Income Tax Return (ITR-2) in India is applicable for individuals

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Step 1: Check Eligibility for ITR-2
  • ITR-2 is applicable for:
    • Individuals and HUFs with income from:
      • Salary/Pension.
      • More than one house property.
      • Capital gains (e.g., sale of property, shares, etc.).
      • Other sources (interest, dividends, etc.).
      • Foreign income or assets.
    • Not eligible for:
      • Income from business or profession (use ITR-3 or ITR-4 instead).
Step 2: Gather Required Documents

Before filing ITR-2, collect the following documents:

  1. Form 16 (if employed) or Form 16A (for TDS on other income).
  2. Bank statements (for interest income and tax payments).
  3. Aadhaar card, PAN card, and bank account details.
  4. Investment proofs (for deductions under Section 80C, 80D, etc.).
  5. Capital gains details (e.g., sale/purchase documents for property, shares, etc.).
  6. Rent receipts (if applicable).
  7. Foreign income details (if applicable).
  8. Previous year’s ITR (if any).
Step 3: Register on the Income Tax e-Filing Portal
  • Visit the official Income Tax e-Filing portal: https://www.incometax.gov.in.
  • Log in using your PAN (Permanent Account Number) as the user ID.
  • If you are a new user, register and create a password.
Step 4: Pre-fill Your Data

After logging in, go to e-File > Income Tax Returns > File Income Tax Return.

  • Select the Assessment Year (e.g., AY 2024-25 for FY 2023-24).
  • Choose ITR-2 as the form.
  • Click on Prefill Data to auto-fill details like:
    • Personal information.
    • Salary income (from Form 16).
    • TDS details (from Form 26AS/AIS).
Step 5: Fill in the ITR-2 Form
  1. Personal Information:
    • Name, PAN, Aadhaar, and contact details.
    • Bank account details (for refunds).
  2. Income Details:
    • Salary/Pension: Enter details from Form 16.
    • House Property: Enter rental income or interest on home loan for each property.
    • Capital Gains: Enter details of short-term and long-term capital gains (e.g., sale of property, shares, etc.).
    • Other Sources: Add interest income (e.g., savings account, fixed deposits, dividends, etc.).
    • Foreign Income: If applicable, provide details of foreign income and assets.
  3. Deductions:
    • Enter deductions under:
      • Section 80C (e.g., LIC, PPF, ELSS).
      • Section 80D (health insurance).
      • Other applicable sections.
  4. Taxes Paid:
    • Enter details of TDS, advance tax, and self-assessment tax paid.
Step 6: Verify the Details
  • Review all the details entered in the ITR-2 form.
  • Ensure there are no errors or discrepancies.
Step 7: Calculate Tax Liability
  • The portal will automatically calculate your tax liability based on the details provided.
  • Pay any additional tax due (if applicable) using Challan 280.
Step 8: Submit the ITR
  • After verifying the details, click on Proceed to Validation.
  • Once validated, click on Proceed to Verification.
Step 9: Verify Your ITR
  • Choose one of the following methods to verify your ITR:
    1. Electronic Verification Code (EVC):
      • Generate EVC via Aadhaar OTP, net banking, or bank ATM.
    2. Digital Signature Certificate (DSC):
      • If you have a DSC, use it to sign the return.
    3. Send Signed ITR-V to CPC:
      • If you don’t verify electronically, download the ITR-V, sign it, and send it to the Centralized Processing Center (CPC) within 120 days.
Step 10: Acknowledgment
  • Once verified, you will receive an acknowledgment (ITR-V) on your registered email ID.
  • Keep a copy of the acknowledgment for future reference.
Important Due Dates for ITR Filing
  • 31st July 2024: For individuals without audit requirements (FY 2023-24).
  • 31st October 2024: For individuals with audit requirements.
Penalties for Late FilingLate filing attracts a penalty of up to ₹5,000 under Section 234F.
  • Interest under Section 234A may also apply for delayed tax payments.
Conclusion

Filing ITR-2 is essential for individuals with complex income sources like capital gains, multiple house properties, or foreign income. By following the steps above and ensuring accurate details, you can file your ITR-2 smoothly. For further assistance, consult a tax professional or visit the official Income Tax e-Filing portal: https://www.incometax.gov.in.

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