ITR-2

Filing your ITR-2 tax return can seem daunting, but it's essential to get it right to avoid penalties. This form is for individuals with income from salary, house property, capital gains, and foreign assets. Make sure to gather all necessary documents and report all income accurately. Consider seeking professional help if needed. Timely and accurate filing can ensure smooth relations with the tax department.

ITR-2 Form Filing

Filing your ITR-2 tax return form can be overwhelming, but it can be a breeze with some preparation. This form is meant for individuals who have income from salary, house property, capital gains, and foreign assets. To file correctly, gather all the necessary documents, such as Form 16, capital gains statements, and foreign asset information. Accurately report your income, including any foreign assets or income earned abroad. If you need more clarification, consider consulting a tax professional for assistance. Filing your ITR-2 form correctly and on time can help you avoid penalties and ensure a hassle-free experience with the tax department.

Who can file Form ITR-2?​

• Individuals and Hindu Undivided Families (HUFs) with income from salary, house property, capital gains, and foreign assets can file Form ITR-2.
• This form is specifically for those who cannot file using Form ITR-1.
• Taxpayers who have earned income from business or profession or are eligible for presumptive taxation under Section 44AD/44ADA/44AE cannot use this form.
• The form requires the taxpayer to report their foreign assets and income details.
• Taxpayers with capital gains from selling securities or property must also use this form.
• Those filing Form ITR-2 must ensure they have all the necessary documents and accurately report their income to avoid penalties.

​Who is not eligible to file Form ITR-2?

• Individuals and HUFs with income from business or profession cannot file Form ITR-2.
• Taxpayers eligible for presumptive taxation under Section 44AD/44ADA/44AE cannot use this form.
• Individuals with income from salary, house property, and other sources but no foreign assets or income should file Form ITR-1 instead.
• Taxpayers who have income from capital gains but no other sources of income should file Form ITR-3 instead.
• Non-resident taxpayers and those earning income from outside India should file Form ITR-2 only if they have income from foreign assets or sources. Otherwise, they should use Form ITR-1 or Form ITR-3.

​Documents required to file ITR-2

• Form 16: This is provided by your employer and contains details of your salary income, TDS deducted, and other allowances.
• Capital Gains Statements: If you have sold any securities or property during the year, you must provide statements showing transaction details.
• Foreign Asset Information: You must provide details if you have any foreign assets, such as bank accounts or property.
• Bank Statements: You must provide bank statements for all your accounts to report any interest income earned.
• Rent Agreement and Municipal Tax Receipts: If you have rental income, you must provide these documents to report the income earned.
• Investment Documents: If you have invested in instruments such as mutual funds or fixed deposits, you must provide the relevant documents to report the income earned from these investments.
• Aadhaar Card and PAN Card: These are required for identification purposes.
• Any other documents are required to report your income accurately.