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Income tax returns Form ITR 2

ITR-2 filing online step by step guide

Jun 10, 2022

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ITR Forms

The Income Tax department of India has simplified annual tax filing for its citizens by introducing various Income Tax forms to cater to citizens of all categories. There are 7 types of Income Tax Return Forms among them one is ITR-2 Form. 

The various aspects related to ITR-2 Form such as eligibility criteria, the form structure, and information with respect to its filing are discussed below.  

 

Eligibility Criteria to file ITR-2 Form 

This form is for individuals and Hindu Undivided Family (HUF) who are receiving income other than their business professional. The income criteria for eligibility to file ITR-2 Form are given below:

  1. Income from Salary or Pension
  2. Income from house property (more than one)
  3. Income from both short-term & long-term capital gain or loss on the sale of investment or property.
  4. Income from sources such as lottery, bets on Racehorses & gambling.
  5. Foreign assets or income
  6. Income from agriculture which is more than Rs. 5000
  7. And finally, residents are not ordinarily residents and a Non-resident

Who cannot file the ITR-2 Form for AY 2020-21 & AY 2021-22

  • Individuals who are eligible to file ITR 1 
  • Or, Individuals or Hindu Undivided Families who are having income from Businesses or another profession.

ITR-2 Form Filing mode

The form can be filled out online as well as offline. In case of offline mode, XML file needs to be uploaded or one can directly login to Income Tax portal & in submission modes “prepare and submit online”. And in the case of online filing latest data needs to be imported from ITR-2 Form or Form 26AS. 

Offline mode is specially made available for individuals who are 80 years and above.

Online Mode

  1. One has to fulfill all the details & electronically verify using EVC via their respective bank account / via net banking/ Demat account /Aadhar.
  2. Input all the details using an electronic medium and send a physical copy of ITR V to Centralized Processing Centre (CPC)
  3. Via carrying out via online mode, one will get a receipt in their registered email ID or one can manually download it from the Income Tax website.
  4. One has to sign the form and then send it to the Centralized Processing Centre (CPC)   

Off-line Mode

ITR 2 Form can be furnished in a physical paper form or by furnishing a bar-coded return. 

The Income Tax Department of India will issue an acknowledgment document during the time of submission of a physical paper return. 

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Major changes Introduced in ITR-2 Form in the financial year 2021-22 

  1. Due to flexibility in choosing between old & new tax regimes (which was introduced by the Finance Act 2020 under section 115 BAC), a special form, that is, Form 101E needs to be filled in case one is opting for a new tax regime.
  2. The Finance Act 2020 has allowed deferring the payment or deduction of tax on ESOPs which is covered under section 80-IAC. And the Part B of schedule TTI seeks to disclose this deferred tax if ever an employee received ESOPs from eligible start-ups.
  3. This act has shifted the tax liability from the company’s hand to the investors’ hand.
  4. New Sections such as10 (34), 10 (35), 115-O, 115-R, 115BBDA have been amended.
  5. A new row is added in Schedule OS which incorporates details of dividend income taxable in the hands of the unit holder of the business trust and allows deduction of expenses like interest from dividend income.
  6. All the ITR forms prompt the return filers and provide a quarterly breakup of the dividend income for Interest calculation under section 234C.
  7. The current ITR form include marginal relief by Surcharge Calculation
  8. Schedule DI is removed
  9. According to section 50C which determines the total value of sales consideration for land or building or both, it depicts that when the total value is less than stamp duty value, then stamp duty value is to regarded as the total value of sale after deduction of 5% of the total value.  It has been changed to 10% of the total value in the Finance Act 2020.
  10. Separate disclosure of cash donation under section 80GGA with date is required in the ITR form.
  11. Under schedules 112 A and 115 AD, the details of the nature of securities transferred have to be mentioned. The form is updated which incorporates a separate section for it. Details such as Sale Price, FMV, and COA of the securities have to be mentioned.
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    Overview of ITR-2 Form

    The ITR-2 Form is divided into 2 parts that are, Part A and Part B. The first part is about general information and the second part is about the computation of tax liability on the total income.

