How to file ITR-2 form: 10 documents you need to file ITR-2 Let's look closer at who should file ITR-2 and the important documentation required for filing
As the income tax return (ITR) filing deadline looms, i.e., July 31, 2024, it's essential to use the correct income tax return form. Although ITR 1 is widely used by salaried individuals with specific income sources, it's not suitable for everyone. Some individuals must use the ITR-2 form instead. ITR-2 can be filed using the income tax department's Excel or Java programs, or online through the e-filing portal. Let's look closer at who should file ITR-2 and the important documentation required for filing.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;} Also read: ITR filing FY 2023-24 FAQs: Name of taxpayer in ITR does not match with name in PAN database; here’s what you can do
Also read: How to file ITR-2 online with salary, capital gains and other incomes for FY 2023-24 (AY 2024-25)?
Who is eligible to file ITR-2
ITR-2 can be filed by individuals or HUFs who:Are not eligible to file ITR-1 (Sahaj)Do not have income from profit and gains of business or profession and also do not have income from profits and gains of business or profession in the nature of:· Interest· salary· Bonus· Commission or remuneration, by whatever name called, due to, or received by him from a partnership firmHave the income of another person like spouse, minor child, etc., to be clubbed with their income – if income to be clubbed falls in any of the above categories.
Who is not eligible to file ITR-2
ITR-2 cannot be filed by any individual or HUF, whose total income for the year includes income from profit and gains from business or profession, and also who has income in the nature of:· Interest· Salary· BonusCommission or remuneration, by whatever name called, due to, or received by him from a partnership firm.
What documents are needed to file ITR-2?
1. If you have salary income, you need Form 16 issued by your employer.2. If you have earned interest on fixed deposits or saving bank account and TDS has been deducted on the same, you need TDS certificates i.e., Form 16A issued by Deductors.
3. You will need Form 26AS to verify TDS on salary as well as TDS other than salary. Form 26AS could be downloaded from the e-Filing portal.
4. If you are living in rented premises, you need rent paid receipts for calculation of HRA (in case you have not submitted the same to your employer).
5. If you have any capital gains transactions in shares, you will need a summary or profit / loss statement of capital gain transactions of shares or securities during a year, if any, for computation of capital gain.
6. You will need your bank passbook, Fixed Deposit Receipts (FDRs) to calculate amount of interest income.
7. If you have received rent from your rented house property, then you will need your tenant / local tax payment / interest on borrowed capital details (if any) to calculate income from house property.
8. In case you want to claim any loss incurred during the current year, then you will need the relevant documents exhibiting the loss.
9. In case you wish to claim previous year’s loss, you will need a copy of ITR-V pertaining to the previous year, disclosing the said loss.
10. You will also need documents or proofs for claiming tax saving deductions u/s 80C, 80D, 80G, 80GG such as life and health insurance receipts, donation receipts, rent receipts, receipts for tuition fees etc., if the same were not considered in your Form 16.
What precautions should I take to avoid issues while filing my ITR?
To avoid issues in filing your return and getting your refund, you must ensure you have done the following:1. Linked Aadhaar and PAN.
2. Pre-validated your bank account where you want to receive your refund.
3. Choose the correct ITR before filing it; else filed return will be treated as defective and you will need to file a revised ITR using the correct form.
4. File the return within the specified timelines.
5. Verify your return - you can opt for e-Verification (recommended option – e-Verify Now) is the easiest way to verify your ITR.
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This story originally appeared on: India Times - Author:Faqs of Insurances
