How to File ITR-2 (A.Y.2023-24) – Step-by-Step Procedure: You can use ITR-2 to file your income tax return if you are an individual and HUFs and earn over Rs. 50 Lakh without business income. An ITR-2 covers any income from a salary, pension, house property (More than one house property), capital gains, director in a company, unlisted equity shares, or foreign income that you receive. You should file ITR-3 or ITR-4 if you have business income. Adding another person’s income to a taxpayer’s income, such as a spouse or child, is also allowed to enter ITR-2.
Quick Summary of ITR-2 Filing
|ITR-2 Updates||– May 31, 2023: Income tax department provides pre-filled data for ITR-2 online filing. – May 12th, 2023: Excel-based utility for ITR-2 released. – February 24th, 2023: CBDT releases ITR-2 in PDF format.|
|What is ITR?||ITR is an income tax return used by taxpayers to file their income tax returns. Different types of ITR forms are available depending on the taxpayer’s income sources.|
|What is ITR-2?||ITR-2 is an income tax return form applicable to individuals and HUFs not engaged in business or profession. It covers income from salary, pension, house property, capital gains, foreign income, etc.|
|Who Can File ITR-2?||Individuals and HUFs with income from salary/pension, house property, capital gains, other sources, foreign income, agricultural income above Rs. 5,000, and specific residency statuses can file ITR-2.|
|Who Can Not File ITR-2||Individuals or HUFs with income from business or profession should not use ITR-2. Those eligible for ITR-1 or partners in a partnership firm should choose appropriate forms based on their circumstances.|
|Documents Required to File ITR-2||– Form 16 – TDS certificates (Form 16A) – Form 26AS – Rent-paid receipts – Summary/profit-loss statement of capital gain transactions – Bank passbook and FDRs – Details of rented property – Documentation for losses and previous year’s ITR – Tax-saving deduction proofs|
|Changes in ITR-2 for A.Y.2023-24||– New disclosure for ‘Retirement benefit income’ – Addition of ‘Schedule – VDA’ for reporting profits from VDA or crypto – Foreign Institutional Investor (FII) disclosure requirement|
|Pre-Requisites to File ITR-2 Online||– Registration on e-Filing Portal – PAN and Aadhaar linked – Active PAN – Registered mobile number linked to Aadhaar – Pre-validated bank account|
|Structure of ITR-2||– Part A: General Information – Schedule S: Income From Salary – Schedule HP: House Property – Schedule CG: Capital Gains – Schedule Other Sources – Schedule VI-A: Deductions – Schedule 80G and 80GGA: Donations – Schedule AMT and AMTC: Tax computation|
|Procedure to File ITR-2 Online/Offline||– Online Mode: Log in to the e-Filing portal, select ITR-2, enter details, verify and submit. – Offline Mode: Use the Excel-based utility, enter details, generate XML, and upload on the e-Filing portal.|
Table of contents
- Quick Summary of ITR-2 Filing
- ITR-2 Updates
- What is ITR?
- What is ITR-2?
- Who Can File ITR-2?
- Who Can Not File ITR-2
- Documents Required to File ITR-2
- Changes in ITR-2 for A.Y.2023-24
- Pre-Requisites to File ITR-2 Online
- Procedure to file ITR-2 Online or Offline
- Structure of ITR-2
- Due Date to File ITR-2 Online for A.Y. 2023-24
- Important Links for ITR-2
May 31, 2023
Now, the income tax department provides pre-filled data for ITR-2 online, making it very easy to file.
May 12th, 2023
The Income Tax Department has released the Excel-based utility for taxpayers to complete the ITR-2 form. You can download it by clicking here.
February 24th, 2023
The CBDT has released the ITR-2 in PDF format for A.Y.2023-24. You can download the ITR-2 (PDF Format) here.
What is ITR?
ITR is also known as an income tax return. ITRs are used by taxpayers to file income tax returns. Different types of ITR forms are available depending on a taxpayer’s income sources. There are columns for income sources, deductions, tax liability, tax payment, and verification during the financial year on ITRs. The taxpayer files their income tax return per the status (NRI, Resident, Individual, Business, Professionals) and income sources (salary, house property, business, capital gains etc.). There are a total of 7 ITRs forms to file income tax returns. We will discuss here only ITR-2.
What is ITR-2?
ITR-2 is an income tax return form applicable for individual taxpayers and Hindu Undivided Family (HUF) who are not engaged in any profession or business. Its applicability depends upon the taxpayer’s category and source of income. It includes income from capital gains, foreign income, or any agricultural income of more than Rs 5,000.