    The ITR-2 Form also has sections for different schedules, such as Schedule S (Salary Income details), Schedule HP (House Property details), Schedule CG (Capital Gain details), Schedule 112A, Schedule OS, Schedule CYLA, Schedule BFLA, Schedule CFL, Schedule VI-A, Schedule 80G, Schedule 80GGA, Schedule AMT, Schedule AMTC, Schedule SPI, Schedule EI, Schedule PTI, Schedule FSI, Schedule TR, Schedule FA, Schedule 5A, Schedule AL.

    • Name
    • Address
    • DOB
    • PAN number
    • Aadhar number
    • Contact Number
    • Email Address

    A1 – Filed u/s 139(1)-On or before the due date, 139(4)-After the due date, 139(5)-Revised Return, 92CD-Modified return, 119(2)(b)-after condonation of delay.

    Or

    Filed in response to notice u/s 139(9), 142(1), 148, 153A 153C

    A2- Are you opting for a new tax regime u/s 115BAC?

    • Yes
    • No

    B – Are you filing a return of income under the Seventh proviso to section 139(1) but otherwise not required to furnish a return of income? Yes or No

    • Bi- Have you deposited an amount or aggregate of amounts exceeding Rs. 1 Crore in one or more current accounts during the previous year? (Yes/No)
    • Bii- Have you incurred expenditure of an amount or aggregate of the amount exceeding Rs. 2 lakhs for travel to a foreign country for yourself or for any other person? (Yes/No)
    • Biii- Have you incurred expenditure of amount or aggregate of the amount exceeding Rs. 1 lakh on the consumption of electricity during the previous year? (Yes/No)

    C – If Revised/Defective/Modified, then enter Receipt No. and Date of filing the original return (DD/MM/YYYY)

    D – If filed, in response to a notice u/s 139(9)/142(1)/148/153A/153C or order u/s 119(2)(b) enter Unique Number/ Document Identification Number (DIN) and date of such Notice/Order, or if filed u/s 92CD, enter the date of Advance Pricing Agreement

    E – Residential Status in India or Residential Status in India (for HUF)

    F – Do you want to claim the benefit under section 115H?

    G- Are you governed by the Portuguese Civil Code as per section 5A?

    H – Whether this return is being filed by a Representative Assess?

    • Name of the representative
    • The capacity of the Representative (drop down to be provided)
    • Address of the representative
    • Permanent Account Number (PAN) of the representative

    I – Whether you were Director in a company at any time during the previous year?

    J – Whether you have held unlisted equity shares at any time during the previous year?

    Some of the general information which is put up are Name, Address, Date of Birth, PAN Number, Aadhar Number, Contact Number, and Email Address. Along with it some of the questions which are asked are have to be filled by an individual.

    As there are many Schedule which is listed. One has to put up all the correct & updated information. Some of the snaps of schedules in the form are below:

    • Name of Employer
    • Nature of Employer
    • TAN of Employer
    • Address of employer
    • Town/City, State, PIN Code
    • Gross Salary (1a + 1b + 1c)
    • Total Gross Salary
    • Allowances not exempt
    • Net Salary (2-3)
    • Deduction u/s 16 (5a + 5b + 5c)
    • Income chargeable under the head Salaries‘ (4 – 5)

    House Property

    • Address of property 1:
      • a – Gross rent received or receivable or lettable value
      • b – The amount of rent that cannot be realized
      • c – Tax paid to local authorities
      • d – Total (1b + 1c)
      • e – Annual value (1a – 1d)
      • f – Annual value of the property owned (own percentage share x 1e)
      • g – 30% of 1f
      • h – Interest payable on borrowed capital
      • i – Total (1g + 1h)
      • j – Arrears/Unrealised rent received during the year less than 30%
      • k – Income from house property 1 (1f – 1i + 1j)
    • Address of property 2:
      • a – Gross rent received/ receivable/ lettable value
      • b – The amount of rent that cannot be realized
      • c – Tax paid to local authorities
      • d – Total (2b + 2c)
      • e – Annual value (2a – 2d)
      • f – Annual value of the property owned (own percentage share x 2e)
      • g – 30% of 2f
      • h – Interest payable on borrowed capital
      • i – Total (2g + 2h)
      • j – Arrears/Unrealised rent received during the year less than 30%
      • k – Income from house property 2 (2f – 2i + 2j)
    • Pass-through income if any *
    • Income under the head “Income from house property” (1k + 2k + 3)

