Income Tax

ITR-2A Tax Return Filing Guide: Eligibility, Benefits & Online Process

ITR-2A Form

ITR-2A is an extended form of ITR-2A, which allows the taxpayers eligible for ITR-1 not to file it merely because they owned more than one property but no capital gains as the income source. This reason made them file ITR-2, which was quite complex than that of ITR-2, compelling them to abide by the complex process. ITR-2A acts as a relief for Individual or HUF taxpayers with income less than INR 50,00,000 but owning more than one house.

Eligibility

Any Individual or HUF whose income is sourced from the following is eligible to file a return using ITR-2A

  1. Salaried,
  2. Housing Property,
  3. Other sources

Who is NOT eligible to file ITR-2A?

Any Individual or HUF whose income source falls in one of the following categories is not allowed to file a return using ITR-2A

  1. Income from Capital gains
  2. Income from business or profession
  3. Income from Claim or relied [under section 90, 90A, or 91]
  4. asset located outside India or signing authority located outside India
  5. income from sources outside India

Comparison among ITR-1, ITR-2, & ITR-2A

File ITR-1: If one of the incomes is sourced from salary, pension, or agricultural income less than INR 5,000, only one house property

File ITR-2: If income is sourced from salary, pension, agricultural income more than INR 5000, Capital Gains, Lottery, Gambling, interest, securities, stocks, and more than one housing property.

File ITR-2A: If Income is sourced from all those means included in ITR-1 and ITR-2 requirements, except by the means of Capital Gains.

READ  Sеction 9A of Income Tax Act, 1961

Documents to file ITR-2A

To file ITR-2A, the following documents would be needed:-

  1. Salaried income: Form 16 [issued by your employer]
  2. Interest on Fixed deposits or savings bank account: TDS certificates [if TDS has been deducted on the same], Form 16As [issued by deductors].
  3. TDS [salary or other than salary]: Form 26AS for verification [download from incometaxindiaefiling.gov.in.]
  4. If residing in rented premises: Rent paid receipts for HRA calculation (if no submission has been to the employer by the employee within time)
  5. To calculate Income Sourced from Interest: Passbook of Bank Account, receipts of Fixed Deposits.
  6. To claim loss [incurred during the current year]: Document showing the loss incurred.
  7. To claim loss [previous year’s]: Copy of ITR-V owing to previous year stating claimed loss.
  8. For Tax Exemptions and Deductions: Documents [life & health insurance receipts, donation receipts, rent receipts, receipts for tuition fees] for proving tax deductions under sections 80C1, 80d, 80G,80GG or more (if not added in Form 16)

Manner of furnishing ITR-2A

One can file the ITR-2A in the following manner:-

  1. Filing the return in a paper form
  2. Filing the return electronically under digital signature
  3. Filing the return by data transmission electronically using an Electronic Verification Code
  4. Filing the return by date transmission electronically and then verifying submission using form ITR-V

Note: Any taxpayer (other than an individual of the age of 80 years or more at any time during the previous year) with a refund claim or gross income higher than INR 5,00,000 will have to file the return in the manner prescribed under the aforementioned option (b), (c), or (d). For the return filed as per manner (b), the taxpayer shall print two copies of ITR-V for verification duly signed by the authorized person. The taxpayer can retain one copy for a personal record, and another copy shall be conventionally posted to the following address: Post Bag No. 1, Electronic City Office, Bengaluru–560100 (Karnataka).

READ  Section 30 of the Income Tax Act: Deductions for Rent, Rates, Taxes, Repairs, and Insurance

Structure: ITR-2A

ITR-2A is further divided into the following parts and schedules:-

Part-ACommon data requiring identificatory and additional data
Part-B-TICalculation of the entire income
Part B-TTIEstimation of tax liability on the complete income
Tax ReturnsDeclaration of payment of tax on self-assessment and advance tax, TDS on payrolls, and TDS on non-salary wages.
Schedule-SCalculation of income below the head payrolls or salaries.
Schedule-HPCalculation of income below the head Income from House Property.
Schedule-OSEstimation of income supporting the head Income from other causes.
Schedule-CYLADescription of interest after set-off for current year’s losses
Schedule-BFLAReport of income after set off of unabsorbed loss carried forward from previous years.
Schedule- CFLDeclaration of losses to be brought ahead to upcoming years.
Schedule-VIADescription of results (from total profit) below Chapter VIA.
Schedule 80GAssurance of contributions allowed for a deduction under Section 80G.
Schedule SPIDescription of income starting with spouse/ secondary child or son’s wife or any other individual or organization of persons to be involved in the interest of the assessee in Schedules-HP- HP, OS, and CG.
Schedule-SIDeclaration of assets which is liable to tax at specific rates
Schedule-EIReport of income not covered in total revenue
Schedule-5ADeclaration of apportionment of assets among spouses directed by the Portuguese Civil Code