Who Can File ITR-2?
Form ITR-2 is applicable to individuals and HUFs who receive income from sources other than “Profits and Gains from Business or Profession.” Let’s examine the eligible sources of income for filing ITR-2:
1. Income from Salary/Pension:
Taxpayers earning income from salaries or pensions are eligible to file Form ITR-2.
2. Income from House Property:
Individuals earning income from one or more house properties can use Form ITR-2 for filing their returns.
3. Income from Capital Gains:
Both short-term and long-term capital gains or losses resulting from the sale of investments, properties, or securities make individuals eligible for filing ITR-2.
4. Income from Other Sources:
Income from sources such as winnings from lotteries, horse races, legal gambling, and other miscellaneous sources falls under the category of “Other Sources” and requires the use of Form ITR-2.
5. Foreign Income:
Taxpayers having income from foreign sources are also eligible to file Form ITR-2.
6. Agricultural Income:
Individuals with agricultural income exceeding Rs. 5,000 are required to file their returns using Form ITR-2.
7. Resident Not Ordinarily Resident (RNOR) and Non-Resident:
If you qualify as a resident but not an ordinarily resident (RNOR) or a non-resident, you are eligible to use Form ITR-2 for filing your returns.
8. Director and Unlisted Equity Shares:
Individuals who serve as directors in any company or have investments in unlisted equity shares are also required to file their returns using Form ITR-2.
Who Can Not File ITR-2
While the above criteria define the eligibility for filing ITR-2, there are exceptions where individuals or HUFs should consider alternative forms. Let’s explore these exceptions:
1. Income from Business or Profession:
Individuals or HUFs whose income is fully or partially derived from business or profession should not use Form ITR-2. They should opt for the appropriate form that suits their business structure or professional income, such as Form ITR-3 or ITR-4.
2. Eligibility for ITR-1 (Sahaj):
Taxpayers who qualify for filing returns using Form ITR-1 (Sahaj) should not use Form ITR-2. Form ITR-1 is suitable for individuals with income from salary, one house property, and other sources with total income below Rs. 50 lakhs.
3. Partnership Firm:
Individuals who are partners in a partnership firm should not use Form ITR-2. They should select the appropriate form, such as Form ITR-3 or ITR-4, based on their specific circumstances.
Documents Required to File ITR-2
As you all know, there is no requirement to attach any documents for the Income tax return or ITR-2 form. The following documents are not mandatory but for your help to file your ITR-2 smoothly, fast, and error-free. You keep these documents ready on your table before starting to file ITR-2.
Form 16: Obtain Form 16 from your employer if you receive a salary income.
TDS certificates (Form 16A): If TDS was deducted from interest earned on fixed deposits or savings accounts, make sure to have Form 16A issued by the deductors.
Form 26AS: Download Form 26AS from the e-Filing website to verify TDS details on salary and other income sources. Form 26AS Simplified
Rent-paid receipts: Keep rent-paid receipts handy if you rented a home to calculate House Rent Allowance (HRA) deductions, especially if you haven’t submitted them to your employer. Use Rent Receipt Generator Online Free
Summary or profit/loss statement of capital gain transactions: If you had any capital gain transactions with shares or securities, maintain a summary or profit/loss statement for accurate computation of capital gains.
Bank passbook and Fixed Deposit Receipts (FDRs): Gather these documents to calculate your interest income accurately.
Details of rented property: If you earn rental income from a property you rented out, collect information on the tenant’s rent payment, local tax payment, and interest on borrowed capital (if applicable).
Documentation for claiming losses: Keep a record of necessary documents that verify any losses incurred during the current year for claiming loss deductions.
Copy of previous year’s Income tax returns: If you wish to claim losses from the previous year, retain a copy of the income tax returns from the prior year that discloses the loss.
Documentation for tax-saving deductions: Gather receipts and proofs for tax-saving deductions under Sections 80C, 80D, 80G, and 80GG, such as life and health insurance receipts, donation receipts, rent receipts, and tuition fee receipts, if these were not considered in your Form 16.
Changes in ITR-2 for A.Y.2023-24
There have been no significant changes to the ITR forms. It is important to note the following changes in the new ITR-2 Form.
New Disclosure Added: There is a new disclosure for ‘Retirement benefit income’. It is necessary to disclose any earlier years on which relief under section 89A was claimed.
- An additional ‘Schedule – VDA’ has been added. Therefore, profits from VDA or crypto must be reported.
- Under the Capital Gains Schedule, a quarterly breakup of VDA must be provided.
