ITR-2 Form

The 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.

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1. Who is eligible to file ITR 2 for AY 2020-21 and AY 2021-22?

Form 2 for individual ITR and HUF earning income other than “Profit or Profit from Business or Technology”. People who earn money from the following sources are therefore entitled to submit an ITR 2 form:

  • 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

The director of any company and person invested in unregistered company shares will be required to submit their forms to ITR-2.

2. Who cannot file ITR 2 for AY 2020-21 and AY 2021-22?

ITR-2 is divided into:

  • Part A: General Information
  • Schedule S: Details of income from salaries
  • Schedule HP: Details of income from House Building
  • CG Plan: Calculation of income under Capital Profit
    • Schedule 112A - From the sale of a share equity or unit of equity oriented fund / business trust to which STT is paid
    • Schedule 115AD (I) b (b) (iii) conditions- For Non-Citizens - From the sale of equity shares of the company or equity oriented fund / trust trust business to which STT is paid.
  • Schedule OS: Calculation of revenue under Revenue from other sources
  • CYLA Schedule: Statement of income after the current set of losses
  • Schedule BFLA: Statement of income after the suspension of unauthorized losses submitted in previous years
  • Schedule CFL: Statement of losses to be continued for years to come
  • VIA Program: Statement of deduction (from full salary) under Chapter VIA
  • Schedule 80G: Statement of donations entitled to deductions under section 80G
  • Schedule 80GGA: Statement of contributions to scientific research or rural development
  • Schedule AMT: Calculation of the Minimum Tax payable under section 115JC
  • Schedule AMTC: Calculation of tax debt under section 115JD
  • Schedule SPI: Income statement from spouse / child of the child / young son or other person or organization that will be included in the income of the beneficiary in Schedules - HP, CG and OS
  • Schedule SI: Statement of taxable income at special rates
  • EI Plan: Details of released revenue
  • Schedule PTI: Transfer income information from a business fund or investment fund in terms of Section 115UA, 115UB
  • FSI Program: A statement of income accruing to or from outside India.
  • Schedule TR: Details of taxes paid outside of India
  • FA Program: Export Details and Revenue from any source outside India
  • Schedule 5A: Statement of income sharing between spouses held by the Civil Civil Code
  • Schedule AL: Assets and liabilities at the end of the year (applicable if the amount of revenue exceeds Rs 50 lakhs)
  • Schedule DI: Schedule of investment savings or deposits or payments for a reduction or release for an extended period from 1 April 2020 to 30 June 2020
  • Part B-TI: Complete accounting
  • Part B-TTI: Calculation of tax debt on gross salary
  • Tax payments - Details of previous tax payments and self-assessment tax
  • Details must be completed if the refund is prepared by the Tax Ombud

3. How to file ITR 2 Form ?

You can submit your ITR-2 Form either online or offline.
Offline:
Only the following persons can file their ITR offline:

  • Individuals who are of the age of 80 years or more.

Return can be filed offline by:

  • By furnishing a return in a physical paper form
  • By furnishing a bar-coded 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 a digital signature, the information will be sent to your registered email ID.
You can also choose to download it manually from the Income Tax website. You must then sign and send it to the CPC office of the Income Tax Department 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.

Download ITR 2 form for AY 2021-22 Click here to download Form ITR 2 for AY 2021-22