    Capital Gains

    The information regarding Capital gains is enclosed with the following details of the taxpayer to furnish with:

    A. Short-term Capital Gains (STCG)

    1. From the sale of land or building or both

    • a

    (I) Full value of the consideration received/receivable

    (ii) Value of the property as per stamp valuation authority

    (iii) Full value of consideration adopted as per section 50C for the purpose of Capital Gains [in case (aii) does not exceed 1.05 times (ai), take this figure as (ai)

    • b – Deductions under section 48

    (i) Cost of acquisition without indexation

    (ii) Cost of Improvement without indexation

    (iii) Expenditure wholly and exclusively in connection with the transfer

    (iv) Total (bi + bii + biii) biv

    • c – Balance (aiii – biv)
    • d – Deduction under section 54B (Specify details in item D below)
    • e – Short-term Capital Gains on Immovable property (1c – 1d)
    • f – In case of transfer of immovable property, please furnish the following details (see note)

    2. From the sale of equity share or unit of an equity-oriented Mutual Fund (MF) or unit of a business trust on which STT is paid under section 111A or 115AD(1)(ii) proviso (for FII)
    3. For NON-RESIDENT not being an FII- from the sale of shares or debentures of an Indian company (to be computed with foreign exchange adjustment under the first proviso to section 48)
    4. For NON-RESIDENT- from the sale of securities (other than those at A2) by an FII as per section 115AD
    5. From the sale of assets other than at A1 or A2 or A3 or A4 above
    6. Amount deemed to be short term capital gains
    7. Pass-Through Income in the nature of Short Term Capital Gain
    8. Amount of STCG included in A1 – A7 but not chargeable to tax or chargeable at special rates in India as per DTAA
    9. 9 Total Short-term Capital Gain (A1e+ A2e+ A3a+ A3b+ A4e+ A5e+A6 + A7 – A8a) A9

    Income from other sources: The information regarding income from other sources is enclosed:

      • Gross income chargeable to tax at normal applicable rates (1a+ 1b+ 1c+ 1d + 1e)
      • Income chargeable at special rates (2a+ 2b+ 2c+ 2d + 2e)
      • Deductions under section 57
      • Amounts not deductible u/s 58
      • Profits chargeable to tax u/s 59
      • Net Income from other sources chargeable at normal applicable rates
      • Income from other sources (other than from owning racehorses)
      • Income from the activity of owning and maintaining racehorses
      • Income under the head “Income from other sources” (7 + 8e)
      • Information about accrual/receipt of income from Other Sources
    ITR 2 is for whom

    Schedule CYLA

    • Head/ Source of Income
    • Income of the current year
    • House property loss of the current year set off
    • Other sources of loss (other than the loss from racehorses) of the current year set off
    • Current year’s Income remaining after setting off

    Schedule BFLA

    • Head/ Source of Income
    • Income after set off, if any, of current year’s losses as per 4 of Schedule CYLA)
    • Brought forward loss set off
    • Current year’s income remaining after setting off

    Schedule CFL

    • Assessment Year
    • Date of Filing
    • House property loss
    • Short-term capital loss
    • Long-term Capital loss
    • Loss from owning and maintaining racehorses

    Schedule 80G

    • Donations entitled to 100% deduction without qualifying limit
    • Donations entitled to 50% deduction without qualifying limit
    • Donations entitled to 100% deduction subject to qualifying limit
    • Donations entitled to 50% deduction subject to qualifying limit
    • Total donations

    Schedule 80GGA

    • R Details of donations for scientific research or rural development relevant clause under which deduction is
    • Claimed Name and address of the donee
    • PAN of Donee
    • Amount of donation
    • Eligible Amount of donation

