As the deadline for filing the income tax return (ITR) for FY23-24 approaches, taxpayers need to understand the various forms available for filing. While much is discussed about Form 16 and ITR Form 1, ITR Form 2 is also crucial for many taxpayers. This article will guide you through ITR-2, its relevance, and the steps to file it online.
What is ITR-2 Form?
ITR-2 is designed for individuals who are non-residents or not ordinarily residents, those with incomes exceeding Rs 50 lakh, those with multiple house properties, or those with capital gains. This form is not applicable for individuals earning income from a business or profession.
Who Should File ITR 2?
You should file ITR-2 if you meet any of the following criteria:
- Income from salary or pension
- Income from house property (including more than one house)
- Income from capital gains/loss on sale of investments/property (both short-term and long-term)
- Income from other sources (such as lottery winnings or racehorse bets)
- Agricultural income exceeding Rs 5,000
- Resident not ordinarily resident and non-resident
- Total income from the above sources exceeds Rs 50 lakh
- Directors of companies or individuals with investments in unlisted equity shares
Related Article – 7 Steps to File ITR Without Form 16 For FY 2023-24?
Steps to File ITR-2 Online
To file ITR-2 online, follow these steps:
- Visit the e-filing portal: Go to Income Tax e-Filing Portal and log in with your PAN/Aadhaar and password.
- Navigate to File Income Tax Return: Go to E-File > Income Tax Returns > File Income Tax Return.
- Choose the Assessment Year and Filing Mode: Select the assessment year 2024-25 and the mode of filing as ‘online.’
- Proceed: Click ‘Continue’ to move forward.
- Select Your Status: Choose ‘Individual’ and click ‘Continue.’
- Choose ITR-2: Select ‘ITR-2’ from the dropdown.
- Reason for Filing: Choose the reason for filing the ITR and click ‘Continue.’
- Select Applicable Schedules: Mandatory schedules are pre-selected. Choose additional schedules based on your income sources.
- General Information: Most details are pre-filled. Note that from FY 2023-24, the new tax regime is the default. Opt out if you prefer the old regime.
- Salary Income: Report salary income from all employers if you changed jobs during FY 2023-24. Provide employer details and a detailed salary breakdown.
- Capital Gains: Report capital gains by specifying the type of capital assets sold. Use Schedule 112A for long-term capital gains on listed equity shares, units of equity-oriented mutual funds, or business trusts.
- Income from Other Sources: Report income from dividends, interest, family pensions, gifts, etc. Provide a quarterly breakdown of specific incomes.
- Claim Deductions: Report eligible tax-saving investments with details like date of contribution, amount, and transaction reference number.
- Preview and Submit: Review the filled-in information and submit the ITR. Ensure e-verification within 30 days of filing.
Additional Tips for Filing ITR-2
- Download Form 26AS: Check the details of TDS deducted.
- Ensure Accuracy: Cross-check all pre-filled information.
- Maintain Records: Keep records of all supporting documents like salary slips, investment proofs, and bank statements.
Read Here- ITR Filing Latest Update
FAQs
Q.1 Can you file ITR-2 without Form 16?
Yes, you can file ITR-2 without Form 16 using payslips, Form 26AS, and other relevant documents.
Q.2 Is the new tax regime the default regime?
Yes, from AY 2024-25, the new tax regime is the default. Taxpayers must explicitly opt-out if they prefer the old regime.
Q.3 When is the last date to file an income tax return for FY23-24?
The last date to file an ITR for FY23-24 is July 31, 2024.
Q.4 Can tax deductions be claimed if you opt for the new tax regime?
Limited deductions are available under the new tax regime.
Q.5 Is there a difference between e-filing and e-payment?
Yes, e-filing is electronically filing your ITR, while e-payment is electronically paying your tax.