4. Major changes introduced in ITR 2 for AY 2021-22

  • ITR forms have been updated to include the declaration of choice between the old or new tax regime introduced by Finance Act 2020 under section 115BAC. Form 10IE needs to be submitted to the ITR department before filing an ITR if the observer chooses to pay tax in the new tax format. ITR forms require a consent number of Form 10IE in the event that a person thinks they are electing a new tax regime.
  • Financial Act 2020 removes the taxation of benefits from a company to an investor. Sections 10 (34), 10 (35), 115-O, 115-R, 115BBDA are amended. A new line has been added to the OS Schedule to allow for deductions such as interest on income from income. Also, a new line has been added under the OS schedule to include the details of the payroll in the hands of the business owners.
  • All ITR forms enable claimants to provide a quarterly dividend of dividend income for the purpose of calculating interest under section 234C.
  • ITR forms have been updated to include the effect of a few liberties by showing the ‘payroll calculated‘ before the minimum release ’and‘ after the minimum release ’. Prior to this, there was no separate effect that needed to be shown on ITR forms.
  • Schedule DI included in previous ITR forms for any investment made over an extended period of time allowed, e.g. 1 April 20 to 31 July 20, has now been removed from all ITR Forms.
  • Section 50C regulates the determination of the sale price in the event of land or building or both. If the sale value is less than the value of the stamp function, the value of the stamp will be considered the full value of the estimate without a difference of 5%. Finance 2020 has increased the tolerance limit from 5% to 10%, and changes have been made to the ITR.
  • Separate disclosure of the financial contribution under schedule 80GGA and date is required in the ITR form.
  • The ITR form has been updated with the new column under schedule 112A and 115AD (1) (b) (iii) condition in order to provide information on the type of security transferred. Also, both schedules have been updated to enable the 'size clause' by allowing specifying details such as retail price, FMV, and COA security.

5. Major changes introduced in ITR 2 for AY 2020-21

  • RNORs and non-residents must submit their tax returns to ITR-2 even if the income is less than Rs 50 lakh.
  • The taxpayer must disclose (a) the amount issued in excess of Rs 1 crore on existing bank accounts, (b) costs incurred in excess of Rs 2 lakh in foreign travel (c) costs incurred in excess of Rs 1 lakh in electricity.
  • Resident individuals who own more than one house property should also file their income tax return in ITR-2.
  • ITR-2 continues to apply to people living on their salaries with a total income of more than Rs 50 lakh.
  • Any taxpayer who has money from a business or profession cannot use ITR-2.
  • In the event that a person is a director of a company or holds unlisted shares, the 'type of company' must also be disclosed.
  • If short-term or long-term profits are obtained through the sale of land or property or both, the buyer's details namely name, PAN or Aadhaar, a percentage of ownership, and address must be provided.
  • A separate 112A schedule for the calculation of long-term capital gains in the sale of equity shares or business trust units to be paid to STT.
  • Under ‘income from other sources, the taxpayer must provide details of ‘any other income’.
  • Details of the reduction against ‘income from other sources should be provided.
  • The ‘Schedule VI-A’ of the tax deduction is amended to include deductions under section 80EEA and section 80EEB.
  • In the case of a business trust or investment fund, the details of ‘capital gains’ income and ‘dividend’ income should be provided.
  • Details of investment tax deduction applications or payments or expenses incurred between 1 April 2020 and 30 June 2020.
  • While providing details of bank accounts, if a taxpayer selects multiple bank accounts for a repayment loan, the tax department may select any refund account processing account.