    Schedule AMT

    • Total Income as per item 12 of PART-B-TI
    • Adjustment as per section 115JC(2)
    • Adjusted Total Income under section 115JC(1) (1+2a)
    • Tax payable under section 115JC [18.5% of (3)] (if 3 is greater than Rs. 20 lakhs)

    Schedule SPI

    • Name of person
    • PAN of the person (optional)
    • Relationship
    • Amount
    • Head of Income which included

    Schedule SI

    111- The accumulated balance of recognized provident for prior years
    111A or section 115AD(1)(b)(ii)- Proviso (STCG on shares units on which STT paid)
    115AD (STCG for FIIs on securities where STT is not paid)
    112 proviso (LTCG on listed securities/ units without indexation)
    112(1)(c)(iii) (LTCG for non-resident on unlisted securities)
    115AC (LTCG for non-resident on bonds/GDR)
    115ACA (LTCG for an employee of a specified company on GDR)
    115AD (LTCG for FIIs on securities)
    115E (LTCG for non-resident Indian on specified asset)
    112 (LTCG on others)
    112A or section 115AD(1)(b)(iii)-Proviso (LTCG on sale of shares or units on which STT is paid) 10 (part of 3vi of schedule BFLA)
    STCG Chargeable at special rates in India as per DTAA
    LTCG Chargeable at special rates in India as per DTAA
    115BB (Winnings from lotteries, puzzles, races, games, etc.)
    115BBE (Income under section 68, 69, 69A, 69B, 69C or 69D)
    115BBF (Tax on income from the patent)
    115BBG (Tax on income from transfer of carbon credits)
    Any other income chargeable at a special rate (Drop down to be provided in filing utility)
     Another source of income is chargeable at special rates in India as per DTAA
    Pass-Through Income in the nature of Short Term Capital Gain chargeable @ 15%
    Pass-Through Income in the nature of Short Term Capital Gain chargeable @ 30%
    Pass-Through Income in the nature of Long Term Capital Gain chargeable @ 10% u/s 112A
    Pass-Through Income in the nature of Long Term Capital Gain chargeable @ 10%- under sections other than u/s 112A
    Pass-Through Income in the nature of Long Term Capital Gain chargeable @ 20%
    Pass-through income in the nature of income from another source chargeable at special rates (Drop down to be provided in e-filing utility)

    Schedule EI

    Details of Exempt Income (Income not to be included in Total Income or not chargeable to tax)

    • 1 Interest income
    • 2
      • Gross Agricultural receipts (other than income to be excluded under rules 7A, 7B, or 8 of I.T. Rules)
      • Expenditure incurred on agriculture ii
      • Unabsorbed agricultural loss of previous eight assessment years iii
      • Net Agricultural income for the year (i – ii – iii) (enter nil if loss) 3
      • In case the net agricultural income for the year exceeds Rs.5 lakh, please furnish the following details (Fill up details separately for each agricultural land)
        •  a Name of the district along with pin code in which agricultural land is located
        • b Measurement of agricultural land in Acre
        • c Whether the agricultural land is owned or held on the lease (drop down to be provided)
        • d Whether the agricultural land is irrigated or rain-fed (drop down to be provided)
    • 3 Other exempt income (including exempt income of minor child)
    • 4 Income not chargeable to tax as per DTAA
      • Sl. No. Amount of income
      • Nature of income
      • Country name & Code
      • Article of DTAA
      • Head of Income
      • Whether TRC obtained
      • (Y/N) I, II, III Total Income from DTAA not chargeable to tax
    • 5 Pass-through income not chargeable to tax (Schedule PTI)
    • 6 Total (1+2+3+4+5+6)

    Schedule PTI

    • Name of business trust/ investment fund
    • PAN of the business trust/ investment fund
    • Head of income
    • Amount of income
    • TDS on such amount, if any

    Schedule FSI

    • Country Code
    • Taxpayer Identification Number
    • Head of income
    • Income from outside India (included in PART B-TI)
    • Tax paid outside India
    • Tax payable on such income under normal provisions in India
    • Tax relief available in India (e)= (c) or (d) whichever is lower
    • The relevant article of DTAA if relief claimed u/s 90 or 90A

    Schedule TR

    • Summary of Tax relief claimed
    • Total Tax relief available in respect of country where DTAA is applicable (section 90/90A)
    • Total Tax relief available in respect of country where DTAA is not applicable (section 91)
    • Whether any tax paid outside India, on which tax relief was allowed in India, has been refunded/credited by the foreign tax authority during the year?

