit and gains from business or profession’ (income of salary, interest, etc. from firms where you are a partner)
    Schedule CG: Capital Gains income
    Schedule OS: Income from other sources computation
    Schedule CYLA: income after set off of current year’s losses
    Schedule BFLA: income after set off of unabsorbed loss brought forward from previous years
    Schedule CFL: losses to be carried forward to future years
    Schedule VI-A: deductions (from total income) under Chapter VI-A
    Schedule 80G: donations entitled for deduction under section 80G
    Schedule SPI: income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of the assessee in Schedules-HP, BP, CG and OS
    Schedule SI: income which is chargeable to special tax rates
    Schedule EI: exempt income
    Schedule PTI: income from Business Trust or Investment Fund as per section 115UA, 115UB
    Schedule FSI: income accruing or arising outside India
    Schedule TR: tax relief claimed u/s 90 or section 90A or section 91
    Schedule FA: Foreign Assets and Income
    Schedule 5A: Statement of apportionment of income between spouses governed by Portuguese Civil Code
    Schedule AL: Asset and Liability at the end of the year (mandatory in case, your total income exceeds Rs 50 lakhs)

How do you Send your ITR-V to the CPC Office?

If you e-file your return, then you will receive the copy of acknowledgement (ITR-V) on your e-mail, you can take print out from there or you can download the acknowledgement copy from the Income Tax Department website and take a print out of it, sign in the space provided and send it to CPC office, Bengaluru. You can also e-verify your ITR-V now by using any of the methods mentioned here.

[ Read: How to Send ITR-V Form to CPC Banglore ]

Changes Made in Form ITR-2 for AY 2018-19

Changes in ITR 2 Details
More details of salary and house property income Old ITR form required the taxpayers to report only the taxable amount but the new ITR forms require you to report detailed calculation of income from salary and house property.
Penalty for late filing of ITR A new field has been added where the late filers need to provide the details of late filing fees paid.
Capital gains as a result of transfer of unquoted shares A new filed has been added for the taxpayers to provide information on unquoted shares in accordance with the amendment in the section 50CA of the Finance Act, 2017.
Reporting gifts A field has been added to report the amount taxable as gift.
Credit of refund to foreign bank account A field has been added where an NRI taxpayer can provide the details of a foreign bank account in which he wants the credit of the tax refund he wants to claim.
Reporting disallowance of expenses A new field has been added to report disallowance of expenses in case of TDS default.
Claiming credit of TDS deducted in the name of another person A new field has been added to facilitate the claim for TDS credit where the TDS was deducted in the name of another person or from a common pool or other similar situations.
Change of applicability for a partner in a firm Partners cannot use ITR 2 – for the Assessment Year 2018-19, an individual or an HUF, who is a partner in a firm, shall be required to file his ITR in Form ITR 3 only.
Claiming relief under DTAA The form now asks the taxpayer claiming relief as per DTAA to report more details like rate as per treaty, rate as per I-T Act and applicable rate etc.
Claiming exemption on capital gains The taxpayers now need to provide more details in the form if they are claiming capital gains exemption.
Reporting of remission or cessation of trading liability New forms require separate reporting of remission or cessation of trading liability in case of income from other sources.
Reporting GST payments and refunds New columns have been introduced in the ITR forms to report the details of GST paid and refunded.
Removal of gender field Taxpayers now do not need to mention their gender in the form.

All these changes have been made by the tax department in the ITR form are aimed at making the assessment procedure online. Therefore, we can see that the department is seeking more and more information from the taxpayers to facilitate e-assessment.

Changes Made in Form ITR-2 for AY 2017-18

Change Details
Assets and liablities of Individuals/HUF whose income exceeds Rs 50 lakhs in schedule ‘AL’

 

You are required to declare the cost of immovable property (address too), jeweler, bullion, vehicles, shares, bank and cash balance, etc. Also, description of movable assets.
Income derived as a partner in a Firm  You are required to disclose income earned from the firm in which you are a partner along with the details of interest held in the assets of a Partnership firm or Association of persons as a partner or member. Also name, address, PAN of the firm or AOP.
Aadhaar Number

 

As per section 139AA, taxpayers must quote aadhaar number or aadhaar enrolment number while filing ITR.
Other income and in dividend income exceeding Rs 10 lakhs Under ‘schedule OS,’ you are required to declare unexplained credit or investment and dividend received from domestic companies exceeding Rs 10 lakh.
Amount of cash deposited during demonetisation

 

If you have deposited Rs 2 Lakh or more then, you need to report cash deposited by you in all the bank accounts during the period from 9th November 2016 to 30th December 2016.

Frequently Asked Questions about ITR-2 Form

How to fill short term capital gain in ITR 2?

Under the schedule CG you can mention your Capital gains income. Also under schedule CFL, you can carry forward your losses.

How to calculate income from house property?

Gross Annual Value – Municipal Taxes = Net Annual Value – (Deductions u/s 24 + Standard 30% deduction + interest paid on loan) = Income from house property.

What is housing loan interest exemption limit that can be claimed as deduction?

If the property is self-occupied then the maximum deduction allowed under the head HP is restricted to Rs. 2 lakh but for a rented or deemed rented property there is no limit for tax deduction. But From A.Y. 2018-19 the maximum loss under the head HP that can be set-off against other head of income is also restricted to Rs. 2 lakh and balance can be carried forward for next 8 years.

Save yourself the stress of understanding the various changes to tax laws and let the experts at H&R Block India file your taxes with accuracy and confidentiality.

e-File your tax returns with ease and convenience with H&R Block
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