The income Tax Return or ITR filing deadline is just around the corner, taxpayers are becoming more active to file their returns. An essential step of this process is choosing the correct ITR form.
Out of a total of seven forms, the taxpayers have to choose the one that suits their income category and financial status. In this blog, we aim towards making you understand the process of filing ITR-2.
Who Should File ITR-2?
ITR-2 form is notified by the Income Tax Department for individuals and Hindu Undivided Families or HUFs not having income classified as ‘Profits and Gains of Business or Profession’.
In simple words, the ITR-2 form will be filed by you if you are generating income from employment, pension, property, capital gains, foreign assets or employment, agriculture of more than ₹5,000 or any other sources.
What are the Major Components of the ITR-2 Form?
- Basic Information: carries your basic details like name, Aadhaar number, address, and mobile number.
- Income Info: In this section of the ITR 2 form you are required to provide your income from any source like employment, pension, property, capital gains, or any other.
- Tax Details: this section comprises accurate details about Tax Deducted at Source or TDS from your income and paid taxes.
- Exemptions: any income that you are getting and is exempted from tax is mandated to be disclosed in this field.
Also read:Important Tax Reminder: Failure to Mention The Income In ITR Could Result In Rs 10 Lakh Penalty
Important Points to Note While Filing ITR-2
Keep the following points in your mind before filing ITR-2:
- Filing of ITR-2 is not applicable to firms, LLPs, companies, or individuals who have chosen the presumptive income scheme. It is crucial to keep this in mind to prevent any potential legal complications.
- In the event of changing jobs within a financial year, it is essential to report the salary details from each employer separately. This ensures that all sources of income are accurately recorded and accounted for.
- Mandatory disclosure of all bank accounts held in India during the previous year is required. This information aids the Income Tax Department in monitoring your financial transactions.