A comprehensive guide to understand the ITR 2
Category: Income Tax, Posted on: 17/12/2021 , Posted By: Webtel
Visitor Count:124

What is ITR-02?

This ITR is for individuals and Hindu Undivided Family having source of income from salary/pension, multiple house properties, capital gains, other sources, foreign assets/income other than business income.

What is ITR-02?

Who is Eligible to File ITR-02 for AY 2021-22?

ITR 2 can be filed by the individuals or HUFs having income from the following sources:

  • Assessee having total income more than Rs. 50 Lakhs.

  • Taxpayers who earn agricultural income above Rs.5000/-.

  • Income from winning, lottery, gambling, horse race under the head- income from other sources.

  • Having both short-term or long-term capital gain /losses from the sale of property/investments/securities.

  • ITR 2 can also be filed by a Non-Resident or Not Ordinary Resident.

  • Income includes income from a foreign country.

  • Have any assets in a foreign country.

  • A director of any company and an individual holding unlisted equity shares of a company should file their returns in ITR-2.

Who cannot file ITR-02 for AY 2021-22?

  • ITR 2 cannot be filed by individuals or HUFs whose income includes income or profits from business or profession in the nature of interest or salary, bonus, commission.

  • It should not be filed by the taxpayers who are eligible to file ITR-1.

What documents are required to file ITR-02?

Following documents are required for successful filing of the ITR-2:

  • First thing, you will need to check your Annual Information Statement.

  • You will need Form-16 issued by your employer- in case of income from salary.

  • Form-16A (TDS Certificate) issued by TDS Deductor.

  • Form-26AS to verify TDS on salary as well as TDS other than salary. Form 26AS could be downloaded from the E-filing portal.

  • In case you have received rent from any rented house property then you will require amounts of municipal taxes paid, interest on borrowed capital if any and tenant details.

  • If you have any capital gain transaction then you will be required to see summary of profit or loss statement, for computation of capital gain.

  • For claiming tax-saving deduction under 80C, 80D, or 80G, such as donations, rent receipts, or health insurance expenditure, relevant documents need to be checked as proof of such expenditure made.

How to file ITR-02?

The taxpayers have been divided into different groups, based on their source of income and the limits. Accordingly, each taxpayer has to file the type of return that is applicable to them.

The user can file ITR in two ways:

  • Online mode through E filing portal.

  • Offline mode through offline utility.

Pre-requisites for filing ITR-2:

  • Registered user on E-filing portal with a valid username and password.

  • The status of the pan should be active.

  • ITR 2 has a number of sections that you need to fill before submitting the form, including Part- A general information and Part B- Total Income and a number of schedules- House property, capital gain, other sources, AMT, etc.

Steps To File ITR-02 In Online Mode:

  1. Login into the Income-tax portal, by filing the mandatory fields.

  2. Click on the File Now from the Dashboard.

  3. Select assessment year 2021-2022, Select mode of filing as online then proceed.

  4. Select the status that applies to you and then select ITR-2, if applicable to you.

  5. After reading the instructions, fill in all the applicable and mandatory fields.

  6. Review your pre-filled data and confirm at the end of each section.

  7. After reading the instructions, fill in all the applicable and mandatory fields, as Form ITR-2 has been divided into two parts. ITR-2 contains twenty two Schedules.

    The details of these parts and Schedule are as under:

    Part-A

    Schedule

    Meaning

    GEN

    General information related to Assessee

    Filing Status

    General Information

    Part-B (Schedule related to Computation)

    In ITR Form

    Meaning

    Schedule - S

    Salary Head Income

    Schedule - HP

    House Property Income

    Schedule - CG

    Capital Gain

    Schedule - OS

    Other Sources Income

    Schedule - CYLA

    Current Year Losses

    Schedule - BFLA

    Unabsorbed Brought Forward Losses

    Schedule - CFL

    Carry Forward Losses

    Schedule - VI A

    Deductions under Chapter-VI A

    Schedule - AMT

    Computation of Tax Credit

    Schedule - AMTC

    Computation of tax credit under section 115JD

    Schedule - SI

    Income which is chargeable to tax at Special Rates

    Schedule - FSI

    Details of Income from outside India

    Schedule - TR

    Tax relief claimed for taxes paid outside India

    Schedule - EI

    Exempted Income (Income not included in Total Income)

    Schedule - FA

    Foreign Assets income

    Schedule - IT

    Statement of Advance and self-Assessment Tax

    Schedule - TI

    Total Income

    Schedule - TTI

    Tax Liability on Total Income

    Schedule - 5A

    Statement of apportionment if Income between Spouses governed by Portuguese CIVIL CODE

    Schedule - AL

    Statement of your Assets and Liability at the end of the year. It is mandatory if your Total Income exceeds Rs. 50 lakhs.

  8. In case there is a tax liability, you will be shown a summary of your tax computation, you can either choose to pay now or pay later, whichever option is suitable.

  9. In case you are eligible for any refund, preview the page and proceed to submit.

  10. After the confirmation of each and every section, click on Proceed.

  11. Click on Preview Return option and then Proceed to Preview option.

  12. The taxpayer can choose any of the applicable verification options under the ‘taxes paid and verification tab’.

  13. To verify all the details entered, click on Preview and submit button.

  14. E-verification can be done by entering the AADHAR OTP when asked for.

  15. The AADHAR OTP has to be filled, otherwise, the ITR will be auto-submitted, which will have to be verified later under the ‘My Account section’ within 120 days.

  16. E-verify the details and click on Submit.

  17. You can view the uploaded ITR.

If you are using OFFLINE MODE UTILITY, then download to prefill the data and fill schedule as discussed above in the tables above for online mode. After filling in all respective information, generate a JSON file and upload it with the help of the utility.

Is there any easy way to file ITR-2?

No matter, however, complex the process is, Webtel Electrosoft always makes it easier. With Webtel's WEB-e-TAX you can now file ITR 2 in a much simple and time-saving manner. Webtel allows bulk upload of ITR and E-filing. It provides 100% data security with real-time monitoring.

Not only the filing part but also the calculation part is easy with Webtel. Calculation of HRA, NSC, rebate, total income, tax payable, with all the updates in the law, is an embedded feature in Webtel.

Also, while filing the return through the government portal or any other, the taxpayer may face an issue with the websites sometimes, the server is down, the upload and processing time can be slow. With Webtel all these problems are solved as it is quick and allows seamless flow of information from inception till the end of the process.

Apart from this, Webtel also provides unique facilities like effective and efficient data management systems, billing modules for professionals which can benefit the taxpayers in numerous ways and can also reduce the burden. To know more about its features and facilities do visit the website and schedule a demo. Or if you are an existing user of Webtel’s Income Tax filing solution, then click here to know the process of filing ITR-02 through Web-e-Tax.


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