ITR 2 Form for Financial Year 2024-25 in

Introduction

To simplify compliance, the income tax department has classified taxpayers based on factors such as income level, sources of income, and more. As a result, individuals with various types of income need to download and complete different income tax return forms. For example, the ITR-2 form is intended for individuals and HUFs who do not have a business or profession. In this article, you will get complete detail related to ITR 2 filing in for FY 2024-25 & AY 2025-26.

What is ITR2?

ITR-2 is used by individuals and Hindu Undivided Families (HUFs) to file their income tax returns when they do not have income from business or profession. It is commonly filed by those earning income from sources such as salary, pension, capital gains, and other sources.

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

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 the 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?

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

• Any individual or HUF earning income from business or profession is eligible to file ITR 2.
• Individuals who qualify to file ITR-1 (Sahaj), are 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 of a company or units of an equity-oriented fund/business trust, on which STT (Securities Transaction Tax) has been paid.
• Schedule 115AD(1)(b)(iii) Proviso: For non-residents, income from the sale of equity shares of a company or units of an equity-oriented fund/business trust, on which STT has been paid.
• Schedule OS: Computation of income from other sources
• Schedule CYLA: Statement of income after adjusting current year’s losses
• Schedule BFLA: Statement of income after adjusting unabsorbed losses carried forward from previous years
• Schedule CFL: Statement of losses to be carried forward to future years
• Schedule VIA: Statement of deductions under Chapter VIA
• Schedule 80G: Statement of donations eligible for deduction under Section 80G
• Schedule 80GGA: Statement of donations for scientific research or rural development
• Schedule AMT: Computation of Alternate Minimum Tax under Section 115JC
• Schedule AMTC: Computation of tax credit under Section 115JD
• Schedule SPI: Statement of income arising to spouse, minor child, son’s wife, or any other person/association of persons to be included in the income of the assessee (in Schedules HP, CG, and OS)
• Schedule SI: Statement of income subject to special tax rates
• Schedule EI: Details of exempt income
• Schedule PTI: Pass-through income from business trust or investment fund as per Sections 115UA, 115UB
• Schedule FSI: Statement of income accruing or arising outside India
• Schedule TR: Details of taxes paid outside India
• Schedule FA: Details of foreign assets and income from sources outside India
• Schedule 5A: Statement of income apportionment between spouses governed by the Portuguese Civil Code
• Schedule AL: Asset and liability details at year-end (required if total income exceeds Rs 50 lakh)
• Schedule Tax Deferred on ESOP: Information on tax-deferred ESOPs received from eligible start-ups under Section 80-IAC
• Part B-TI: Computation of total income
• Part B-TTI: Computation of tax liability on total income
• Tax Payments: Details of advance tax and self-assessment tax payments
• Declaration by the taxpayer
• Tax Return Preparer Details: Information to be filled if a tax return preparer has prepared the return

Documents required to file ITR 2 in

Following are some documents required to file ITR 2:

1. If you receive a salary, you will need Form 16 issued by your employer.
2. 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.
3. 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.
4. If you live in a rented property, you should keep rent receipts for HRA calculation, unless these have already been submitted to your employer.
5. 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.
6. Bank passbooks and Fixed Deposit Receipts (FDRs) are needed to calculate interest income.
7. 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 house property.
8. To claim any loss incurred during the current year, you must provide supporting documents showing the loss.
9. 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.
10. 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?

ITR 2 (Income Tax Return) Filing is need to be completed on the Income Tax e-filing portal, follow these steps:

Step 1: Visit the Income Tax E-filing Portal:

Open a browser and go to the official Income Tax Department e-filing website https://www.incometax.gov.in/iec/foportal/

Step 2: Log in to Your Account:

• On the homepage, click on "Login Here" if you already have a registered account.
• Enter your User ID (PAN), Password, and Captcha.
• Click Login to access your account.

Step 3: Select the Relevant Assessment Year:

• Once logged in, go to the "e-File" tab in the top menu.
• Select "Income Tax Return" from the drop-down menu.
• A new page will open. Choose the Assessment Year for which you are filing the return. For instance, if you're filing for FY 2024-25, select Assessment Year 2025-26.

