Income Tax Return (ITR) filing: ITR 2 form - Details of who can, who cannot and how to file this?

ITR Filing: The Income Tax Department has now opened the window for taxpayers, to file their ITR form 2 for the assessment year 2019-20. The department has already made filing of ITR form 1 and 4 available. Other forms such as ITR 3, ITR5, ITR6 and ITR7 will be allowed shortly. ITR form 2 is meant for those taxpayers who are individuals and Hindu Undivided Family (HUF) not carrying business or profession under any proprietorship. However, while filing ITR2 form, it needs to be noted that, the department has made various changes in this form. Hence, it is very important that you are aware of it. Let’s find out!

Changes!

Individuals and Hindu Undivided Families (HUFs) who do not have income from profits and gains from business or profession can file their returns with ITR-2 form. 

As per the newly notified ITR-2 form, taxpayers will be required to specify their residential status of the FY 2018-19. An individual can be considered as a resident, ordinary resident or non-resident in the financial year for income tax purposes. Detailed information regarding days present in India must be provided to satisfy residential status.

Additionally, in the column for 80G the amount must be segregated into cash and other modes of contribution.

Who can file ITR form 2?

Form ITR – 2 can be used by an individual and Hindu Undivided Family who is not eligible to file ITR-1 Sahaj and not having income from “profit and gains of business or profession” and also not having 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 firm.

Further, in case where the income of another person like spouse, minor child, etc., is to be clubbed with the income of the taxpayer, this Return Form can be used if income to be clubbed falls in any of the above categories.

Who cannot file ITR form 2?

Form ITR - 2 cannot be used by an individual and HUF whose total income for the year includes income from profit and gains from business or profession and also having income in the nature of interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from partnership firm. 

Here’s how you can file this form!

One can file ITR offline and online. However, you can eliminate the need to knock on the doors of Chartered Account or experts, the department makes it very easier and flexible their via e-filing portal.

To Upload ITR , follow the below steps:

Step 1 - Download the ITR preparation software for the relevant assessment year to your PC / Laptop from the "Downloads" page.

Step 2 - Prepare the Return using the downloaded Software.

Step 3 - Login to e-Filing website with User ID, Password, Date of Birth /Date of Incorporation and enter the Captcha code.

Step 4 - Go to e-File and click on "Upload Return".

Step 5 - Select the appropriate ITR, Assessment Year and XML file previously saved in Step 2 (using browse button).

Step 6 - Upload Digital Signature Certificate (DSC), if applicable.

Step 7 - Click on "Submit" button.

Step 8 - On successful submission, ITR-V would be displayed (if DSC is not used). Click on the link and download the ITR-V. ITR-V will also be sent to the registered email. If ITR is uploaded with DSC, the Return Filing process is complete. 

OR 

The return is not uploaded with DSC, the ITR-V Form should be printed, signed and submitted to CPC within 120 days from the date of e-Filing. The return will be processed only upon receipt of signed ITR-V. Please check your emails/SMS for reminders on .non-receipt of ITR-V.

To Prepare and Submit ITR Online, follow the below steps :

Step 1 - Login to e-Filing website with User ID, Password, Date of Birth /Date of Incorporation and Captcha.

Step 2 - Go to e-File and click on "Prepare and Submit ITR Online".

Step 3 - Select the Income Tax Return Form ITR 1/ITR 4S and the Assessment Year.

Step 4 - Fill in the details and click the "Submit" button.

Step 5 - Upload Digital Signature Certificate (DSC), if applicable.

Step 6 - Click on "Submit" button.