ITR-2 Return Filing

Eligibility: Individuals and HUFs who have:

1. Income from salary/pension.
2. Income from house property (more than one).
3. Income from capital gains/loss on sale of investments/property.
4. Income from other sources (interest, dividends, etc.).
5. Foreign income or assets.
6. Agricultural income exceeding ₹5,000.
7. Income from lotteries, racehorses, legal gambling, etc.

Not Eligible:

• Individuals having income from business or profession (use ITR-3 or ITR-4).

Required Documents:

1. Personal Information:
   • PAN Card
   • Aadhaar Card
   • Bank Account Details
2. Income Details:
   • Salary slips/Form 16
   • Rental income from house property
   • Capital gains details (sale of property, shares, mutual funds, etc.)
   • Income from other sources (interest, dividends, etc.)
3. Deductions:
   • Investment proofs for claiming deductions under Section 80C, 80D, etc.
   • Interest on home loan
   • Medical expenses and insurance premiums
4. Other Details:
   • TDS certificates
   • Advance tax payment receipts
   • Details of foreign assets and income, if applicable

Process:

1. Collect Documents: Gather all necessary documents related to income, deductions, and other financial transactions.
2. Calculate Total Income: Compute total income by adding income from all sources.
3. Claim Deductions: Apply eligible deductions under various sections of the Income Tax Act.
4. Compute Tax Liability: Calculate tax liability based on income and deductions.
5. File ITR-2: Submit the ITR-2 form online through the Income Tax Department’s e-filing portal.

Benefits of Filing ITR-2:

1. Legal Compliance: Ensures adherence to tax laws and avoids penalties for non-compliance.
2. Claim Deductions: Allows taxpayers to claim deductions and reduce taxable income.
3. Avoid Interest and Penalties: Timely filing helps avoid interest and penalties on tax dues.
4. Carry Forward Losses: Enables carrying forward capital losses to offset against future gains.
5. Financial Proof: Serves as proof of income for loan applications, visa processing, and other financial transactions.

Deadlines:

• The due date for filing ITR-2 is typically July 31st of the assessment year.

Penalties:

• Late filing of ITR-2 attracts a penalty of up to ₹10,000 under Section 234F, depending on the delay and the total income of the taxpayer.

Conclusion: Filing ITR-2 is essential for individuals and HUFs with income from salary, multiple house properties, capital gains, and other sources to ensure compliance with tax laws, accurately report their income, and take advantage of eligible deductions. Timely and correct filing helps maintain financial discipline and avoid legal complications.