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ITR2 FOR FY 2023-24(AY2024-25)

Do you know ? There are 13 Tax rebates you can claim while submitting IT Returns under old tax regime , when when you have not even made any fresh investments .

DO YOU KNOW ? : Senior citizens can claim Tax Rebate under section 80D even without having paid health insurance premium .

For details of such rebates , CLICK HERE

ITR2 FOR FY 2023-24
ITR2 FOR FY 2023-24

WHO HAS TO FILE IT RETURNS ?

Every individual or Hindu Undivided Family ( HUF ) is obliged to submit Income Tax returns if they meet following criterion .

INCOME BASIS :


1. Income exceeding Rs 2,50,000 in case of individuals below 60 years
2. Income exceeding Rs 3,00,000 in case of individuals above 60 years and below 80 years
3. Income exceeding Rs 5,00,000 in case of individuals above 80 years

Note : Income means total income in the financial year 2023-24 before allowing deductions under chapter VI -A of Income tax act .

OTHER BASIS :


Further you have to submit your IT Return if you have

1. expended more than Rs. 2 lakh on foreign travel or
2. paid more than Rs. 1 lakh on electricity consumption in a year
3. deposited more than Rs. 1 crore in a current account in a year,
even if your income is less than the threshold limit .

Note : 1. If TDS / TCS has been collected from your account , you have to file your IT Returns to claim refund , even when you are not taxable for the year . If TDS or TCS collected is more than Rs 25,000 ( Rs 50,000 for the senior citizens ) , submission of IT Returns is mandatory .
2. If your income exceeds basic exemption limit , you have to submit your IT Returns even though you are not liable for any income tax . For example your income is below Rs 7.00 lakhs and you are not liable to pay tax on the basis of section 87A
3. You have filed your audit report , but not filed your IT Returns . You have to complete the process by filing the returns .
4. If you hold any asset outside India or beneficiary of any asset outside India or a signing authority for an account outside India , you have to submit IT Returns if you are a resident Indian .

ITR2 FORM IS FOR WHOM ? WHO CAN FILE ITR2 FOR AY 2024-25?

  • ITR2 is to be used by an individual or a Hindu Undivided Family (HUF) who is not
    eligible to file Form ITR-1 (Sahaj) and who is not having any income under the head “Profits or gains of
    business or profession”.


  • Who is not eligible to file ITR1 ? ITR1 cannot be used by an individual who –


• is a Resident Not Ordinarily Resident (RNOR), and Non-Resident Indian (NRI)
• has total income exceeding ₹ 50 lakh
• has agricultural income exceeding ₹ 5000/-
• has income from lottery, racehorses, legal gambling etc.
• has taxable capital gains (short term and long term)
• has invested in unlisted equity shares
• has income from business or profession
• is a Director in a company
• has tax deduction under section 194N of Income Tax Act
• has deferred income tax on ESOP received from employer being an eligible start-up
• owns and has income from more than one house property
• is not covered under the eligibility conditions for ITR-1
3. What are the types of income that shall not form part of ITR 1 form?

Following are the types of income that shall not form part of ITR 1 form:-

(a) Profits and gains from business and professions;
(b) Capital gains;
(c) Income from more than one house property;
(d) Income under the head other sources which is of following nature:-

  • winnings from lottery;

  • Activity of owning and maintaining race horses;

  • Income taxable at special rates under section 115BBDA or section 115BBE;

(e) Income to be apportioned in accordance with provisions of section 5A

WHO IS NOT ELIGIBLE TO SUBMIT ITR2?

This Return Form should not be used by an individual whose total income for the Assessment Year
2024-25 includes Income under the head “Profits or Gains of Business or Profession”.

HOW TO FILE ITR2 ON INCOME TAX E-FILING SITE ?

The general procedure for submitting on-line in the new website is explained below :
HOW TO FILE ON LINE ON INCOME TAX E-FILING WEBSITE ?

1. GO TO NEW INCOME TAX E-FILING WEBSITE


2. IF REGISTERED ALREADY , LOGIN USING YOUR PAN NUMBER AND PASSWORD ( OLD PASSWORD USED IN THE EARLIER SITE IS VALID HERE ALSO ) . OTHERWISE REGISTER WITH YOUR PAN NUMBER

3.
Link PAN and Aadhaar , if not already linked

4. Pre-validate at least one bank account and nominate it for refund (recommended)

5. Link your mobile number with Aadhaar / e-Filing portal / your bank / NSDL / CDSL (for e-Verification)

6. Income Tax forms would be prefilled by the Income Tax Department from the fy 2020-21 onwards . All you have to do is to verify the correctness of data before submitting . The form has 25 sections and you have to verify the data in each sections .

