The income tax department has recently made available the ITR 2 form for filing of income tax returns (ITR) for the financial year 2022-23 (assessment year 2023-24).
This form, known as ITR 2, is designed for individuals and Hindu undivided families (HUFs) who do not have income from profits and gains of business or profession. If you fall into this category, here’s what you need to know about ITR 2 and how to use it to file your income tax return.
WHO SHOULD USE ITR 2?
ITR 2 is applicable to individuals and HUFs, both residents and non-residents, who have the following types of income:
- Salary or Pension
- Income or loss from one or more house properties
- Income or loss under the head ‘capital gains’ (profits from the sale of assets like property, shares, or mutual funds)
- Income under the head ‘other sources’ (including income chargeable at special rates
It’s worth noting that the applicability of ITR forms may change over time. To ensure you are using the correct form for filing your ITR, it is advisable to refer to the latest guidelines provided by the income tax department or consult a tax professional.
DOCUMENTS REQUIRED FOR FILING ITR
When filing your ITR using ITR 2, you will need to gather certain documents.
Here’s a list of the essential documents:
Form 16: This is issued by your employer and contains details of your salary income.
Form 16A: If you have earned interest on fixed deposits or savings accounts and tax deducted at source (TDS) has been deducted, you will need this form issued by the deductor.
Form 26AS: This form allows you to verify TDS on salary as well as TDS other than salary. It can be downloaded from the e-filing portal.
Rent Receipts: If you live in a rented premises and want to claim house rent allowance (HRA), you will need rent receipts for calculating HRA.
UNDERSTANDING OTHER ITR FORMS
Apart from ITR 2, the income tax department has notified seven other forms for filing ITR. Here’s a brief overview of these forms:
ITR-1 Sahaj: This form is for individuals (resident) with total income up to Rs 50 lakh and having income from salaries, one house property, other sources (interest, etc.), and agricultural income up to Rs 5,000.
ITR-3: This is designed for individuals and HUFs having income from profits and gains of business or profession.
ITR-4 Sugam: This is applicable to individuals, HUFs, and firms (other than LLP) who are residents with total income up to Rs 50 lakh and income from business and profession computed under sections 44AD, 44ADA, or 44AE.
ITR-5: This is meant for persons other than individuals, HUFs, companies, and those filing Form ITR-7.
ITR-6: This is for companies other than those claiming exemption under section 11.
ITR-7: This is designed for persons, including companies, required to furnish returns under sections 139(4A), 139(4B), 139(4C), or 139(4D).
ITR-V: This is used when the data of the return of income in forms SAHAJ (ITR-1), ITR-2, ITR-3, SUGAM (ITR-4), ITR-5, or ITR-7 has been filed, but not verified electronically.
INCOME TAX RETURN DUE DATE
In most cases, the due date for filing income tax return is July 31. However, it’s always recommended to stay updated with the latest deadlines and any changes announced by the income tax department.
To ensure a smooth and accurate filing process, it’s advisable to seek guidance from a tax professional or refer to the official website of the income tax department for the most up-to-date information and instructions related to filing income tax returns.
Filing your ITR is an essential step for fulfilling your tax obligations and ensuring compliance with the law. By using the appropriate ITR form and submitting the necessary documents, you can effectively report your income and claim any applicable refunds or deductions.