- VDA transactions must be reported along with dates of sale and purchase.
Foreign Institutional Investor Disclosure: Another change in the ITR-2 form for 2023-24 is that FIIs and FPIs must provide their SEBI registration number.
Pre-Requisites to File ITR-2 Online
To file your ITR-2 online, you would need the following:
- Registration on the e-Filing Portal (How to Register and Login)
- PAN and Aadhaar are linked (mandatory w.e.f. 1st July 2023)
- PAN should be Active
- You must have a mobile phone number registered with your Aadhaar card (to e-verify your Income Tax Return)
- Pre-validated Bank Account (Mandatory for income tax refund)
Title: Understanding Eligibility and Exemptions for Filing ITR-2 in AY 2023-24
Filing income tax returns is an essential task for individuals and Hindu Undivided Families (HUFs) in India. Among the various forms available, Form ITR-2 is specifically designed for taxpayers with income from specific sources. In this article, we will explore the eligibility criteria for filing ITR-2 and highlight the exceptions where individuals or HUFs should opt for alternative forms.
Procedure to file ITR-2 Online or Offline
Here are the ways you can submit your ITR-2:
- Online Mode – through the e-Filing portal (Completely Online Procedure Through e-Filing Portal Prefilled Data)
- Offline Mode – through Offline Utility (Partially Online Partially Offline by Downloading Excel Utility)
Online Mode – Through the e-Filing portal
Step 1: First, you need to log into “incometax.gov.in“, which is the e-filing portal for income tax.
Step 2: The next step is to access your “Dashboard” after logging in. Select “e-File > Income Tax Return > File Income Tax Return”
Step 3: Now select “2023-24” as the assessment year and select the mode of filing “Online (Recommended)”.
Step 4: You can click on “Start New Filing” or you can resume filing if the process of filing was interept.
Step 5: Select the applicable status “Individual/HUF/Others”.
Step 6: As a next step, you must choose the type of Income Tax Return that applies to you, such as ITR-1/ITR-2/ITR-3/ITR-4.
Step 7: Once you have selected ITR-2, you need to check the list of documents needed and then click “Let’s Get Started”.
Step 8: Select the checkboxes that apply to you “Taxable income is more than basic exemption limit”.
Step 9: Check your prefilled data on the income tax filing portal. Verify and make changes if necessary. Click on “Confirm” after that.
Step 10: Enter your income and deductions for the assessment year 2023-24 (applicable to the financial year 2022-23).
Step 11: If necessary, make tax payments. For tax payments, there are two options: “Pay Now” and “Pay Later“.
Choosing “Pay Later” does not mean you can pay tax after the due date if you opt for it. Tax payments must be made by 31st July 2023 or before.
If you choose the “Pay Now” option. Enter your BSR code, Challan serial number, and tax amount carefully.
Step 12: If you are entitled to a refund of income tax because there is no tax liability. Click “Preview and Submit Return” to check.
Step 13: After that, click on “Proceed to Validation” and check the Declaration checkbox.
Step 14: Lastly, you will need to complete your certificate of an income tax return by clicking on “Proceed to Verification“.
Step 15: Your income tax return must be verified by e-Verify or by submitting an ITR-V by mail to CPC.
Structure of ITR-2
Part A: General Information
You must verify your prefilled data in Part A of the form. The form does not allow you to edit some of your personal information directly. It is possible to make the necessary changes by going to your e-Filing profile. The form allows you to edit your contact details, filing status, residence status, and bank details.
Schedule S – Detail of Income From Salary
You need to review/enter/edit details of your salary, pension, exempt allowances, and deductions as per Section 16 in Schedule Salary.
Schedule HP – Schedule House Property
You need to review, enter, or edit details relating to house properties (self-occupied, rented, or deemed rented). There are details about the co-owners, tenants, rent, interest, and pass-through income.
Schedule CG – Capital Gains
There is a separate calculation for capital gains arising from sales or transfers of different types of capital assets. Please compute capital gains for all capital assets of the same type when capital gains arise from the sale or transfer of more than one capital asset. If there is a transfer of land / building, the computation must be entered for each land / building. Your Schedule Capital Gains must include details of your Short-Term and Long-Term Capital Gains / Losses for all types of Capital Assets.
Schedule 112A and Schedule-115AD(1)(iii) provison
The purpose of Schedule 112A is to review, enter, or edit details regarding the sale of equity shares, equity-oriented funds, or units of business trusts.