7.
You can file and submit your ITR through the following methods:

  • Online Mode – through e-Filing portal

  • Offline Mode – through Offline Utility



How to submit the IT returns on the e-filing website ?
a .
Log in to the e-Filing portal using your user ID ( PAN Number ) and password.

b. On your Dashboard, click e-File > Income Tax Returns > File Income Tax Return.

c. In the next screen , Select Assessment Year as 2024 – 25 and mode of filing as " on-line " and click Continue.


d.
To file a fresh Income Tax Return , click on " Start New Filing "

e. Select the status applicable as " Individual " and continue

f.
: You may may select ITR2 FORM , IF IT IS APPROPRIATE TO YOU . Proceed with ITR2

f. Once you have selected the ITR applicable to you, note the list of documents needed and click Let’s Get Started.

g. In the next screen , Select the checkboxes applicable to you and click Continue.

h. : Review your pre-filled data and edit it if necessary. Enter the remaining / additional data (if required). Click Confirm at the end of each section. There are 25 sections in the form ITR2 and details you may view in the next section .

i. Enter your income and deduction details in the different section. After completing and confirming all the sections of the form, click Proceed.

j. In case there is a tax liability , You will be shown a summary of your tax computation based on the details provided by you. If there is tax liability payable based on the computation, you get the Pay Now and Pay Later options at the bottom of the page.

​k.

  • It is recommended to use the Pay Now option. Carefully note the BSR Code and Challan Serial Number and enter them in the details of payment.

  • If you opt to Pay Later, you can make the payment after filing your Income Tax Return, but there is a risk of being considered as an assessee in default, and liability to pay interest on tax payable may arise.


l. Go and pay tax

m. After paying tax, click Preview Return. If there is no tax liability payable, or if there is a refund based on tax computation, you will be taken to the Preview and Submit Your Return page.

​n. On the Preview and Submit Your Return page, enter Place, select the declaration checkbox and click Proceed to Validation.

o. On the Complete your Verification page, select your preferred option of verifying immediately or later and click Continue.

p.

  • Refer to How to e-Verify user manual to learn more.

  • If you select Verify via ITR-V, you need to send a signed physical copy of your ITR-V to Centralized Processing Center, Income Tax Department, Bengaluru 560500 by normal / speed post within 120 days.

  • Please make sure you have pre-validated your bank account so that any refunds due maybe credited to your bank account.



q. Once you e-Verify your return, a success message is displayed along with the Transaction ID and Acknowledgment Number. You will also receive a confirmation message on your mobile number and email ID registered on the e-Filing portal.

DETAILS THAT ARE TO BE FILLED IN ITR2 FORMS :

The new ITR2 form for Fy 2023-24 ( ay 2024-25 ) has 25 sections in it . They are

​3.1 Part A General
3.2 Schedule Salary
3.3 Schedule House Property
3.4 Schedule Capital Gains
3.5 Schedule 112A and Schedule-115AD(1)(iii) proviso
3.6 Schedule Other Sources
3.7 Schedule CYLA
3.8 Schedule BFLA
3.9 Schedule CFL
3.10 Schedule VI-A
3.11 Schedule 80G and Schedule 80GGA
3.12 Schedule AMT
3.13 Schedule AMTC
3.14 Schedule SPI
3.15 Schedule SI
3.16 Schedule EI
3.17 Schedule PTI
3.18 Schedule FSI
3.19 Schedule TR
3.20 Schedule FA
3.21 Schedule 5A
3.22 Schedule AL
3.23 Part B – Total Income (TI)
3.24 Tax Paid
3.25 Part B-TTI

You may not need to fill all the schedules . Verify the schedules relevant to you .


1. VERIFY PERSONAL INFORMATION IN PART A GENERAL: This section will have following sub-sections :


1 Profile
2 Filing section
3. Are you opting for New or Old Regime ? ( Read below section carefully to note the implications of your answer )
4. Additional information
4. Bank Details

You need to verify the pre-filled data which is auto-filled from your e-Filing profile. You will not be able to edit some of your personal data directly in the form. However, you can make the necessary changes by going to your e-Filing profile. You can edit your contact details, filing type details and bank details in the form.

2. VERIFY YOUR SALARY DETAILS :

The details of your income like Gross salary , Perquisites . Profit in lieu of salary , standard deduction already reported by your employers ,would be pre-filled here from Form 26AS. You have to verify the correctness of the data . If there are errors , take up with your employer .

