ITR-2 Salaried with Other Sources of Income


ITR 2 Form Filing

ITR 2 Form is an Important form income tax return form that is used by the Indian Citizens as well as the NRIs to file the return with the Income-tax department of India. The taxpayers who are not eligible to file ITR 1 can file ITR 1 to file the income tax returns. ITR 2 can be filed by the individuals and Hindu Undivided Families who have their income for the financial year through salary, pension, more than one property, income from capital gains, income from foreign assets, business or income from a profession as a partner and other sources that include lottery, Racehorses, legal gambling.
Also, an individual who is not eligible to file using ITR 1 as the income is exceeding Rs.50 Lakh can file ITR 2 Form.

Who can file Form ITR-2?

ITR form 2 can be filed by individuals and the HUF who are not eligible to file form ITR-1 receiving income from the “profits and gains from business or profession”. Thus persons having come from the following sources are eligible to file Form ITR 2:
  • Income from Salary/Pension
  • Income from House property ( can be from more than one house property)
  • Income from Capital gains
  • Income from other sources (Lottery, bets on horses, and other gambling)
  • Foreign Assets/Foreign Income
  • Agricultural income more than Rs.5000
  • A resident is not an ordinary resident and an NRI.
  • Also, a director of any company and an individual who is invested in unlisted equity shares of a company should file their returns in ITR-2

Who is not eligible to file Form ITR-2?

  • Any individual or Hindu Undivided Family with income that is fully or partially earned from the business or profession.
  • Individuals that are eligible to file ITR 1 Form.
  • Individuals who are partners in a Partnership Firm.

Documents required to file ITR 2

What documents are required to file ITR 2 returns?

  1. Copy of the previous year’s tax return
  2. Bank Statement
  3. TDS Certificate
  4. Savings Certificate/ Deductions
  5. Interest Statement that shows the interest that is paid throughout the year.
  6. Balance sheet, P & I, Account Statement, and other Audit reports wherever they are applicable.

How to file Form ITR 2?

The ITR 2 Form can be filed with the Income Tax Department either online or offline:

  1. Either by furnishing the return in a paper for. When paper returns are made at the time of submission of the paper returns an acknowledgment is issued by the Income Tax Department to the assessee.
  2. By furnishing the return electronically using the Digital Signature. ITR 2 forms are submitted by the assessee electronically using the Digital Signature Certificate an acknowledgment is received to the registered Email Id.
  3. It can also be done by transmitting the data in the return electronically under an electronic verification code.
  4. It can be done by transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR V.
  5. By furnishing a bar-coded return.

Instructions to be filed while Form ITR 2

The following instructions and guidelines need to be followed while filing ITR 2 form:

It is necessary to fill the form as per the following sequence:
  • Part A
  • All the schedules
  • Part B- TTI and Part B- TTI
  • Verification.
If the schedule does not apply to the assessee it should be struck out and it is necessary to mention NA ( Not Applicable)
The assessee must mention NA against any item that does not apply to him or her.
All the figures are to be rounded off to the nearest one rupee except the figures for total income/loss and the tax payable which is to be rounded off to the nearest multiple of ten.
Individuals that fall under the employer category should Choose Government if he or she is a Central or a state government employee.
The individuals who are working in the Public Sector Company should choose the "PSU"
ITR Form 2 cannot be used if the assessee is claiming double taxation relief under Section 90/90A/91.
ITR 2 is an annexure less form. No documents are required to be attached while submission.

Structure of ITR 2 Form

ITR-2 is divided into:
  • Part A: General Information
  • Schedule S: Details of income from salaries
  • Schedule HP: Details of income from House Property
  • Schedule CG: Computation of income under Capital gains
  • Schedule OS: Computation of income under Income from other sources
  • Schedule CYLA: Statement of income after set off of current year’s losses
  • Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years
  • Schedule CFL: Statement of losses to be carried forward to future years
  • Schedule VIA: Statement of deductions (from total income) under Chapter VIA
  • Schedule 80G: Statement of donations entitled for deduction under section 80G
  • Schedule 80GGA: Statement of donations for scientific research or rural development
  • Schedule AMT: Computation of Alternate Minimum Tax payable under section 115JC
  • Schedule AMTC: Computation of tax credit under section 115JD
  • Schedule SPI: Statement of income arising to spouse/ minor child/ son's wife or any other person or association of persons to be included in the income of the assessee in Schedules-HP, CG, and OS
  • Schedule SI: Statement of income which is chargeable to tax at special rates
  • Schedule EI: Details of Exempt Income
  • Schedule PTI: Pass-through income details from business trust or investment fund as per Section 115UA, 115UB
  • Schedule FSI: Statement of income accruing or arising outside India.
  • Schedule TR: Details of Taxes paid outside India
  • Schedule FA: Details of Foreign Assets and income from any source outside India
  • Schedule 5A: Statement of apportionment of income between spouses governed by Portuguese Civil Code
  • Schedule AL: Asset and liability at the year-end (applicable in case the total income exceeds Rs 50 lakhs)
  • Schedule DI: Schedule of tax-saving investments or deposits or payments to claim deduction or exemption in the extended period from 1 April 2020 until 30 June 2020
  • Part B-TI: Computation of Total Income
  • Part B-TTI: Computation of tax liability on total income