Got Multiple Income Sources? We Simplify Your ITR-2 Filing!
Trusted By 1000+ LLPs
- Designed for Individuals & HUFs with Capital Gains & Multiple Incomes
- Maximize Your Tax Savings with Expert Assistance
- 100% Compliance & Secure Filing
Avoid Penalties & Late Fees
Optimize Deductions & Save More
Hassle-Free Filing
- Don’t Miss the ITR-2 Deadline – File Now!
Google Rating
4.6 
Trusted
4.7 ★
Get Instant Quote
ITR 2 Form for Income Tax Return Filing
It is a crucial responsibility of taxpayers of India to file Income Tax Returns. Income Tax Return filing will make sure about the compliance with tax laws and also contribute to the economy of the nation. It is a complicated task to select the appropriate form. Among the various forms that have been prescribed by the Income tax department, ITR 2 specifically serves some specific categories of taxpayers including HUFs i.e. Hindu Undivided Family. You should choose the correct ITR form wisely in order to comply with tax regulations and safeguard your financial interests.
Understand everything about ITR 2 properly with the help of top online income tax return filing portals like Click To Professionals.
What is ITR-2 Form?
Benefits of Filing ITR 2
Compliance With Tax Laws
Income Tax Return Filing will make sure that you meet legal obligations as well as to avoid penalties.
Carry Forward Losses
With the help of Income Tax Return Filing (ITR 2) you can carry forward losses in order to set off in subsequent years.
Easy Approval of Loan and Visa Applications
You can submit the receipts of ITR 2 as the proof of income for the facilitation of loan approvals and visa applications.
Claim Income Tax Refunds
If you file an Income Tax Return, you can claim refunds for excessive TDS or advance tax paid.
Avoidance of Notices
If you file Income Tax Return properly, you can minimize the chances of income tax notices.
Transparency
If you file the returns properly in detail, it will make sure about financial transparency and compliance.
Key Features of ITR 2
Multiple Income Sources
This form consists of the various sources of Income due to which ITR 2 becomes ideal for salaried individuals having additional income from investments, properties or capital gains.
Detailed Reporting
In ITR 2, you need to report income, deductions, and exemptions in detail in order to make sure about a transparent declaration.
Foreign Assets
ITR 2 is mandatory for such individuals who own foreign assets or earn any foreign income.
Capital Gains Disclosure
In ITR 2, taxpayers can disclose short-term as well as long-term capital gains from various investments including equity, real estate, and mutual funds.
Who Is Eligible to File Income Tax Return with ITR 2?
We will provide you with a general understanding of who is typically eligible to file ITR 2 form in India. The ITR 2 form in India is primarily meant for the income from various sources. Here are the key eligibility criteria for filing ITR 2. It can be filed by the Individuals and HUFs who meet some of the specific criteria which are as given below:
- Income from salary or pension.
- Income from more than one house property (multiple house properties).
- Income from capital gains, whether short-term or/ and long-term.
- Income from other sources including interests, dividends, winnings from lotteries, etc.
Who is Not Eligible to File Income Tax Return with ITR 2?
ITR 2 is not applicable to all individuals or HUFs i.e. Hindu Undivided Families. The given individuals are not allow to file ITR 2, instead they need to choose some other forms:
Individuals or HUFs having income from business or profession.
Individuals who are not eligible for the presumptive taxation scheme as per section 44AD, 44ADA, or 44AE, etc.
Income Tax Return Due Date
- The Income Tax Return last date for filing ITR 2 is typically the same as for other forms, providing protection from penalties for late filing.
- Usually the last date of filing ITR 2 will be 31st July until there are any changes made by the government.
Structure of Form ITR 2
The form ITR 2 which has been used to file Income Tax Return divides into different sections. In order to navigate the complexities of tax laws, you should have to understand the structure of form ITR 2 accurately. Here is the detailed structure of the form:
Part A: General Information
- This section consists of the basic details of the taxpayer including full name, PAN Number, Aadhaar Number, date of birth, contact information and bank account details.
Part B: Schedules
- Schedule HP: Details of income from house property.
- Schedule S: Details of income from salary or pension.
- Schedule CG: Details of short-term and long-term capital gains.
- Schedule OS: Income from other sources.
- Schedule SI: Special income taxed at special rates.
- Schedule EI: Exempt income details.
- Schedule FSI: Details of foreign source income.
- Schedule FA: Details of foreign assets and income.
Part C: Tax Computation and Tax Status
- Under this section, you will find the computed tax liability on the basis of the information that has been provided by you in the previous sections. If the amount is negative then you can claim it as refund and if it is positive then you have to pay the tax.