3. DETAILS OF HOUSE PROPERTIES :

It will have data on Rent received , housing tax paid , depreciation , interest payable on housing loan and it will show net housing income .

4. VERIFY CAPITAL GAINS :

It will have schedule 112A in which details of shares purchased and sold and schedule 115AD ( 1 ) ( III ) PROVISO for non-resident Indians

5. OTHER INCOME :

The schedule will have details of other income like interest received on savings bank account , Fixed deposits , income tax refund . income from other sources , income from horse races etc .

6. SCHEDULE CYLA :

It will have details of current year losses set off against current year income . For example salary received set off against loss from house property


7. SCHEDULE BFLA :

It will have details of Earlier year losses set off against current year income . For example Long term capital gain of the year set off against brought forward LTCAPITAL LOSSES .



8. SCHEDULE CFL:

It details the current year losses to be carried over to future years . For example long term losses incurred in share trading this year .

9. SCHEDULE VI-A

Part A you may add the deductions you are eligible under section 80 and Part b contains your eligible deductions under section 80D. Part C contains other eligible deductions like interest on savings bank account sec 80TTA and interest on bank deposuts exempted for senior citizens under sec 80TTB . Part D contains eligible amount SEC 80G .

10 . OTHER SCHEDULES :

Other schedules include Schedule AMT , AMTC , SPI , EI, PTI, FSI , TR , TA , AL and they all relate various details with regard to your various assets , additional information in special cases etc


11. VERIFY TAX COMPUTATION - PART B -TI :

The section will contain your total income tax liability as computed from the information available from earlier section . Verify each item , check for correctness . If found correct , confirm it

12. VERIFY TAX PAID :

Details of tax deducted at source , as reported in Form 26AS , would be shown here . Check all the taxes deducted by your employer or bank is properly credited to your account . if not take up with the concerned .

13. . VERIFY TAX PAYABLE :

In this part B - TT1 , DETAILS OF THE NET TAX PAYABLE BY YOU WILL BE SHOWN . AFTER TAKING IN TO ACCOUNT ALL DEDUCTIONS YOU ARE ELIGIBLE .



Once you confirm , you may submit the form by going to income tax returns > file income tax returns . Choose ay as 2022-23 and select filing type as on-line , select IT Form as ITR-2 . You will also get option to pay now or later for the net tax payable by you .

Then you may pre-view again before submitting the return . Once you submit , you may verify the return in the next screen .



CHOOSE BETWEEN OLD AND NEW TAX REGIMES :

While filing IT Returns , there is a question : Are you opting for new tax regime u/s 115BAC ?  Yes  No

Before filling just check which is beneficial for you old tax regime with rebates or new simplified system with lower tax rates and without any rebates . Before answering , check which is beneficial for you by going to our webpage and finding the answer yourself ​

SOME IMPORTANT POINTS TO BE NOTED WHILE FILLING ITR2

1. Name should be as per PAN card
​2. NATURE OF EMPLOYMENT :
Please tick the applicable check box-
(a) If you are a Central Government Employee, tick 'Central Govt'
(b) If you are a State Government Employee, tick 'State Govt'
(c) If you are an employee of Public Sector Enterprise (whether Central or State Government), tick 'Public
Sector Undertaking'
(d) If you are drawing pension, tick 'Pensioners'
(e) If you are an employee of Private Sector concern, tick 'Others'
(f) If you have income from Family Pension, etc., tick ‘Not applicable’

​3. List of types of salary payment :-
1. Basic Salary
2. Dearness Allowance (DA)
3. Conveyance Allowance
4. House Rent Allowance (HRA)
5. Leave Travel Allowance (LTA)
6. Children Education Allowance (CEA)

7. Other Allowance
8. The Contribution made by the employer towards pension scheme as referred under section 80CCD
9. Amount deemed to be income under rule 6 of Part-A of Fourth Schedule
10. Amount deemed to be income under rule 11(4) of Part-A of Fourth Schedule
11. Annuity or pension
12. Commuted Pension
13. Gratuity
14. Fees/ commission
15. Advance of salary
16. Leave Encashment
17. Others (please enter the details in the text box)

NO SCRIP-WISE REPORTING OF SHARES FOR SHORT TERM GAINS :

If you are submitting ITR2 , you may have capital gains on account of trading in shares . Income Tax Department has given clarification that One need not give details of share-wise purchase , sale and profits earned in Income tax returns by the tax payers . It will be sufficient to furnish total short term capital gain earned in the returns .

However for the long term capital gains made in the investments in shares where grandfathering is required to assess the taxable gain or loss , one has to provide scrip-wise details of such transactions .

