In order to ensure ease of Income Tax Return filing and better tax compliance, the Income Tax Department provides different ITR forms to different taxpayers on the basis of total income, the source of income, resident status and other key factors. ITR Form 2 is required to be filed by such individuals/HUFs who does not derive any income from a business or profession.
Who can file IT Return using ITR Form 2?
If a taxpayer does not derive any income under the head “Profits and Gains from Business and Profession”, he is required to file Download ITR Form 2. Therefore, a taxpayer having income from any of the following sources during the assessment year is eligible to file ITR Form 2:
- Income From Salary/Pension
- Income From Foreign Assets
- Income From House Property
- Income From Capital Gains (Both Long and Short Term)
- Agricultural Income of more than Rs.5000
- Income from other sources such as such as winnings from lottery or other legal gambling, etc.
- If the residential status of the individual/HUF is either Resident Non-Ordinarily Resident (RNOR) and Non-Resident
Also Read: How to File IT Returns Online?
Who can not file ITR Form 2?
- Any individual or HUF having income from business or profession.
- Individuals who are not eligible to file ITR through ITR Form 1
How to file ITR Form 2 Online?
Every taxpayer who is eligible to file ITR Form 2 can submit it online on e-filing portal of Income Tax Department. ITR can be filed electronically using the digital signature. However, it is not mandatory to file ITR Form 2 online using digital signatures only. The assessee can e-verify the ITR using aadhaar, through Electronic Verification Code(EVC) or through net banking if the PAN card is linked to the bank account.
Also Read: How to e-verify ITR using Aadhaar?
Can a taxpayer file ITR Form 2 offline?
Taxpayers falling in any of the following categories are only eligible to pay ITR Form 2 offline:
- Individuals who are of the age of 80 years or more.
- Individuals having net taxable income of not more than Rs. 5 lakh and who do not need to claim a tax refund in the return.
Returns can be filed by such individuals in offline mode by furnishing the return in physical form to the Income Tax Department. The department will issue an acknowledgement receipt after submission of the filled out ITR 2 form.
Major Changes Introduced in ITR Form 2 for AY 2018-19
The Central Board of Direct Taxes (CBDT) has notified new ITR Forms from the assessment year 2018-19. Some of the changes that have been introduced to ITR Form 2 are mentioned below:
- ITR Form 2 has been made applicable for individuals belonging to Resident Non-Ordinary Residents and Non Resident categories.
- The field of “Profits and Gains from Business and Profession” which were earlier featuring under Part B-TI has been now removed from the new ITR 2 form.
- Also, Schedule-IF (Income From Firm) and Schedule-BP have been removed. This means that any income earned from a partnership firm has to be filed through ITR Form 3 only.
- Under the TDS Schedule of Form 2, an additional field for furnishing details on TDS deducted on rent income (Form 26QS) has been added. It also demands to mention PAN of the tenant.