ITR 2 Form - Meaning, eligibility, due date, penalty and structure

Hello, in this post we will learn all about ITR 2 Form. We will cover the following topics.

What is ITR 2 Form?

The ITR 2 is a type of Income tax return or ITR form for Individuals and HUFs (Hindu Undivided family) who has no income from business or profession.

To whom is ITR-2 applicable?

ITR-2 is applicable for Individuals or HUFs who receive income from other than “Profits and Gains from Business or Occupation”. This return form will be applicable to you if you receive income from these following sources:

  • Income from Salary / Pension
  • House property (It can be from one or more house property)
  • Income from capital gains/ loss on sale of investments/property ( both short term and long term).
  • Income from other sources (like bets on horseraces, winning of lotteries and any legal methods of gambling).
  • Foreign Assets income
  • Agricultural income which exceeds Rs. 5000
  • Profit share of the partner from a partnership firm
  • Resident not ordinarily resident and a Non-resident

The Structure of ITR-2

Download the ITR-2 form here.

ITR-2 Form has the following components:

  • Part-A: General Information
  • Part B-TI: Computation of Total Income in respect of income chargeable to tax
  • Part B-TTI: Computation of tax liability on total income.
  • Details to be filled if the return has been prepared by a Tax Return Preparer (TRP)

This follows the below schedule:

  • Schedule-S: Details of income from head salaries
  • Schedule HP: Details of income from House Property
  • Schedule-IF: Details of the partnership firm in which you are a partner
  • Schedule-CG: Income under Capital gains
  • Schedule-OS: Computation of income under Income from other aspects
  • Schedule CYLA: Statement of income after set off of current year’s losses
  • Schedule-BFLA: 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: Deductions from total income under Chapter VIA
  • Schedule-80G: Statement of donations entitled for deduction u/s 80G
  • Schedule-SPI: Income arising to spouse/ minor child/ son’s wife or any other person or association of persons to include in the income of the assessee in Schedule – HP, CG, and OS
  • Schedule-SI: Statement of income which is chargeable to special tax rates
  • Schedule EI: Exempted Income details
  • Schedule PTI: Pass through income details from the business trust or investment fund as per Section 115UA, 115UB
  • Schedule-FSI: Statement of income accruing or arising outside India.
  • Schedule-TR: Taxes paid outside India information
  • Schedule FA: Foreign Assets and income details
  • 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 income exceeding Rs 50 lakhs)

How to fill ITR 2 Form?

  • If any schedule is not applicable to you while filling, strike it out and write — NA —
  • The same applies if any items are not applicable to you
  • Show nil figures by writing “Nil
  • Indicate negative figures with “-” sign
  • All figures are to be rounded off to the nearest one rupee except figures for total income/loss and tax payable. Those are to be rounded off to the nearest multiple of ten.
  • If you are an individual, under the Employer Category you need to tick Government, if you are a Central/State Government employee. You need to tick PSU if you are working in a public sector company of the Central/State Government.

The ITR-2 Form can also not be used if you are claiming double taxation relief u/s 90/90A/91.

The best sequence to fill out the ITR-2 form is:

  1. Firstly fill the Part -A i.e., the general information
  2. All the schedules
  3. Part B-TI and Part B- TTI
  4. Lastly, fill the verification part

ITR-2 filing

You can either file it online or offline. You can follow the step by step procedure to file your ITR in this blog.

ITR-2 due date

The due date for filing your return is 31st July every year.

Penalty for late filing of ITR

According to the new law, a penalty of Rs 5,000 will be levied if the return is filed after the due date but before December 31 of that year and Rs 10,000 after December 31. However, as a relief to small taxpayers, if your income is not more than Rs 5 lakh, the maximum penalty for late filing will be Rs 1,000.

Confused which ITR form to use? Read our blog

ITR 2 due date, penalty, applicability

Q) If my maximum exempted income is above Rs. 5000, then I should file ITR-2 and not ITR-1 of Income Tax. Can you explain what qualifies as exempt income?

A) Certain income is exempt under section 10 of the Income Tax Act.
As per Section 10 of the Income Tax Act, a certain income you have earned, which is excluded from income tax in a financial year, is exempt income. Exempt income includes–Allowances for example, HRA, LTA, transport allowance etc. Gratuity, leave encashment, pension is possible for an exemption under section 10.