ITR-2

The ITR-2 is a Form used by Income Tax Assessees in India. The process of filing Tax Returns in India involves the use of various forms for different categories of Assessees and the ITR-2 is one such form.

ITR-2 Form

The ITR-2 Form is an important Income Tax Return form used by Indian citizens as well as Non Residents to file their Tax Returns with the Income Tax Department of India. The Income Tax Act, 1961, and the Income Tax Rules, 1962, require citizens to file their tax returns with the Income Tax Department at the end of every financial year and this form is a part of the filing process as specified by the Government of India.

The Income Tax Department has introduced a form called ITR 2 Form. This is mainly for Individuals and Hindu Undivided Families who does not possess any income from business or any profession rather than income received from more than a single property. It is very much comprehensive form than ITR 2A. And the only difference between 2A and 2 is ITR 2 can be filed by the person who invested in equity and holding profits in them (income from mutual funds, gold, shares, gold or property).

The due date for filing return with the Income Tax Department of India is 31 July every year. This is subject to change only if a directive to this effect is issued by the Income Tax Department or the Ministry of Finance, India. The Financial Year ends on 31 March every year so Assessees have a period of four months to prepare their Income Tax Returns.

Eligibility for the ITR-2 Form

The use of the ITR-2 Form is applicable to the following means of income only. This form is available for both Individuals as well as Hindu Undivided Families. Individuals earning an income only through the following means are eligible to fill and submit the form to the Income Tax Department.

• Earning Income through a Salary or Pension
• Income through House Property.
• Earning Income through capital gains (Short Term and Long Term)
• Earnings through Other Sources (includes Income through Lottery Winnings, through bets on Racehorses, and other Legal methods of Gambling)

The Income Tax Returns, if clubbed together with that of a spouse, minor child etc. needs to ensure that their sources of income are similar to those stated above. Only then can their returns be filed together. A difference of earnings in even one category makes the Assessee liable to fill a separate and applicable Income Tax Returns Form.

Non-eligibility for the ITR-2 Form

• Any Individual or Hindu Undivided Family whose income, in whole or in part, is earned either through a Business or a Profession.
• Individuals who are eligible to fill the ITR-1 SAHAJ form.
• An individual who is designated as a partner in a Partnership Firm is not eligible to fill the ITR-2 Form.

Special Concession for Salaried personnel

Salaried personnel who earn an income of Rupees Five Lakh or less are exempted from filing Tax Returns as per the directive of the Income Tax Department of India. This rule however is only applicable to those who earn less than Rupees Ten Thousand as Income by way of Interest earned through their Savings Bank Accounts. Those who earn Rupees Ten Thousand or more are required to file their Tax Returns.

E-filing compulsory for a certain section of Income Earners

The Central Board of Direct Taxes (CBDT) has made it compulsory for Individual and Hindu Undivided Families earning an income in excess of Rupees Five Lakh to file their Tax Returns only through the E-Filing Process. The manual filing of returns is no more an option for Assessees who come under this category. Electronic Filing of their Tax Returns is the only way this category can file their Income Tax Returns.