ITR filing 2024 season is underway with less than a week to go before the deadline to file income tax return for AY 2024-25 ends on July 31. The Income Tax Department has notified as many as 7 ITR forms to be applicable to various categories of taxpayers depending on their income levels and sources. In this article, we will discuss steps to file ITR 2 and who actually should file this income tax return form?
Which category of income taxpayers should file ITR 2?
ITR-2 can be filed by a resident individual whose total income exceeds Rs 50 lakh during the financial year and has income from either of the sources – capital gains, income from more than one house property, foreign income, etc. Additionally, if an individual who holds directorship in a company or holds unlisted equity shared shall file ITR-2, explains Sandeep Agrawal, Director & Co-Founder, TeamLease RegTech.
Additionally, individuals who have income from profit and gains of business or profession shall not file ITR-2, he adds.
All Indian residents with active PAN and who are registered with the IT Department’s ‘e-filing’ portal can file ITR-2 online. The filing process has been simplified significantly with the introduction of ‘Pre-filled information’ which automatically populates the salary and interest income, and tax deductions.
Additionally, the Income Tax (I-T) Department has also introduced ‘Annual Information Statement (AIS)’ which provides all information available in Form 26AS i.e. high-value investments, TDS/TCS transactions, interest income, dividend, rent received, purchase and sale transactions of securities/immovable properties, etc. This helps an Individual with all the required information and helps in seamless filing and avoid errors.
Steps to file ITR-2 online:
Once an individual logs into the ‘e-filing’ portal, he/she shall follow the below steps:
1. Choose Assessment Year i.e. the year next to the year for which the return is being filed. For example, if the return is to be filed for year 2023-24, then the Assessment Year will be 2024-25.
2. Mode of filing shall be selected as ‘Online’ if the individual is filing it via the ‘e-filing’ portal;
3. Choose the Status as ‘Individual’;
4. Select ITR-2 from ITR forms lists (the portal also provides who shall file ITR-2);
5. ITR form has 25 sections which need to updated (if relevant).
Also read: ITR Filing 2024: Steps to file income tax return at incometax.gov.in; Check online process
Let us discuss some of most relevant/commonly used sections briefly:
a. Part A General: This section has the pre-filled data from e-Filing profile. An individual can either update the details from his / her e-Filing profile section or update contact details, filing status, residential status and bank details in the form itself.
b. Schedule Salary: Mostly the income and the deduction details shall be pre-filled and can be reviewed and updated by the Individual, if required.
c. Schedule House Property: Individual need to update the details relating to house property (self-occupied, let out, or deemed let out), details of co-owner details (if any) and details of income and expenses.
d. Schedule Capital Gains: Taxpayer need to update details of gains from transfer of each type of capital assets like land & building, shares & securities, etc.
e. Schedule 112A and Schedule-115AD(1)(iii) proviso: This section is applicable only in case of sale of equity shares or an equity-oriented fund trust on which STT is paid.
f. Schedule Other Sources: Section for income from other sources including income which are taxable at special rates.
g. Schedule VI-A: This section covers deductions available under Section 80 – Parts B, C, CA, and D (for example investments in NPS & saving schemes and payments for preventive health checkups)
h. Schedule 80G and Schedule 80GGA: This section covers donations made by an Individual which are entitled for deduction these sections.
i. Schedule AL: This section requires an individual (whose income exceeds ₹50 lakh) to disclose details of all assets (movable & immovable) and liabilities incurred in relation to such assets.
6. Once the required details are updated, an individual will be able to view a summary of total income (Section Part B Total Income), Taxes paid (TDS, self-assessment tax, advance tax etc.) and a summary of computation of tax liability (Section Part B-TT). Once the Individual is convinced that all income and deduction details are updated accurately, he / she can move forward for return filing.
7. Individual can check if any additional tax liability is payable, he/she can pay the same online and then submit the Income Tax Return.
8. Post filing, individuals are required to verify the filed return as well. The same can either be done online using Aadhar OTP or via pre-validated bank/Demat account or the signed physical copy shall be submitted via Speed Post within 30 days of the submission.