The income tax is proclaimed by the Government of India over the people who have a decent amount of income or have the local authority, association of person, body of the individual, a firm or company, etc. Each of these entities is abided by the rules to pay its taxes. Mostly, the amount of the tax is fixed upon the global status of income and the residential status. For every financial year, taxpayers must fulfil their tax returns. In order to file the tax return, an individual needs to file the income tax return form. This form is basically filled with the correct information and submitted to the income tax department so that the smooth and proper transaction of the tax payment can be done during the year to avoid any consequences. ITR 2 Form is one of the categories of the tax return form.
Did you know?
In ITR 2, the following major changes have been made: Disclosures should be made by the taxpayer about (a) the amount of cash deposited in current accounts with a bank above Rs 1 crore, (b) foreign travel costs exceeding Rs 2 lakh, and (c) electricity costs exceeding Rs 1 lakh.
What Is ITR 2 Form?
Income tax applies to every individual who is earning a certain amount of income and has a proper residential status. These tax amounts are dependent upon the source of income, amount of income, and other factors that are set by the income tax department. The ITR form is the income tax return form that is needed to be filled by every individual for the payment of their taxes.
These income tax return forms are categorised into different groups on the basis of tax payments. Here, the ITR 2 Form is basically meant for any individual who is not involved in any particular business or any kind of profession. The ITR 2 Form provides the provision to Indian citizens as well as a non-residence of India to file their tax returns under the Income Tax Department authority.
Who Is Eligible to File ITR 2?
The ITR 2 Form can be filled out by any individual or Hindu undivided family whose source of income is from any one of the given following:
- Income earned from the salary or any pension.
- Income considered under house property.
- Income earned from a capital gain.
- Any of the income from other sources.
- Any foreign income or foreign assets.
- Agricultural income must be more than ₹5000.
Any Indian or non-Indian citizen whose source of income is considered to be from any of the given options is liable to fill the ITR form.
Who Can Not File ITR 2?
The income tax return form 2 is basically meant for those individuals or Hindu Undivided families whose income does not have any source from a business or profession. Therefore, any of these entities whose income has a source or is earned from any kind of business or profession are not eligible to file this return. Similarly, the individuals who are eligible for filling out the form ITR-1 cannot fill this form. Moreover, the individuals who are under the partnership of a firm are not considered eligible for the ITR 2 filing.
What Is the Structure of ITR 2?
The ITR 2 Form is basically divided into 22 components which are named parts and schedules. A brief description of the structure of ITR form 2 is,
- Part A: This particular area is filled up with general information which needs to be correct and authentic.
- Part B-TI: This particular section is the total evaluation computation of overall income.
- Part B-TTI: This section provides the total computation of the tax liability that is applied over the total income.
- Schedule S: This is the structural detailing of the income from that of the overall salary.
- Schedule HP: Here, the initial HP stands for House property. Therefore, this section has the details of the House property.
- Schedule CG: this section evaluates the income from that of the total capital gains.
- Schedule OS: Reception follows in the detailing of the income from several other sources.
- Schedule CYLA: The detailing of the income based on the current year's losses.
- Schedule BFLA: BFLA stands for brought forward losses of earlier years.
- Schedule CFL: This section basically consists of the details about the losses that are carried forward to that future years.
- Schedule VI-A: According to the section under Chapter VI-A, the deduction made are evaluated in this part.
- Schedule 80-G: It consists of the details of any donation that is made to be deducted under section 80-G.
- Schedule SPI: This has the additional income amount of any specific person.
- Schedule SI: These evaluate the incomes that are being charged at a special rate.
- Schedule EI: The exempt income is evaluated in this section.
- Schedule IT: Advanced tax, as well as the tax on the self-assessment, are evaluated and recorded in this statement.
- Schedule TDS1: All the deductions made in the tax at the source of the salary are detailed in this section.
- Schedule TDS2: This consists of the statement that records any other source of deduction other than that of the salary.
- Schedule FSI: Any tax relief, as well as income from outside of India, is recorded in this statement.
- Schedule TR: Any charged tax that is paid outside of India is considered under the summary of this section.
- Schedule FA: Any foreign assets, property or income claimed outside India is mentioned in this section.
- Schedule 5A: It consists of the information that is claimed by the Portuguese Civil Code for the apportionment of the income between the spouse.
How to File the ITR-2 Form?
The ITR 2 Form can be filled out either offline or online. However, there are different provisions for filling out both of these forms. The offline form is meant for only the taxpayers whose age is above 80. They are required to apply the return form physically on paper or through any bar-coded form. These individuals will receive an acknowledgement slip from the income tax department while submitting the return form.
The ITR 2 filing process can be done online by providing a digital signature or submitting the general information electronically. The electronically submitted information is verified through the registered email ID. Later on, this verification can be done again at the submission of the form. However, it is much more reliable to print out the form and sign it manually and post the signed document to the Central Processing Centre of the Department within the provided time period, which is approximately four months from the filing of the form. It is very much necessary to calculate the total tax liability and file out the return before the due date to prevent any consequences.
The income tax department has provided the provision to the individual who has a decent source of income and has a certain amount of properties, assets, etc., are eligible as well as it is mandatory to pay the taxes for the provided services. These rates of taxes are based upon the income, as well as assets and properties status. However, these individuals or the taxpayers must pay their taxes annually, for which they need to file a form. This form is called the income tax return form. These forms are classified into a number of categories, whereas the ITR form 2 is made especially for any individual who does not have a source of income from any business, profession or company. The structure of the ITR 2 is divided into 22 components which include parts and schedules. These tax payments are mandatory for an individual, no matter if he is a citizen of India or considered a non-resident of India.