Income Tax Return Form 2

Who can file Income Tax Return by using ITR Form 2?

If a taxpayer does not derive income under the head “Profits and Gains from Business and Profession’’, then needs to download ITR Form 2. If the income is earned from the sources which are as follows are liable to pay ITR Form 2

• Income from Salary/Pension
• Income from Foreign Assets
• Income from Capital Gains (Both Long and Short Term)
• Agricultural Income of more than Rs.5000
• Income from other sources such as winnings from lottery or other legal gambling, etc

Who cannot file ITR 2? 

• Any individual or HUF whose income earning is either from business or profession.
• Individuals who are not eligible to file ITR through ITR Form 1.
  

How to file ITR Form 2 online?

A taxpayer who is eligible to file ITR Form 2 has an option to submit it online on the e-filing portal of the Income Tax Department. It can be filled easily by making use of the digital signature. The assessee can do e-verification of the ITR by using Aadhar through Electronic Verification Code (EVC) or through net banking if the PAN Card is linked through a bank account.

Can Taxpayer also do an offline filing of the ITR Form 2?

Taxpayers falling in any of the following categories are only eligible to pay ITR Form 2 offline:

• Individuals who are of the age of 80 years or more.
• Individuals whose net taxable income is less than Rs. 5 lakh and who do not need to claim a tax refund in the return.
  Returns can be filed by such individuals in offline mode by furnishing the return in physical form to the Income Tax Department. The department will issue an acknowledgment receipt after submission of the filled out ITR 2 form.

The Central Board of Direct Taxes (CBDT) has given a notification of new ITR Forms from the assessment year 2018-19. Some of the changes that have been introduced to ITR Form 2 are mentioned below:

• ITR Form 2 is applicable for individuals belonging to Resident Non-Ordinary Residents and Non-Resident categories.
• Under the head “Profits and Gains from Business and Profession” which were earlier featuring under Part B has been now removed from the new ITR 2 form.
• Also, Schedule-IF (Income from Firm) and Schedule-BP have been removed. This means that any income earned from a partnership firm must do filing through ITR Form 3 only.
• Under the TDS Schedule of Form 2, an additional field for furnishing details on TDS deducted on rent income (Form 26QS) has been added. It also demands to mention the PAN of the tenant.