ITR-2 Form: Know How to File It Online

Salaried individuals are generally required to fill out the ITR-1 SAHAJ form when filing their income tax returns. However, if you do not meet certain criteria, you need to fill out the ITR-2 form when filing your return for a particular assessment year. 

In case your income constitutes capital gains and rent from more than one house property, you will be required to file ITR-2. In addition, Hindu Undivided Families (HUFs) are also required to carry out ITR-2 filing.  

As it requires you to provide more comprehensive details about your income, the ITR-2 form is considered more complex than ITR-1. Read on to learn what ITR-2 is and how you can file it online. 

Now that you have understood this form’s function and components, check your ITR-2 applicability before filing your returns. ITR2 filling is mandatory if you fulfil these eligibility criteria:

• If you have earned income from salary/pension, house property, capital gains, other sources, etc.

• If you have earned income from foreign assets

• Income from agriculture exceeding ₹5,000

• If you are a director of a company or you have invested in unlisted equity shares

• If your total income from the above sources exceeds ₹50 Lakhs

Here is a brief overview of changes introduced in ITR-2 for the period 2022-23.

• The term ‘accounting period’ has been changed to ‘calendar year ending as on 31st December 2021’ under the Schedule FA

• Under the Schedule CG, the indexed and acquisition cost need to be disclosed separately

• Year-wise improvement cost details of building or land to be mentioned under the CG Schedule

• Interest accrued on PF need to be reported under the Schedule OS

• A separate disclosure of dividend income is essential per the new amendment

• Taxpayer to select appropriate descriptions pertaining to different clauses for determining residential status

• Insertion of new ‘Schedule Tax Deferred on ESOP’

If you are wondering how to file ITR-2, you can do so using both online and offline modes. However, note that only resident individuals over 80 years of age can complete their ITR-2 filling offline. 

Here is how to file ITR-2 online:

• Open the e-filing portal of the Income Tax Department

• Log in to your account using your credentials and enter the captcha code 

• Select the ‘e-File’ option from the menu

• Navigate to the ‘Income Tax Return’ tab

• You will be directed to a new page where your PAN details will be auto filled

• Go through these details to make sure they are accurate

• Select the assessment year as well as ITR-2 as applicable form

• Choose ‘Original/Revised Return’ as your preference in the ‘Filing Type’ tab

• Hit the ‘Continue’ button to begin your ITR-2 filing

• Fill in all the mandatory and applicable fields of your ITR form

• Under the ‘Taxes Paid and Verification’ tab, choose the right verification option

• Click on the ‘Preview and Submit’ button to check the details you have entered in your ITR-2 form

• Hit the ‘Submit’ button to complete your ITR-2 filing

In conclusion, the ITR-2 form is applicable to resident taxpayers and HUFs not earning any income from any business or profession. You can file the ITR-2 form online on the e-filing portal of the Income Tax Department.