Income Tax

How to file ITR-2 Online? | ITR Filing FY 2022-23 (AY 2023-24)

ITR-2 is a form that allows Individuals and HUFs to file their income tax return for the income that is not eligible for ITR-1 (SAHAJ),¹ such as foreign gains, agricultural income (more than INR 5,000), housing property of more than one and other sources.

Who file ITR-2?

ITR-2 Form for filing Income Tax Returns is for those individuals or HUFs who fall within a certain category, such as Individuals or HUFs who do not have income from profit or gains of business /profession. Also, those who do not have income from profits and gains of business or profession in the form of interest, salary, bonus, commission, or remuneration generated from a partnership firm, or income to be clubbed (income of another family member like a spouse or minor, etc.). or any of the following:

• An individual resident whose asset is located outside of India
• Non-resident of India or non-ordinary resident
• Taxpayers with agricultural income higher than INR 5,000
• Income generated from sources like lottery, gambling, horse race
• Short- or long-term gain/loss from the sale of property or assets

Who CANNOT file ITR-2?

Individuals or HUFs cannot file ITR-2 if their income for a financial year is generated from a profit or gains either from business or profession. Also, Individuals or HUFs whose income belongs to any of the following categories: interest, salary, bonus, commission, or remuneration, by whatever name called, due to, or received by him from a partnership firm.

How to File ITR-2?

If you want to file your ITR-2, here is the step-by-step guide for you:

Step 1: Visit the website for e-filing

Step 2: Log into your account using your PAN Details and Password

Step 3: Select the tab “e-file” and then select “Income Tax Return” to further select “File Income Tax Return.”

Step 4: Select the respective assessment year as well as the mode for filing (online)

Step 5: Proceed with the filing by checking on “Start New Filing”

Step 6:  Select the relevant status

Step 7: Select “ITR-2” in the drop-down menu for a form type

Step 8: Fill the required information along with bank account details

Step 9: verify the ITR. Print two copies of ITR-V for verification duly signed by you. You can retain one copy for a personal record, and another copy at the following address: Post Bag No. 1, Electronic City Office, Bengaluru–560100 (Karnataka).

When to file ITR-2?

Individuals or businesses who are filing Income Tax Return are required to file returns before the following due dates to avoid any legal repercussions:

• NON-AUDITED CASES: 31^st July of the respective assessment year [FY 2022-23 (AY 2023-24): 31^st July 2023]
• AUDITED CASES: 31^st October of the respective assessment year [FY 2022-23 (AY 2023-24): 31^st October 2023]

Delay in filing the ITR-2 as per the aforementioned dates can result in a penalty either in the form of Interest or a Fine only if you file the ITR-2 before 31^st December. Otherwise, another kind of penalty will be imposed on the defaulter.

Mistakes to avoid

• If you have switched jobs in FY 2022-23, it is necessary to report salary income from all employers in this schedule. You should obtain Form 16 from each employer to help you file ITR.
• For each employer, you need to provide the employer’s name, TAN if TDS is deducted, address, and nature of the employer.
• For reporting the salary income, provide an elaborative breakup of salary components and allowances, including basic salary and details about bonuses/perquisites.

Conclusion

Though ITR_1 has been the widely used form for certain categories of taxpayers, such as salaried individuals, it still excludes many other categories of taxpayers for minor reasons. Exceeding the upper limit of INR 50,00,000 or owning more than two housing properties can bring you out of the ITR-1 form benefits. To resolve all such queries, ITR-2 came into existence. However, ITR-2 cannot be used for income from businesses or professions. But if you are eligible for Form ITR-2, make sure you file the return using the respective form within the due date to avoid repercussions. Moreover, if you are unsure about your eligibility for the form ITR-2, you may select the form on the portal after checking all the details.

FAQs

1. https://www.incometax.gov.in/iec/foportal/help/how-to-file-itr1-form-sahaj