ITR 2 Form for Financial Year 2024-25 in

ITR 2 filing in

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 ITR2?

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 ?

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?

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

• Any individual or HUF earning income from sources other than 'Profits and Gains from Business or Profession.' is eligible to file ITR 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 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?

Step 1: Visit the Income Tax Portal:

For filing ITR-2, it is important to visit the income tax portal https://www.incometaxindiaefiling.gov.in/home.

Step 2: Select Income Tax Preparation Utilities:

On visiting the above link, you need to click on the Download Tab and select “Offline Utilities." The next step is to select the Income Tax Preparation Utilities.

Step 3: Select Excel Utility under the ITR-2 Column:

After clicking on the Income Tax Preparation Utilities, you need to select the relevant Assessment Year (the year in which any previous year's revenue is assessed to file the ITR). Then click on Excel Utility under ITR-2 Column if you want to fill in the details hand by hand.

Step 4: Download the File:

On following all the previous, you just need to download the file that reflects the ITR of the concerned Assessment Year.

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:

• The Finance Act 2023 has amended the provisions of Section 115BAC to make it the default tax regime for the assessee being an Individual and HUF. If an assessee does not want to pay tax according to the new tax regime, he will have to explicitly opt out of it and choose to be taxed under the old tax regime.


• For the new tax regime, the limit of rebate u/s 87A is increased. If your total income is up to Rs. 7 lakhs, rebate under 87A is allowed, and taxes will be zero. For income above Rs. 7 lakhs, then tax has to be paid according to the slab rate.


• Schedule 80DD and Schedule 80U are added to furnish details of disability claimed under respective sections along with Form 10-IA details. Please note that filing Form 10IA is mandatory to avail of deductions under these sections. It is advised to file Form 10IA before filing the ITR.


• Schedule 80GGC is added to furnish details of contributions made to a political party.


• The LEI system has been introduced for all payment transactions of value ₹50 crore and above undertaken by entities using Reserve Bank-run Centralized Payment Systems, viz., Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT). A LEI number has to be furnished for the cases where the refund claimed is more than ₹50 crores.

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