This page is about ITR-2 Form and it’s essential know-about which a taxpayer need to know if they fall under the prescribed form category. This page includes descriptions for eligibility, form structure, filing instructions and essential terms and conditions.
Any individual or HUFs who do not generate any income from business or profession need to use ITR-2 form to file annual income tax returns. Taxpayers using ITR-2 need to furnish their income tax return by 31st July of every year.
This for, is specific to the taxpayers including individuals and HUFs, who earn income from the following sources:
ITR-2 is divided into multiple parts and schedules which require you to fill in the related information regarding your tax information.
The Parts in ITR-2 form:
The schedules are:
Codes that prescribe special rates of tax that need to be filled in Schedule SI
|Nature of Income||Section||Rate of Tax||Section Code|
|Tax on accumulated balance of recognized PF||111||To be calculated according to the rule 9(1) of Part A of the fourth Schedule||1|
|Short Term Capital Gains||111A||15||1A|
|Long term capital gains including indexing||112||20||21|
|Long term capital gains excluding indexing||112||10||22|
|Income dividends and interest from units purchase in foreign currency||115A (1)(a)||20||5A1a|
|Income from technical services or royalty, where agreement entered between 31.3.1961 to 31.3.1976 in case of royalty and between 29.2.1964 and 31.3.1976, and agreement is approved by the Central Govgernment.||Paragraph EII of Part I of first schedule of the Finance Act||50||FA|
|Income from technical services or royalty||115A (1)(b) if agreement is entered on or before 31.5.1997||20||5A1b1|
|Income from technical services or royalty||115A (1)(b) if agreement is entered on or after 31.5.1997 but before 1.6.2005||20||5A1b2|
|Income from technical services or royalty||115A (1)(b)if agreement is on or after 1.6.2005||10||5A1b3|
|Income received in respect of units brought in foreign currency by a off-shore fund||115AB (1)(a)||10||5AB1a|
|Earnings by way of long-term capital gains arising from the transfer of units purchase in foreign currency by a off-shore fund||115AB (1)(b)||10||5AB1b|
|Earnings 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|
|Earnings 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 from life insurance business||115B||12.5||5B|
|Winnings from lotteries races including horse races crosswords puzzles card games and gamblings or betting of any form or nature||115BB||30||5BB|
|Tax levied on non-residents sports associations or sportsmen||115BBA||10||5BBA|
|Tax levied on income from units of an open – ended equity oriented fund of the Unit Trust of India or of Mutual Funds||115BBB||10||5BBB|
|Income from long-term capital gains||115E (a)||20||5Ea|
|Income from investment||115E (b)||10||5Eb|
|Double Taxation Agreement||DTAA|
While filling ITR-2 form, must keep these points in mind:
The best sequence to follow while filing ITR-2 is:
ITR-2 Form can be submitted online or offline.
An acknowledgment will be issued at the time of submission of your physical paper return by The Income Tax Department.
Online / Electronically:
It is compulsory to E-file income tax returns electronically for the following categories:
The acknowledgment will be sent to your registered email id in the case of E-filing ITR using the ITR-2 Form under digital signature. Also, one can download it manually from the official income tax website and then you are required to sign it and send it to the CPC office in Bangalore within 120 days from the day of E-filing.
No attachments or documents need to be attached while sending ITR-2.
Certain incomes is exempted from tax liability under section 10 of the Income Tax Act. They include:
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