ITR-2 Form

Updated on Oct 06, 2018 - 05:12:30 PM

Income tax Department has categorized taxpayers on the basis of income, source of income and many other factors to ensure easy compliance. Taxpayers having incomes from different categories, thus, have to download and fill different Income Tax Return forms. For instance, the ITR-2 Form is for individuals and HUFs not carrying any profession or business. In this article, we cover the following.

Who is eligible to file ITR 2 for AY 2018-19?
Who cannot file ITR 2 for AY 2018-19?
What is the Structure of ITR 2?
How to file ITR 2?
Major changes introduced in ITR 2 for AY 2018-19
Major changes introduced in ITR 2 for AY 2017-18
What is ITR 2 for AY 2016-17?
Eligibility to file the ITR-2 Return for AY 2016-17
Structure of the ITR-2 Form
How to fill out my ITR-2 Form
Codes that prescribe special rates of tax, to be filled in Schedule SI
How to send your ITR-V to the CPC Office
Frequently Asked Questions

1. Who is eligible to file ITR 2 for AY 2018-19?

ITR Form 2 is for Individuals and HUF receiving income other than income from “Profits and Gains from Business or Profession”. Thus persons having income from 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 Race Horses and other legal means of gambling)
Foreign Assets/Foreign Income
Agricultural Income more than Rs 5000
Resident not ordinarily resident and a Non-resident

2. Who cannot file ITR 2 for AY 2018-19?

Any individual or HUF having income from Business or Profession
Individuals who are eligible to fill out the ITR-1 Form

Click here to download Form ITR 2 for AY 2018-19

Download

3. What is the Structure of ITR 2?

ITR-2 is divided into:

Part A: General Information
Part B-TI: Computation of Total Income
Part B-TTI: Computation of tax liability on total income
Details to be filled if the return has been prepared by a Tax Return Preparer
Schedule S: Details of income from salaries
Schedule HP: Details of income from House Property
Schedule CG: Computation of income under Capital gains
Schedule OS: Computation of income under Income from other sources
Schedule CYLA: Statement of income after set off of current year’s losses
Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years
Schedule CFL: Statement of losses to be carried forward to future years
Schedule VIA: Statement of deductions (from total income) under Chapter VIA
Schedule 80G: Statement of donations entitled for deduction under section 80G
Schedule SPI: Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of the assessee in Schedules-HP, CG and OS
Schedule SI: Statement of income which is chargeable to tax at special rates
Schedule EI: Details of Exempt Income
Schedule PTI: Pass through income details from business trust or investment fund as per Section 115UA, 115UB
Schedule FSI: Statement of income accruing or arising outside India.
Schedule TR: Details of taxes paid outside India
Schedule FA: Details of Foreign Assets
Schedule 5A: Statement of apportionment of income between spouses governed by Portuguese Civil Code
Schedule AL: Asset and liability at the year-end (applicable in case income exceeds Rs 50 lakhs)

4. How to file ITR 2?

You can submit your ITR-2 Form either online or offline.

Offline:

Only following persons can file their ITR offline:

Individuals who are of the age of 80 years or more.
Individual whose income is less than Rs 5 lakhs per year and who do not have to claim refund in the return.

Return can be filed offline by:

By furnishing a return in a physical paper form
By furnishing a bar-coded return

The Income Tax Department will issue you an acknowledgement at the time of submission of your physical paper return.

Online/Electronically:

By furnishing the return electronically under digital signature
By transmitting the data electronically and then submitting the verification of the return in Return Form ITR-V

If you submit your ITR-2 Form electronically under digital signature, the acknowledgement will be sent to your registered email id. You can also choose to download it manually from the income tax website. You are then required to sign it and send it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing. Remember that ITR-2 is an annexure-less form i.e. you do not have to attach any documents when you send it.

How do you send your ITR-V to the CPC Office?

