Income Tax Return - Form ITR-2
For Individuals/HUFs with Complex Income Structures (Non-Business Proprietors)
ITR-2 Overview
Individuals and Hindu Undivided Families who have their Income for the Financial Year through Salary or Pension, more than One House Property, Income from Capital Gains, Income from foreign assets/Income, Income from business or profession as a partner (not proprietor) and other sources including lottery, racehorses, legal gambling are eligible to file their IT Return using ITR-2. Individuals who are not eligible to file using ITR-1, because of their income exceeding ₹50 Lakhs are also eligible to file ITR-2.
Eligibility to File ITR-2
This form is filed by Individuals/HUFs having income from the following sources:
- Income from Salaries/Pension (including those exceeding ₹50 Lakhs).
- Income from More than One House Property.
- Income from Capital Gains (Long-term or Short-term).
- Income from Foreign Assets / Foreign Income.
- Income from Other Sources (e.g., Lottery, Racehorses, Legal Gambling).
- Income from business or profession as a Partner (not as a Proprietor).
- Agricultural Income in excess of ₹5,000.
- Taxpayers having a DIN or owning Private Limited Company shares.
Ineligibility to File ITR-2
ITR-2 cannot be filed by:
- Proprietors having income from a Business or Profession. (They must file ITR-3 or ITR-4).
- Entities such as LLP, Company, Society, Trust, or Partnership firms. (They must file ITR-5 or ITR-6).
- Individuals whose only income is up to ₹50 Lakhs from Salary, One House Property, and Other Sources (They are eligible for the simpler ITR-1).
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FAQ's on Income Tax Return - ITR 2
Your Questions Answered
Who is eligible to file ITR-2?
ITR-2 is filed by individuals or Hindu Undivided Families (HUFs) who do not have any income from "Profits and Gains of Business or Profession." It is generally used by those with income from sources such as salary, more than one house property, capital gains, foreign income/assets, or high total income (above Rs 50 lakh).
Who is NOT eligible to file ITR-2?
Individuals or HUFs who have any income from "Profits and Gains of Business or Profession" (for which they would use ITR-3 or ITR-4) are not eligible. It is also not required if the taxpayer is eligible and chooses to file the simpler ITR-1.
What are the common sources of income to be reported in ITR-2?
You must report income from Salary/Pension, Income from House Property (more than one house, or where ITR-1 rules are not met), Capital Gains (Short-term and Long-term), and Income from Other Sources (like interest, dividends, winnings from lottery, etc.).
What documents are required for filing ITR-2?
Key documents include Form 16 (for salary), Form 16A/Form 26AS (for TDS verification), Annual Information Statement (AIS) and Taxpayer Information Summary (TIS), bank statements, investment proofs for deductions, and capital gains statements (if applicable).
Is it mandatory to file ITR-2 if my total income exceeds a certain limit?
Yes, ITR-2 is mandatory for individuals whose total income (before certain deductions) exceeds Rs 50 lakh, provided they do not have business or professional income. The income structure dictates the form.
Do I need to report foreign assets and foreign income in ITR-2?
Yes. If you are a Resident Ordinary Resident (ROR) and hold any assets (including financial interest in any entity) located outside India or have signing authority in any account outside India, you must file ITR-2 and fill out the relevant schedules (like Schedule FA).
Can I claim carry forward and set-off of capital losses in ITR-2?
Yes, ITR-2 includes schedules (CYLA, BFLA, CFL) to allow taxpayers to set off current year losses and carry forward unabsorbed losses, such as capital losses, to future years.
How do I verify the ITR-2 form after filing it online?
After filing, the return must be verified. The recommended and easiest way is through e-Verification (e-Verify Now) using Aadhaar OTP, Net Banking, or a Bank Account EVC. Alternatively, you can send the signed printout of the ITR-V (Acknowledgement Form) to the CPC, Bengaluru.
