ITR-2 Filing: What is ITR2 Form?

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  • Last Updated on 10 May, 2021

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An individual/ HUF, where the total income doesn’t include the income derived by way of income under the head “profits and gains of business and profession”, is required to file a return of income tax return in Form ITR- 2.

When ITR-2 Form has to be filed: 

In case the assessee is not eligible to furnish income tax return in Form ITR- 1.

  1. In case the income of the resident individual exceeds from Rs. 50 Lakhs.
  2. In the case where the resident individual receives income from:    
    1. more than one house property,     
    2. winning from lottery, or any other kind of gambling
    3. horse races,     
    4. agricultural income exceeding Rs. 5,000/-,    
    5. capital gains,    
    6. asset situated outside India or he has signing authority in any account located outside India
  3. In case the residential status of Individual/ HUF is “Residents and not ordinary residents (RNOR)” or “Non-residents (NR).”
  4. If an Individual is claiming relief of foreign tax under section 90/90A/91.

New ITR Forms for AY 2018-19: 

Central Board of Direct Taxes (CBDT) has notified new ITR forms for the Assessment Year 2018-19 for filing the return of income of Financial Year 2017-18. Certain clauses have been added/ modified in Form ITR-2 in comparison to last year.

Major changes are:

    • Income earned from partnership firms by way of salary, bonus, commission or remuneration, or interest on capital of the firm is also reportable in Form ITR- 2. However, the same shall be reported in Form ITR- 3.
    • Reporting of information pertaining to the fee for late furnishing of return as per the provisions of section 234F that has been inserted in Income Tax Act, 1961 w.e.f. 1st April 2018. 

Particulars

Cases

Amount of Late Fee

Income < 5 Lacs

In all cases where it is mandatory to file the return

Rs. 1,000/-

Income ≥ 5 Lacs

If return filed on or before 31.12.2018

Rs.5,000/-

In any other case

Rs.10,000/-
    • Reporting of detailed information relating to TDS deducted and TDS credit claimed.
    • Reporting of information relating to income from transfer of carbon credits.
    • Reporting of more details in case of capital gains arising from transfer of unquoted shares.
    • Reporting of sum taxable as gifts.
    • Assessee claiming DTAA relief is required to report more details
    • Detailed Information to be furnished relating to capital gains exemption
    • Disallowance of expenditure against residuary income if tax is not deducted and deposited with the Central Govt.
    • Reporting of remission or cessation of trading liability which is taxable as per Section 59
    • Removal of Gender from Personal Info.

Mandatory Provisions for furnishing return of income in form ITR-2 for AY 2018-19: 

1. E-filing of return is mandatory.

2. For the purpose of verification of return of income in form ITR- 2, Digital Signature is not mandatory and the following options are also available for verification:       

    • e-verification through Aadhar OTP      
    • e-verification through net banking if the bank account is linked with PAN.      
    • e-verification through EVC (Electronic Verification Code)      
    • physical verification by sending the signed ITR-V through post at CPC, Bengaluru

Author Bio: Radhika Daga is a CA Final student. Connect with her on Linkedin @www.linkedin.com/in/radhikadaga.  

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