Who Should Use ITR-2?
According to the Income Tax website, “The ITR-2 may be filed by individuals or HUFs who:
Not eligible to file ITR-1 (Sahaj)
You have no income from the profits and earnings of a business or profession and also you do not have income from the profits and earnings of a business or profession in the nature of:
(4) Commission or remuneration, in whatever name it is called, owed to, or received from a partnership firm
Having the income of another person such as a spouse or a minor child, etc., to be added to his income – if the income to be accrued by clubbing falls into any of the above categories.”
Submitting an ITR-2 form
The taxpayer must submit the ITR-2 form electronically. This can be accomplished entirely online or partly online and partly offline. If the entire ITR-2 form is submitted online, some data, including personal information, salary income, capital gains, dividend income, interest income, etc., is already pre-filled. However, the prefilled data must be imported into the JSON utility if you are using the partially connected and partially offline method.
Documents required to file ITR-2
According to the FAQ on the Income Tax Department’s website, here are 10 documents you need to file an ITR-2 tax return.
- If you receive a salary, you must have a Form 16 from your company.
- You need withholding tax certificates, ie a withholding form 16A, if the withholding tax is deducted from the interest earned on fixed deposits or savings accounts.
- To confirm withholding tax on salary and non-salary payable taxes, you will need Form 26AS. You can download Form 26AS from the filing website.
- Rent-paid receipts are required if you are renting your home for your HRA (if you haven’t submitted to your employer).
- You will need a summary or profit/loss statement of any capital gain transactions you have had with stocks or other securities over the course of the year, if any, in order to calculate your capital gain if you have any capital gain transactions.
- To find out how much interest you’ll earn, you need your bank’s ledger and fixed deposit receipts (FDRs).
- If your rental home has saved you money, you’ll need to know your tenant’s rent payments, pay local taxes, and interest on borrowed capital (if any).
- You will need the necessary documents to prove the loss if you want to claim any losses you have suffered this year.
- A copy of your ITR-V from the previous year, which discloses the loss, is required if you want to claim a loss from the previous year.
- If the same is not considered on your Form 16, you will also need documentation or evidence to claim tax savings deductions under Sections 80C, 80D, 80G, and 80GG, such as life and health insurance receipts, donations, rent, and tuition fees , among other things.