    Schedule FA

    • A1 Details of Foreign Depository Accounts held (including any beneficial interest) at any time during the relevant accounting period
    • A2 Details of Foreign Custodial Accounts held (including any beneficial interest) at any time during the relevant accounting period
    • A3 Details of Foreign Equity and Debt Interest held (including any beneficial interest) in any entity at any time during the relevant accounting period
    • A4 Details of Foreign Cash Value Insurance Contract or Annuity Contract held (including any beneficial interest) at any time during the relevant accounting period
    • B Details of Financial Interest in any Entity held
    • C Details of Immovable Property held
    • D Details of any other Capital Asset held
    • E Details of account(s) in which you have signing authority held (including any beneficial interest) at any time during the relevant accounting period and which has not been included in A to D above.
    • F Details of trusts, created under the laws of a country outside India, in which you are a trustee, beneficiary, or settlor
    • G Details of any other income derived from any source outside India which is not included in,- items A to F above and, (ii) income under the head business or profession

    Schedule 5A

    • Name of the spouse
    • PAN of the spouse
    • Heads of Income
    • Income received under the head
    • Amount apportioned in the hands of the spouse
    • Amount of TDS deducted on income at (ii)
    • TDS apportioned in the hands of the spouse

    Schedule AL

    • Details of immovable assets
    • Details of movable assets
    • Liabilities in relation to Assets at (A + B)

    Part B – TI     

    • Salaries
    • Income from house property
    • Capital gains
    • Income from other sources
    • Total of head wise income (1+2+3c+4d)
    • Losses of the current year set off against 5
    • Balance after set off current year losses (5-6)
    • Brought forward losses set off against 7
    • Gross Total income (7-8)
    • Income chargeable to tax at the special rate under sections 111A, 112, 112A, etc. included in 9
    • Deductions under Chapter VI-A
    • Total income (9-11)
    • Income which is included in 12 and chargeable to tax at special rates
    • Net agricultural income/ any other income for rate purpose
    • Aggregate income (12-13+14)
    • Losses of the current year to be carried forward
    • Deemed income under section 115JC

    Part B – TTI

    • Tax payable on deemed total income u/s 115JC
    • Tax payable on total income
    • Rebate under section 87A
    • Tax payable after rebate (2d-3)
    • Surcharge
    • Health and Education Cess @ 4% on (4 + 5iv)
    • Gross tax liability (4 + 5iv + 6)
    • Gross tax payable (higher of 1d and 7)
      • a) Tax on income without including income on perquisites referred in section 17(2)(vi) received from the employer, being an eligible start-up referred to in section 80-IAC ( Schedule Salary)
      • b) Tax-deferred – relatable to income on perquisites referred in section 17(2)(vi) received from the employer, being an eligible start-up referred to in section 80-IAC
    • Credit u/s 115JD of tax paid in earlier years
    • Tax payable after credit u/s 115JD (8a – 9)
    • Tax relief
    • Net tax liability (10 – 11d)
    • Interest and fee payable
    • Aggregate liability (12 + 13e)
    • Taxes Paid
    • The amount payable (Enter if 14is greater than 15e, else enter 0)
    • Refund
    • Details of all Bank Accounts held in India at any time during the previous year
    • Do you at any time during the previous year
      • (i) hold, as beneficial owner, beneficiary, or otherwise, any asset (including financial interest in any entity) located outside India; or
      • (ii) have signing authority in any account located outside India; or
      • (iii) have income from any source outside India?

    The Schedule S is for filling out detailed income from the salary. Similarly, the next schedule that is Schedule HP is about income from the house property and likewise the other is. Every schedule holds specific importance which is essential to be filled up by individuals.

    For the financial year, 2020-21 (AY 2021-22) the due date for filing ITR-2 Form is revised. For non-audit cases, on or before 31st July is the last date for filing.

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