We have a guide to help you print and send your ITR-V to the CPC office. Read our Guide →

5. Major changes introduced in ITR 2 for AY 2018-19

- Given that ITR-1 is not applicable for the RNORs and the non-residents, they have to necessarily go with ITR-2 for filing their return of income
- The applicability of ITR-2 has been made more clear in as much as now it is applicable for individuals and HUF having income other than income under the head “Profits and Gains from Business or Profession”
- The field of “Profits and Gains from Business or Profession” which was earlier featuring under Part B – TI has now been removed.
- Following this, Schedule-IF (Income from Firm) and Schedule-BP have also been removed. This now means, anyone earning income from a partnership firm, now has to file ITR-3 and not ITR -2
- Additionally, under Schedule AL, the field pertaining to “Interest held in the assets of a firm or association of persons (AOP) as a partner or member thereof” has been done away with
This means, a partner in a firm who could file his return in ITR 2 until AY 2017-18(specifically made available in ITR -2 for AY 2017-18) has to now file his return in ITR 3 for AY 2018-19
- Similar to ITR -1, even in ITR-2, under the Schedule on TDS, there is an additional field for furnishing details of TDS as per Form 26QC for TDS made on rent. Also, provision for quoting of PAN of Tenant for such rent cases has also been made.
The due date for filing the ITR-2 form for the Assessment Year 2018-19 has been extended from 31st July 2018 to 31st August 2018.

6. Major changes introduced in ITR 2 for AY 2017-18

a. Declaration of value of assets and liabilities by Individuals/HUF earning above Rs 50 lakhs in schedule ‘AL’

During 2016, the taxpayers were required to declare the value of assets and liabilities if their total income exceeds Rs. 50 lakhs and mention the cost of immovable property, jewellery, bullion, vehicles, shares, bank and cash balance, etc. But Now taxpayers are also required to disclose address of the immovable property and description of movable assets in new ITR Forms

b. Income of a Person as a partner in a Firm or association of persons

New fields have been introduced in ITR Forms for disclosure of ‘Interest held in the assets of a Partnership firm or Association of persons as a partner or member. Such members/partners are also required to disclose name, address, PAN of the firm or AOP.

c. Quoting of Aadhaar Number

Now, it is mandatory to mention the Aadhaar number in the return of income or Aadhaar Enrolment ID if applied for.

d. Disclosure of unexplained income and Dividend Income

New fields have been inserted in schedule ‘OS’ to declare unexplained credit or investment and dividend received from domestic companies above Rs 10 lakhs. Such persons cannot opt for ITR 1 Sahaj.

e. Disclosure of Cash deposits during Demonetisation

A new column has been introduced in all ITR Forms to report on cash deposited by taxpayers in their bank accounts during the demonetization period, i.e., from November 9, 2016, to December 30, 2016. However, the taxpayer is required to fill up this column only if they have deposited Rs 2 lakh or more during the demonetization period. If you are looking to file return for AY 2016-17, the continue below :

7. What is ITR 2 for AY 2016-17?

The ITR-2 Form is the Income Tax Return form for Individuals and HUFs who do not have any income from Business or Profession. The due date for filing the ITR-2 form for the Financial Year 2015-16 is 5th Aug 2016.

Start your Tax Return Now

To download latest ITR-2 click here. For downloading instructions to fill ITR-2 click here

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8. Eligibility to file the ITR-2 Return for AY 2016-17?

This Return Form is to be used by an individual or a Hindu Undivided Family, whose total income for the assessment year includes:

Income from Salary/Pension
Income from House Property
Income from Capital Gains (Short Term and Long Term)
Income from Other Sources (including winning from Lottery, bets on Race Horses and other legal means of gambling)
Foreign Assets

The following are not eligible to file the ITR-2 for AY 2016-17

Any individual or HUF with income wholly or partially earned from Business or Profession
Individuals who are eligible to fill out the ITR-1 Form
Individuals who are partners in a Partnership Firm

Not sure which ITR form you need to use? Read our guide for help.

Made a profit from selling a house property or a large asset?

Good news. The Income Tax Department allows tax relief under two sections when the capital gains are reinvested. Click here to read more.

9. structure of the ITR-2 Form?

