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ITR-2 Return Filing

Income tax return filing for persons having DIN or owing private limited company shares.

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ITR-2 Filing

ITR-2 form is for individuals and HUF receiving income other than income from Profits and Gains from Business or Profession. Thus, individuals with income from the following sources are eligible to file Form ITR-2:

  • Income from salary/pension
  • Income from house property (income can be from more than one house property)
  • Income from capital gains/loss on sale of investments/property (both short-term and long-term)
  • Income from other sources (including winning from lottery, bets on racehorses and other legal means of gambling)
  • Foreign income
  • Agricultural income of more than Rs 5,000
  • Resident not ordinarily resident and a non-resident
  • The total income from the above sources may exceed Rs 50 lakh.

    Further, if you are a Director of any company and an individual invested in unlisted equity shares of a company, you must file returns in ITR-2.

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What is ITR 2?

In India, taxpayers are categorized based on Income, and specific Income Tax Return (ITR) forms are assigned to individuals according to their income sources. Among these forms, ITR-2 is designated for individuals and Hindu Undivided Families who do not generate Income from professional or business activities.

Instructions for Completing the ITR-2 Form

When filling out the ITR-2 Form, it's important to follow these instructions and guidelines:

  • Complete the form in the following order: Part A, all schedules, Part B-TI, Part B-TTI, and then the verification section.
  • If any schedules do not apply to you, strike them out and mark 'NA' (Not Applicable).
  • Use 'NA' against any item that doesn't pertain to your financial situation.
  • Round off all figures to the nearest rupee, except for total income/loss and tax payable, which should be rounded off to the nearest ten rupees.
  • Select 'Government' as your employer category if you are a government employee. If you work for a public sector company of the Central/State Government, choose 'PSU.'

Documents

  • Form 16/16A: These documents contain information about your salary and tax deductions (TDS).
  • Form 26AS/AIS/TIS: This statement provides crucial details regarding tax credits, TDS (Tax Deducted at Source), and other relevant tax-related data.
  • Bank Statements: Collect bank statements that reflect Income from interest, dividends, or other financial transactions.
  • Capital Gains Details: Gather the necessary transaction documents if you have sold assets like property or stocks.
  • Details of Foreign Assets and Income (if applicable): Collect the relevant documents if you have foreign assets or earned Income abroad.
  • Aadhaar Card, PAN Card, and Other Identification and Contact Information: Ensure you have these identification documents readily available for reference during the filing process.

Steps involved

Step One

Documentation

Step Two

Computation of Income

Step Three

Calculation of Tax Payable

Step Four

Payment of Tax

Step Five

Preparation of Return

Step Six

Submission of Return

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