TR-2 form is for individuals and HUF receiving income other than income from ‘Profits and Gains from Business or Profession’
Following sources are eligible to file Form ITR-2
- Income from salary/pension.
- Income from house property (income can be from more than one house property)
- Income from capital gains/loss on sale of investments/property (both short term and long term)
- Income from other sources (including winning from lottery, bets on race horses and other legal means of gambling).
- Foreign income
- Agricultural income of more than Rs 5,000.
- Resident not ordinarily resident and a non-resident.
- The total income from the above sources may exceed Rs 50 lakh.
- Further, if you are a Director of any company and an individual invested in unlisted equity shares of a company, you must file returns in ITR-2.
Cannot file ITR-2
- Any individual or HUF having income from business or profession.
- Individuals who are eligible to fill out the ITR-1 form (Sahaj).
Detailed Structure of ITR 2
The ITR 2 Form is divided into 22 components which are named parts and schedules. A brief description of the structure of ITR form 2 is,
- Part A: This particular area is filled up with general information which needs to be correct and authentic.
- Part B-TI: This particular section is the total evaluation computation of overall income.
- Part B-TTI: This section provides the total computation of the tax liability that is applied over the total income.
- Schedule S: This is the structural detailing of the income from that of the overall salary.
- Schedule HP: Here, the initial HP stands for House property. Therefore, this section has the details of the House property.
- Schedule CG: this section evaluates the income from that of the total capital gains.
- Schedule OS: Reception follows in the detailing of the income from several other sources.
- Schedule CYLA: The detailing of the income based on the current year’s losses.
- Schedule BFLA: BFLA stands for brought forward losses of earlier years.
- Schedule CFL: This section basically consists of the details about the losses that are carried forward to that future years.
- Schedule VI-A: According to the section under Chapter VI-A, the deduction made are evaluated in this part.
- Schedule 80-G: It consists of the details of any donation that is made to be deducted under section 80-G.
- Schedule SPI: This has the additional income amount of any specific person.
- Schedule SI: These evaluate the incomes that are being charged at a special rate.
Schedule EI: The exempt income is evaluated in this section. - Schedule IT: Advanced tax, as well as the tax on the self-assessment, are evaluated and recorded in this statement.
- Schedule TDS1: All the deductions made in the tax at the source of the salary are detailed in this section.
- Schedule TDS2: This consists of the statement that records any other source of deduction other than that of the salary.
- Schedule FSI: Any tax relief, as well as income from outside of India, is recorded in this statement.
- Schedule TR: Any charged tax that is paid outside of India is considered under the summary of this section.
- Schedule FA: Any foreign assets, property or income claimed outside India is mentioned in this section.
- Schedule 5A: It consists of the information that is claimed by the Portuguese Civil Code for the apportionment of the income between the spouse.
Some Important FAQs
1: What is an income tax return form for ITR 2 Form?
Ans:
The ITR form 2 is basically meant for any individual who does not have a source of income from any kind of a business or a profession or owns any company. However, this form can be filled out by any individual who is a citizen of India or a non-Indian citizen.
2: What do you mean by income tax return?
Ans:
The income tax return is a form filled by any individual who has a certain source of income that falls under the terms and conditions of the tax payment provided by the income tax department. It is essential as well as necessary for every individual who has a decent source of income to pay their taxes, and these taxes are fixed upon the basis of their income and asset status. The income tax return form is categorised into 2 different groups. One of the important return forms is the ITR 2 Form which is necessary to be filled by any individual who has asserted a source of income.
3: What is the structure of the ITR 2 Form?
Ans:
The ITR form 2 is basically divided into 22 components which are named parts and schedules. Each of these sections has a detailed description of the source of income and different aspects of income, as well as summaries of house properties, assets or any apportionment of income.
4: Who is not eligible to file the ITR 2 Form?
Ans:
An individual who has a source of income through business or any kind of profession or is involved in any partnership with any firm is not eligible to fill the ITR form. Moreover, those who had eligibility for filling the ITR form 1 are also termed forbidden from filling the ITR form 2.