6. Major changes introduced in ITR 2 for AY 2019-20

  • 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 effectiveness of ITR-2 has been made clearer as it now applies to individuals and HUFs with income other than income under the heading “Profit and Profit from Business or Technology”.
  • The residence status is divided into “Indian (Individual) Residence” status and “Indian Residence (HUF) status”. In the case of “Indian (Individual) Residence” status, the 3 sub-categories - “Resident”, “Resident but Not Common Resident” and “Non-Citizen”, have been stated to require that person to mark a particular category. Taxpayers must state the number of days of stay in India; In addition, in the event of non-residency, a person is required to specify a residential capacity for the past year provided by the Taxpayer Identification Number to the relevant authorities. Also, in the event that a person is an Indian citizen or a person from India (PIO), the period of residence in India last year (days) and the period of residence in India within the last 4 years (days).
  • In the event that the ITR is filed by a designated attorney, additional information should be provided about the legal capacity of the appointed attorney (optional on the withdrawal provided).
  • Each taxpayer must provide details about the management held at any company in the past year, and state whether the shares are listed or not listed.
  • Each taxpayer must provide information on investments in unregistered shares and movements in that investment throughout the year.
  • Under the income from salaries, the following information must be provided: 1. Salary in terms of section 17 (1) 2. Amount of perquisites in terms of section 17 (2) 3. Benefit in lieu of salary in terms of section 17 (3) In the event of a salary received from more than one employer, the full remuneration for the above divisions should be given for each such function. From the total salary, the following must be deducted: 1. Section 10 fees - details must be specified2. Detention under section 16
  • Under house income, the provision of the employer's PAN is mandatory, if tax is deducted under section 194-IB. The creation of an employer's TAN is mandatory if taxes are deducted under section 194-I.
  • In the event of short-term or long-term proceeds from the sale of land or property or both, the buyer's details namely name, PAN, percentage share, and address must be provided. The PAN must be authorized in the event of a TDS under section 194-IA or when the PAN is quoted by the consumer in the documents.
  • Interest income in the form of income surplus should be disclosed under "Revenue from other sources".
  • Information on the collection/receipt of revenue from other sources on a quarterly basis in respect of revenue and revenue in the form of lotteries, crossword puzzles, races, games, etc. For the purpose of calculating interest under section 234C.
  • Under further processing and loss plan: Classification of short-term and long-term taxable income at special rates in India according to the DTAA as well as source revenue from other sources charged at effective rates.
  • Introduction of section 80TTB deduction for senior citizen.

    Bifurcation of donation qualifying for deduction under section 80G into cash and other modes.

  • Details of the contributions of scientific research and development under section 80GGA with details of name, address, PAN, cash and other contributions, and fair value.
  • Schedule AMT - incorporating another lower tax payable under section 115JC and the AMTC Program - begins with the calculation of tax credit under section 115JD.
  • When disclosing the income of persons defined under the SPI schedule, “Income type” is replaced by “Head of Revenue”.
  • Under Schedule SI, the following revenue is charged at additional special rates: 1. Short-term and long-term benefits2. Any other income charged at special rates3. Other sources of revenue are charged at special rates4. Other sources of revenue are charged at special rates in India according to DTAA5. Exceed income in the form of long-term and short-term gains6. by earning money in the form of income from other sources
  • Under Schedule EI, the following disclosures are required in case of agricultural income exceeds Rs. 5 Lakhs:
    • The name of the region and the PIN where the agricultural land is located
    • Estimation of agricultural land in Acre
    • Whether the agricultural land is owned or leased (demoted)
    • Whether agricultural land is irrigated or rainfall (reduced to supply)
    • The above disclosures will be provided separately for each agricultural land
    • Under Schedule EI, information on taxable income in terms of the DTAA provides information such as value and type of income, country name and code, Article of the DTAA, Head of income and whether TRC has been received.
    • Tax-free cash flow information.

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

  • The effectiveness of ITR-2 has been made very clear as it now applies to individuals and HUFs who have any income other than income under the heading “Profit and Profit from Business or Employment”.
  • The “Business and Technology Profit or Technology” category that was previously included under Part B - TI has now been removed.
  • Following this, Schedule-IF (Income from Firm) and Schedule-BP were also removed. This now means that anyone earning money from a corporate company should now enter ITR-3 and not ITR-2.
  • In addition, under Schedule AL, the field relating to “Interest held by the assets of a company or a corporation (AOP) as a partner or member” has been removed.
  • This means that a partner in the company who can submit his / her returns to ITR 2 until AY 2017-18 (specially made in ITR -2 for AY 2017-18) should now submit his / her form ITR 3 AY 2018-19 continue.
  • Similar to ITR-1, even in ITR-2, under the Schedule to TDS, there is an additional field for providing TDS details in terms of Form 26QC of TDS for hire. Also, provision has been made to cite Employer PAN for such employment cases.

Frequently Asked Questions

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How to send your ITR-V to the CPC Office

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


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How do I file ITR-2 when I have sold a house?

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Yes you can. Read our guide to understand the process in depth.


CEO Krishna Gopal

Krishna Gopal Varshney is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Myitronline.com. Myitronline is amongst the top emerging startups of Asia and authorized ERI by the Income Tax Department. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. ”

Krishna Gopal Varshney
Co-founder & CEO