Part D: Verification
- This section includes the declaration and signature by the taxpayers.
Income Tax Return Process
The process of Income Tax Return includes a number of tricky steps. You should have to understand its process properly for which you can seek the professional guidance of expert ITR filing consultants. The major steps are as given below:
Firstly, you have to visit the official website of e- filing of income tax return which is https://www.incometax.gov.in/iec/foportal/
- After login, if you are a first time user you have to register yourself.
- If you are the repeat user you have to log in to the website.
- You have to enter your PAN as your user id and then click ‘Continue’.
- You have to check the security message given in the tick box.
- Then, you have to enter your password & click on the ‘Continue’ button.
After that, you have to select the status of filing ITR as Individual and click on ‘Continue’
- Personal information: Your basic details including your full name, PAN, Aadhaar Number, contact details, bank account details.
- Gross total income: You have to enter & verify your total income from all the sources along with the details of exempt income.
- Total deductions: The information about the deductions that you need to be claimed under the different sections.
- Tax paid: Reflects the tax paid by you from all the sources but not been limited to TDS, TCS, Advance Tax & Self – assessment
- Total tax liability: This section reflects the total tax liability as per the information provided by you previously. If the amount is negative then it can be claimed as the refund and if the amount is positive then you have to pay the following amount as tax.
You have to choose the reason for filing the ITR. You have to select the correct option that has been applicable to your situation:
- Taxable income is more than the basic exemption limit
- Meets specific criteria & compulsory requirement of filing the ITR
- Others
Find a local agent for your legal & registration service
+91 8448094507
Phone No.
info@clicktoprofessionals.com
Get Support
Essential Documents Required to File ITR 2
Personal Information
- PAN Card
- Aadhaar Card
- Bank Account Details (along with IFSC Code)
Income Details
- Form 16 for salaried individuals
- Form 16A for TDS on other income
- Salary Slips
- Rent Agreement or Receipts for house property income
- Form 26AS for Annual Tax Statement
Investment Details
- Details of capital gains transactions including sale of property, stocks, etc.
- Statements for mutual fund investments or equity shares
Tax Payment Proofs
- Advance Tax or Self-Assessment Tax Challans
- TDS Certificates
Foreign Income/ Asset Details
- Details of foreign income and assets, if applicable
Key Points to Remember While Filing ITR 2
You should take care of some of the key considerations while filing income tax return with the help of ITR 2 which are as given below:
Common Mistakes to Avoid While Filing ITR 2
Although the process of filing ITR 2 is very simple, still you have to take care of some mistakes that you should avoid while filing this form. Such common mistakes are as given below:
Filing the Wrong Form
You have to make sure that you should meet the eligibility criteria for ITR 2 before proceeding.
Mismatch in Income Details
It will be better to cross-verify the details in Form 16 and Form 26AS and bank statements with the information entered in ITR.
Incorrect Personal Details
You have to declare all your personal details including PAN, Aadhaar, and Bank account details.
Skipping Deductions and Tax Credits
You have to declare all eligible deductions to minimize the tax liability and must verify form 26AS in order to make sure about all TDS Credits are claimed.
Missing the Deadline
Just make sure that you don’t miss the deadline as late filing attracts penalties as per section 234F.
Penalties for Non-Filing of ITR 2
If you fail to file your ITR on time or provide incorrect information can lead to the hefty penalties which are as given below:
Late Filing Penalty u/s 234F
- If you file the ITR after the deadline but before 31st December, a penalty of Rs. 5,000/- may be levied on the taxpayer.
- If you file your ITR after 31st December, the penalty will be of Rs. 10,000/-
- For taxpayers having an income of below Rs. 5 lakhs, the maximum penalty will be Rs. 1,000/-
Interest on Outstanding Tax
- An interest of 1% per month may be charged on unpaid tax liabilities as per the section 234A, 234B, & 234C for delay in payments.
Prosecution
- In severe cases, if you fail to file Income Tax returns may lead to prosecution under the Income Tax Act.
Final Words
It is a simple but crucial process for individuals as well as HUFs i.e. Hindu Undivided Families having various income sources to file ITR 2. You can make sure about compliance with Income Tax Laws and enjoy the associated benefits by sticking to the given steps and avoiding common mistakes. The process of Income Tax Return Filing (ITR 2) not only helps in fulfilling legal obligations but also works as a crucial record for financial planning and transactions. If you understand properly and file ITR 2 timely, it will reflect responsible citizenship as well as contribute to the growth of the nation.
In order to navigate the complications or doubts you can seek the professional guidance of expert Income Tax Return consultants like Click To Professional.