Let’s learn to file ITR-2A

Step 1: Visit the website for e-filing and log into your account using PAN details.

Step 2: Go to the “e-file” tab to further select “Income Tax Return”. Then select “File Income Tax Return.”

Step 3: Select the relevant assessment year from the drop-down menu, select the mode for filing (online/offline), and then continue

READ  Sеction 44D of Income Tax Act, 1961

Step 4: In case of saved draft, select the concerned draft to proceed, or in case of new filing, select “start new filing.”

Step 5: Select the applicable status (Individuals/HUF/Others) and proceed

Step 6: Select the required form “ITR-2A” to proceed further

Step 7: Fill in the relevant details, inclusive of Income, Deductions, Tax, and others, and at last, furnish the return.

Step 8: In case of offline filing, 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).

Points to remember

  • Make sure your account is pre-validated and has been nominated for refund
  • Do not attach any other documents (including the TDS certificate) with the filed return. The enclosed documents will be detached and sent back to the filer if attached and filed.

Conclusion

Form ITR-2A was introduced as a bridge between ITR-1(SAHAJ) and ITR-2 for the taxpayers who majorly fall into ITR-1 eligibility, but a minor extension brings them under the eligibility of ITR-2, leading to a complex return furnishing process. ITR-2A allows all the taxpayers who are eligible for ITR-2 but do not have an income sourced from capital gains which fall within the eligibility of ITR-2A, which is similar to that of ITR-1. One can furnish the return offline and online following the instructions laid down by the Income Tax Department.

FAQs

  1. What is the difference between ITR 2 and ITR-2A?

    The major difference between ITR-2 and ITR-2A is that all the income sources eligible for ITR-2 are eligible for ITR-2A as well, except for those incomes sourced from Capital Gains.

  2. What is the difference between ITR 2 and 2A?

    The difference between ITR-2 and ITR-2A is that all the income sources eligible for ITR-2 are eligible for ITR-2A as well, except for those sourced from Capital Gains.

  3. What is ITR form 2A?

    The ITR-2 form is a bridge between ITR-1 and ITR-2 for such class of taxpayers who are eligible to file ITR-1 (SAHAJ) but hold one extra property or more, and then they can file ITR-2A. Moreover, those eligible for ITR-2 can file ITR-2A if they do not have income sourced from Capital Gain.

  4. What is the difference between ITR-1 and ITR-2A?

    ITR-1 is the form used by Individuals having their income sourced from salary, pension, one housing property, and agricultural Income lesser than Rs. 5000. Where this no. of housing property increases to two, or this agricultural income is more than 5000, then, ITR-2A is used. But in cases where income is sourced from Capital Gains, ITR-2A cannot be used.

  5. When should I file ITR-2A?

    You should file the ITR-2A before the 31st of July in case no audit is required, and in case of an audit, the ITR-2A should be filed no later than the 31st of October of the assessment year to avoid any penalties or fines.

  6. What are the documents required for filing ITR-2A?

    Form 16 [issued by your employer], Interest on Fixed deposits or saving bank account: TDS certificates [if TDS has been deducted on the same], Form 16As [issued by deductors], Form 26AS, Rent paid receipts for HRA calculation (if no submission has been to the employer by the employee within time), Passbook of Bank Account, Receipts of Fixed Deposits (if applicable), Document showing the loss incurred, Copy of ITR-V owing to previous year stating claimed loss (if applicable), life & health insurance receipts, donation receipts, rent receipts, receipts for tuition fees (for proving tax deductions).

References

  1. https://incometaxindia.gov.in/Pages/tools/deduction-under-section-80c.aspx

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