With the above clarification , returns filing will be easier for those who have earned income by trading in stocks during the FY 2019-20 .

SHORT TERM CAPITAL GAIN : In respect of assets like shares (equity or preference) which are listed in a recognised stock exchange in India (listing of shares is not mandatory if transfer of such shares took place on or before July 10, 2014), units of equity oriented mutual funds, listed securities like debentures and Government securities, Units of UTI and Zero Coupon Bonds, the period of holding to be considered is 12 months for short term capital gain .

LONG TERM CAPITAL GAIN : In respect of above transactions , assets held for more than 12 months is considered for Long term Capital Gain .

What is Grandfathering ?

The concept of grandfathering was introduced in the budget of 2018-19 .

Long Term Capital Gain Tax on sale of equity shares and equity oriented mutual funds was introduced at 10 % , in the budget , for gains more than Rs 100,000 in the financial year . Further no indexation was allowed for calculating the gain . However gains earned up to January 31, 2018 was allowed to grandfathered . Grandfathering is allowing of existing benefits for the previous period . Hence Long Term Profits earned after February 1, 2018 will only be taxed if profits are booked in the financial year 2018-19 i.e from 01.04.2018 to 31.03.2019 . The higher of the purchase price of share or mutual fund or the price as on 31st Jan , 2018 for equity and NAV as on 31st , Jan 2018 will be taken as investment cost for arriving the long term gain . The concept has continued in the budget of Fy 2019-20 & Fy 2020-21 also .

WHY SCRIP-WISE REPORTING IS REQUIRED FOR LONG TERM CAPITAL GAINS ?

Without this reporting requirement, there may be situations where taxpayer may not claim or wrongly claim the benefit of grandfathering due to lack of understanding of the provisions. Also, if the calculation is not made scrip wise and taxpayer is allowed to enter the total figures only, there will be no way for the income tax authorities to check the correctness of the claim and therefore many returns will require to be audited, which may lead to unnecessary grievances/rectifications at a later stage. If scrip wise long-term gain is available, it can be cross verified by the Department electronically with stock exchange, brokerage companies, etc and there will be no need to subject these income tax returns to further audits or scrutiny

To read the Press Release dated 26.09.2020 , CLICK HERE

LONG TERM CAPITAL GAIN REPORTING IN ITR 2 :

Capital gains arising from sale/transfer of different types of capital assets have been segregated in the form ITR2 . Important points to be noted :

1. In a case where capital gains arises from sale or transfer of more than one capital asset, which are of same type, please make a consolidated computation of capital gains in respect of all such capital assets of same type except for following:

In case of long term capital gains (LTCG) arising on sale of equity shares in a company or unit of equity oriented fund or unit of business trust on which STT is paid, computation of capital gains should be made as per item No. B4 or item No. B7. Please note that separate computation of capital gains should be made for each scrip or units of mutual fund sold during the year as per Schedule 112A and 115AD(1)(b)(iii) proviso. The net capital gains arising on sale of individual scrips should be aggregated and will be auto populated to B4a and B7a of Schedule CG. Thereafter, tax shall be charged at a flat rate of 10% in Schedule SI on the aggregate LTCG, as reduced by Rupees One lakh, for the purpose of tax computation.

COST INDEXATION FOR LTCG :
For computing long-term capital gain, cost of acquisition and cost of improvement may be
indexed, if required, on the basis of following cost inflation index notified by the Central Government
for this purpose.
S. No. Financial Year Cost Inflation Index
1. 2001-02 100
2. 2002-03 105
3. 2003-04 109
4. 2004-05 113
5. 2005-06 117
6. 2006-07 122
7. 2007-08 129
8. 2008-09 137
9. 2009-10 148
10. 2010-11 167
11. 2011-12 184
12. 2012-13 200
13. 2013-14 220
14. 2014-15 240
15. 2015-16 254
16. 2016-17 264
17. 2017-18 272
18. 2018-19 280
19. 2019-20 289
20 2020-21 301
​21 2021-22 317


For detailed instructions on computing Capital gains , go to page no 11 of the instructions by clicking here

MATCHING OF FORM 26AS WITH YOUR IT RETURNS

It is important to match the information in Form 26AS with the information you provide in the Income tax returns as any mismatch may attract lengthy / unwanted correspondence with the income Tax department later . Now Income Tax department will assist you with pre-filled forms in their new e-filing portal . This will be backed with the information hey receive which will also reflect in Form 26as . Hence it becomes easier for you to match the information in your IT returns with that of Form 26as .

To know how to download Form 26AS in the new website , CLICK HERE