Schedule 115AD (1)(iii) proviso involves entering the same details as for Schedule 112A but is applicable to non-residents
Note: The Scrip-wise details of each transfer must be entered if shares are bought on or before 31st January, 2018.
Schedule VDA- Income From Transfer of Virtual Digital Assets
You need to fill out to show how much money you made by selling or transferring your special things in a virtual world, like a video game.
Schedule Other Sources
This section of Schedule Other Sources is where you should review, enter, and edit details of all the income from other sources you receive, including special rate income, deductions under section 57, and race horse income.
Schedule Schedule Current Year’s Loss Adjustment (CYLA)
You can view details of current year income after set-off of current year losses in Schedule Current Year’s Loss Adjustment (CYLA). In the event that there are losses that cannot be carried forward from this year to the next, they are taken to Schedule CFL for carry forward into the next year.
Schedule Schedule Brought Forward Loss Adjustment (BFLA)
You can view details of income after setting off brought forward losses of earlier years in Schedule Brought Forward Loss Adjustment (BFLA).
Schedule Schedule Carry Forward Losses (CFL)
You can view details about losses to be carried forward by viewing Schedule Carry Forward Losses (CFL).
Schedule VI-A allows you to claim your deductions under Section 80 – Parts
Schedule 80G and Schedule 80GGA
You need to provide details of donations eligible for deduction under Section 80G and Section 80GGA in Schedule 80G and Schedule 80GGA.
You must confirm the computation of Alternate Minimum Tax pursuant to Section 115JC in Schedule AMT.
You need to include details of tax credits under 115JD in Schedule AMTC.
You have to add specified people’s income to Schedule SPI (e.g. spouse, minor child) if it’s includable or must be clubbed with your income.
It is possible to view the income that is subject to a special tax rate in Schedule SI. Amounts under various income types are taken from the relevant Schedules, such as Schedule OS and Schedule BFLA.
Schedule Exempt Income (EI)
You need to provide your details in Schedule Exempt Income (EI) if you have any exempt income, which is income not included in total income or not taxable. This schedule includes interest, dividends, agricultural income, any other exempt income, income not chargeable to tax through DTAA, and pass through income which is not chargeable to tax.
Schedule Pass Through Income (PTI)
According to sections 115UA and 115UB, you need to report business trust or investment fund pass-through income in Schedule Pass Through Income (PTI).
Schedule Foreign Source Income (FSI)
You must report any income that arises from or accrues outside of India in Schedule Foreign Source Income (FSI). This schedule is only available to residents.
The Schedule TR asks for a summary of taxes paid outside India which are being claimed as tax relief in India. The purpose of this schedule is to summarize the detailed information in Schedule FSI.
You need to provide details of any foreign assets or income derived outside India in Schedule FA. A Non-Resident or Not Ordinarily Resident need not fill out this schedule.
You must fill out Schedule 5A if you are subject to the Portuguese Civil Code 1860 system of community of property.
It is mandatory to disclose movable and immovable assets as well as liabilities related to such assets if your total income exceeds Rs. 50 lakh. The details of assets located in India are to be given only by non-residents or residents but not ordinarily residents.
Total Income (TI)
Your computation of total income (TI) will automatically be displayed in the Part B – Total Income (TI) section.
In the Tax Paid section, you need to verify the tax details you paid in the previous financial year. This includes TDS from salary / TDS from income other than salary, TCS and Advance Tax.
It is possible to view the overall computation of income tax liability in the Part B-TTI section.
Due Date to File ITR-2 Online for A.Y. 2023-24
Here are the due dates to file ITR-2 for audit cases and non-audit cases.
|Category of Taxpayer||Due Date for Tax Filing- FY 2022-23
|Individual / HUF/ AOP/ BOI
(books of accounts not required to be audited)
|31st July 2023|
|Businesses (Requiring Audit)||31st October 2023|
|Businesses requiring transfer pricing reports
(in case of international/specified domestic transactions)
|30th November 2023|
|Revised return||31 December 2023|
|Belated/late return||31 December 2023|
The official website provides resources such as FAQs, e-filing facilities, and other useful information to assist taxpayers in filing their income tax returns accurately. It’s always recommended to refer to the official government websites for the most up-to-date and accurate information regarding income tax-related matters. Here are some of the important links related to ITR-2 Filing and submission.
|Official ITR-2 Online User Manual (A.Y.2023-24)||Visit Here|
|Official ITR-2 FAQ||Visit Here|
|Download ITR-2 PDF Format||Download Here|
|Download ITR-2 Excel Utility||Download Here|
|Download ITR-2 Excel Utility (Updated Versions Check)||Visit Here|