ITR 2 Form for Financial Year 2024-25 in Delhi

ITR 2 Form for Financial Year 2024-25 in Delhi

From the simplified compliance of the Income Tax Department, ITR-2 is a tax form filed by individuals and Hindu Undivided Families (HUFs) who meet certain eligibility criteria. ITR-2 is applied to the entity that doesn’t have a SAHAJ form and holds more than one house, capital gains, foreign income, and foreign assets and whose agricultural income is more than ₹5000. In this article, we will provide you with complete insights on how to file the ITR-2 filing for FY 2024-2025 and AY 2025-26.

What is ITR 2?

ITR-2 is a form used by individuals and HUFs to file the Income Tax return when they do not have income from business or profession. This form is commonly filed by those who do not have income from profit and gains from business or by any profession. If an individual has agricultural land and earns income above ₹5,000, then it is also required to file ITR-2.

Who can file ITR-2 for AY 2025-26 in Delhi?

ITR-2 form is meant for individuals and Hindu Undivided Families (HUFs) earning income from sources other than 'Profits and Gains from Business or Profession.' Those eligible to file ITR-2 include individuals with income from:

• Salary or pension
• House property (including income from multiple properties)
• Capital gains or losses from sale of investments or property (both short-term and long-term)
• Other sources (such as lottery winnings, racehorse betting, and other legal gambling activities)
• Agricultural income exceeding Rs. 5,000
• Residents who are not ordinarily residents and non-residents

The total income from these sources may exceed Rs 50 lakh. Additionally, if you are a director of a company or have investments in unlisted equity shares, you are also required to file ITR-2

Who is not eligible to file ITR-2 for AY 2025-26?

To file ITR 2 for AY 2025-26 in Delhi, one needs to follow certain eligibility criteria. This eligibility criteria includes the following:

• 1. Any individual or HUF earning income from sources other than 'Profits and Gains from Business or Profession.' is eligible to file ITR 2.
• 2. Individuals who qualify to file ITR-1 (SAHAJ) are not eligible to file ITR 2.

ITR 2 Format

ITR-2 is divided into the following sections:

• Part A: General Information
• Schedule S: Details of income from salaries
• Schedule HP: Details of income from house property
• Schedule CG: Computation of income under capital gains
• Schedule 112A: Income from the sale of equity shares or units of an equity-oriented fund (subject to STT)
• Schedule OS: Computation of income from other sources
• Schedules CYLA, BFLA, CFL: Statements related to current and carried forward losses
• Schedule VIA: Statement of deductions under Chapter VIA
• Additional schedules for donations, alternate minimum tax, and foreign assets
• Part B-TI and Part B-TTI: Computation of total income and tax liability
• Tax Payment details and Declarations
• Tax Return Preparer Details (if applicable)

Documents Required to file ITR-2 in Delhi

The following documents are required for filing ITR-2:

• If you receive a salary, you will need Form 16 issued by your employer.
• For interest income from fixed deposits or savings accounts where TDS has been deducted, you must obtain TDS certificates, i.e., Form 16A, from the deductors.
• You will also need Form 26AS to verify TDS on both salary and other income. This form can be downloaded from the e-filing portal.
• If you live in a rented property, you should keep rent receipts for HRA calculation, unless these have already been submitted to your employer.
• For capital gains from shares, you will need a summary or profit/loss statement detailing your capital gain transactions in shares or securities for the year.
• Bank passbooks and Fixed Deposit Receipts (FDRs) are needed to calculate interest income.
• If you receive rent from a property, ensure you have details such as tenant information, local tax payments, and interest on borrowed capital (if any) for calculating income from the house property.
• To claim any loss incurred during the current year, you must provide supporting documents showing the loss
• If you wish to carry forward a loss from the previous year, you'll need a copy of the ITR-V from the prior year showing the declared loss.
• Lastly, for claiming tax-saving deductions under sections 80C, 80D, 80G, and 80GG (such as insurance, donations, rent, or tuition fees), you will need receipts for the same, especially if these were not included in your Form 16

How can I file ITR-2 on the Income Tax Website/Portal?

Follow these steps to file ITR-2 online in Delhi:

• Step 1: Visit the Income Tax Portal: Access the portal at https://www.incometaxindiaefiling.gov.in/home.

• Step 2: Select Income Tax Preparation Utilities: Click on the Download Tab, then select “Offline Utilities” followed by the Income Tax Preparation Utilities.

• Step 3: Select Excel Utility under ITR-2: Choose the relevant Assessment Year and click on the Excel Utility under the ITR-2 column to manually fill out your details.

• Step 4: Download the File: Download the ITR-2 form file for the selected Assessment Year, fill in your details, and save the file.

Key Changes in ITR-2 for AY 2023-24 and AY 2024-25

The following changes have been incorporated in the ITR-2 form:

• The Finance Act 2023 has amended Section 115 BAC, making the new tax regime the default for individuals and HUFs. Assessees must opt out if they prefer the old tax regime.
• The rebate limit under Section 87A has been increased, allowing zero taxes for income up to Rs. 7 lakhs under the new regime.
• Schedules 80DD and 80U have been added for details regarding disability deductions, with mandatory filing of Form 10IA.
• Schedule 80GGC has been introduced for recording contributions to political parties.
• A LEI number is now required for payment transactions above ₹50 crore.

Why Bizfoc?

Bizfoc is one of the leading accounting firms and has a professional and experienced team in the field of ITR filing. We provide a seamless process for ITR filing to our clients. We make sure to file everything accurately and in a minimal time period. We guide you at every step related to your filings and new ITR updates.

Conclusion

By following the steps outlined on the Income Tax e-filing portal, you can obtain any kind of ITR form for filing, including ITR-2. This filing is only restricted to those who belong to individuals and HUFs. This form applies to the one who doesn’t have a SAHAJ form or earns on agricultural land more than ₹5,000 and holds more than one house, capital gains, foreign income, and foreign assets.

Frequently Asked Questions (FAQs)