ITR-2 is divided into:

Part A: General Information
Part B-TI: Computation of Total Income
Part B-TTI: Computation of tax liability on total income
Details to be filled if the return has been prepared by a Tax Return Preparer
Schedule S: Details of income from salaries
Schedule HP: Details of income from House Property
Schedule CG: Computation of income under Capital gains.
Schedule OS: Computation of income under Income from other sources.
Schedule CYLA: Statement of income after set off of current year’s losses
Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
Schedule CFL: Statement of losses to be carried forward to future years.
Schedule VIA: Statement of deductions (from total income) under Chapter VIA.
Schedule 80G: Statement of donations entitled for deduction under section 80G.
Schedule SPI: Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of assessee in Schedules-HP, CG and OS.
Schedule SI: Statement of income which is chargeable to tax at special rates
Schedule EI: Details of Exempt Income
Schedule IT: Statement of payment of advance-tax and tax on self-assessment.
Schedule TDS1: Details of tax deducted at source on salary.
Schedule TDS2: Statement of tax deducted at source on income other than salary.
Schedule FSI: Statement of income accruing or arising outside India.
Schedule TR: Details of taxes paid outside India.
Schedule FA: Details of Foreign Assets.
Schedule 5A: Statement of apportionment of income between spouses governed by Portuguese Civil Code.

My only income is from selling shares

Do you need to pay tax if your only income is from selling shares? It’s a complicated question but the experts have a simple answer. Click here to read more on our blog.

10. How do I fill out my ITR-2 Form?

Here are a few general guidelines to keep in mind while filling your ITR-2 form:

If any schedule is not applicable to you, strike it out and write —NA— across it
If any item is not applicable to you, write NA against it
Indicate nil figures by “Nil”
Put a “-” sign before negative figures
All figures are to be rounded off to the nearest one rupee except figures for total income/loss and tax payable. Those are to be rounded off to the nearest multiple of ten.
If you are an individual, under the Employer Category you should tick Government if you are a Central/State Government employee. You should tick PSU if you work in a public sector company of the Central/State Government.

The ITR-2 Form can also not be used if you are claiming double taxation relief under Section 90/90A/91.

Best sequence to fill it out?

The easiest way to fill out your ITR-2 Form is to follow this sequence:

Part A
All the schedules
Part B-TI and Part B-TTI
Verification

11. Codes that prescribe special rates of tax, to be filled in Schedule SI

Nature of Income	Section	Rate of Tax	Section Code
Tax on accumulated balance of recognised provident fund	111	To be computed in accordance with rule 9(1) of Part A of fourth Schedule	1
Short Term Capital Gains	111A	15	1A
Long-term capital gains (with indexing)	112	20	21
Long-term capital gains (without indexing)	112	10	22
Dividends, interest and income from units purchase in foreign currency	115A(1)(a)	20	5A1a
Income from royalty or technical services where agreement entered between 31.3.1961 to 31.3.1976 in case of royalty and between 29.2.1964 and 31.3.1976, an agreement is approved by the Central Government.	Paragraph EII of Part I of first schedule of Finance Act	50	FA
Income from royalty & technical services	115A(1)(b) if agreement is entered on or before 31.5.1997	20	5A1b1
Income from royalty & technical services	115A(1)(b) if agreement is entered on or after 31.5.1997 but before 1.6.2005	20	5A1b2
Income from royalty & technical services	115A(1)(b)if agreement is on or after 1.6.2005	10	5A1b3
Income received in respect of units purchased in foreign currency by an off-shore fund	115AB(1)(a)	10	5AB1a
Income by way of long-term capital gains arising from the transfer of units purchased in foreign currency by an off-shore fund	115AB(1)(b)	10	5AB1b
Income from bonds or GDR purchases in foreign currency or capital gains arising from their transfer in case of a non-resident	115AC(1)	10	5AC
Income from GDR purchased in foreign currency or capital gains arising from their transfer in case of a resident	115ACA(1)	10	5ACA
Profits and gains of life insurance business	115B	12.5	5B
Winnings from lotteries, crosswords puzzles, races including horse races, card games and other games of any sort or gambling or betting of any form or nature whatsoever	115BB	30	5BB
Tax on non-residents sportsmen or sports associations	115BBA	10	5BBA
Tax on income from units of an open-ended equity oriented fund of the Unit Trust of India or of Mutual Funds	115BBB	10	5BBB
Anonymous Donations	115BBC	30	5BBC
Income by way of long-term capital gains	115E(a)	20	5Ea
Investment Income	115E(b)	10	5Eb
Double Taxation Agreement			DTAA

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