Step 4: Select the ITR Form:

• On the next page, you'll be asked to select the appropriate ITR form.
• Choose ITR-2 from the list of forms. This form is meant for individuals who have income from salary, property, capital gains, etc., but are not carrying out business or profession (in other words, not for those who need to file ITR-3).

Step 5: Choose the Mode of Filing:

1. You'll be prompted to choose the mode of filing. There are typically two options:
• Prepare and Submit Online: Recommended if you prefer to fill the form online.
• Upload XML: For those who have filled the form offline and want to upload it.
2. Select Prepare and Submit Online for filing directly on the portal.

Step 6: Fill in the Details:

The ITR-2 form will open. It consists of multiple sections where you'll need to fill in your income details, deductions, and other information.

• Personal Information: Fill in your name, PAN, date of birth, address, etc.
• Income Details: Include your income from salary, house property, capital gains, and other sources (like interest, etc.).
• Deductions: Enter the deductions under sections like 80C, 80D, etc.
• Tax Computation: The form will automatically compute your tax based on the details provided.
• Verification: Fill in the necessary details to verify your return, such as Aadhaar and bank account details.

Step 7: Verify and Submit:

• After filling in all the required sections, verify the information entered.
• Click on “Submit” to submit your return.

Step 8: E-Verify Your Return:

Once you have submitted the ITR-2 form, you will need to verify your return. There are several options for e-verification:

• Aadhaar OTP (if linked with PAN).
• Net Banking.
• EVC (Electronic Verification Code) sent to your email or mobile.
• Send a signed copy of ITR-V to the CPC Bangalore (if you cannot e-verify).

Choose your preferred method and complete the verification process.

Step 9: Acknowledgement and ITR-V:

• After successful submission and verification, you will receive an acknowledgement receipt (ITR-V) on your registered email.
• If you opted for physical verification, print the ITR-V, sign it, and send it to the Centralized Processing Center (CPC), Bangalore.

Step 10: Download and Keep Records:

• Download the ITR acknowledgement for your records. You can also download the ITR-V (if applicable) after submission.
• By following these steps, you will successfully file ITR-2 on the Income Tax e-filing portal.

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

The following changes have been incorporated in the ITR-2 form for FY 2023-24, which are also applicable for FY 2024-25:

• Schedule VDA: Income from Transfer of Virtual Digital Assets
  A new schedule has been introduced to calculate income from cryptocurrencies and other virtual digital assets.
• Relief u/s 89A: A new clause has been added to provide relief to residents with income from foreign retirement benefit accounts:
  • Point No. 1(e)4: Income taxable in the previous year on which relief under section 89A was claimed in any earlier year.
• Sec 10(12C): A new exemption has been introduced under Sec 10(12C) for payments from the Agniveer Corpus Fund to an individual enrolled in the Agnipath Scheme or their nominee.
• Schedule SI: A new point has been added under section 115BBH for income derived from the transfer of Virtual Digital Assets.
• Section 80 CCH: A new clause has been introduced under Chapter VI-A deductions, allowing the entire amount contributed by Central Government employees to the Agniveer Corpus Fund to be eligible for tax deductions.
• ARN: In Schedule 80G, Clause D now requires additional information related to the ARN (Donation Reference Number).

Why Bizfoc?

Bizfoc is one of the leading brands along with 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 each and every step related to your filings and new ITR updates.

Conclusion

Filing ITR-2 online for the Financial Year 2023-24 (Assessment Year 2024-25) in is a straightforward process that ensures you comply with income tax regulations and avoid penalties. By following the steps outlined on the Income Tax e-filing portal ranging from logging in to selecting the correct form, filling in the necessary details, and completing the e-verification—you can file your return with ease. It's essential to keep all required documents ready and ensure accurate information to avoid errors or discrepancies. With the convenience of online filing and multiple e-verification options, taxpayers can efficiently complete the ITR-2 submission from the comfort of their homes. Always remember to keep a copy of the filed return and acknowledgment for future reference.

Frequently Asked Questions