Filing an Income Tax Return (ITR) is essential for individuals to report their income and taxes to the Income Tax Department. The Income Tax Act of 1961 specifies the different forms and procedures for ITR filing. Among these, the ITR 2 form is specifically designed for individuals and Hindu Undivided Families (HUFs) who do not generate income from business or professional activities. This form is primarily used by individuals with income from salary, house property, capital gains, or other non-business sources.

At Tax MSME, we make the process of filing ITR 2 simple and efficient, ensuring compliance with all tax regulations. Whether you're a director of a private limited company or an individual shareholder, our expert team helps you navigate the complexities of tax filing, providing reliable assistance to make sure your taxes are filed accurately and on time.

What is ITR 2?

In India, taxpayers are categorized based on their income sources, and specific ITR forms are designated for each category. The ITR 2 form is for individuals and Hindu Undivided Families (HUFs) who earn income from sources like:

• Salary or Pension

• House Property (including multiple properties)

• Capital Gains (from the sale of assets like property or investments)

• Income from Other Sources (such as lottery winnings or income from gambling)

• Agricultural Income (over Rs 5,000)

• Foreign Income and Foreign Assets

• If you hold a position as a director in any company (listed or unlisted)

At Tax MSME, we assist you in filling out the ITR 2 form, ensuring all your income sources are accurately declared to avoid legal complications or penalties.

Eligibility for Filing ITR 2

The ITR 2 form is applicable for individuals or HUFs who receive income from:

• Salary, pension, or house property

• Capital gains, including short-term and long-term gains/losses

• Other sources of income like winnings from lotteries, gambling, etc.

• Foreign income and assets

• Directors of companies (both listed and unlisted)

You are not eligible to file ITR 2 if:

• Your income is from business or professional activities. In such cases, you must file ITR 3.

• You are eligible for filing ITR 1 (Sahaj) if your income is solely from salary/pension and other simple sources.

Structure of the ITR 2 Form

The ITR 2 form is structured into two primary sections:

• Part A: Includes general personal details like your name, address, PAN, Aadhaar number, and contact details.

• Part B: Calculates your total income and determines your tax liability based on your earnings.

Key Sections in Part B:

• B-TI – Computation of Total Income: This section calculates your gross income from various sources and applies eligible deductions.

• B-TTI – Computation of Tax Liability: Based on your total income, your tax liability is determined.

Documents Required for Filing ITR 2

Though the ITR 2 form does not require you to attach documents during submission, it is crucial to have the following documents ready for a smooth filing process:

• Form 16/16A: Salary income details and TDS (Tax Deducted at Source) certificates.

• Form 26AS/AIS/TIS: Tax credit details, TDS information, and other tax-related data.

• Bank Statements: Reflecting interest income, dividends, or other financial transactions.

• Capital Gains Statements: For individuals with income from the sale of assets like property or stocks.

• Foreign Assets and Income: Documentation for any foreign assets or income earned from abroad.

• Identification and Contact Information: Aadhaar card, PAN card, and your contact details for filing purposes.

ITR 2 Filing Process

Here’s how to file your ITR 2 form:

1. Complete the Form: Fill out Part A (general details), then proceed to all applicable schedules and finally Part B-TI and B-TTI.

2. Mark Non-Applicable Sections: If certain schedules do not apply to your income situation, mark them as "NA" (Not Applicable).

3. Accurate Rounding: Round off all figures to the nearest rupee, except for total income and tax payable, which should be rounded off to the nearest ten rupees.

4. Verification: After filling out the form, verify your details before submitting. If you're filing online, ensure you verify your return using ITR-V.

Modes of Submission for ITR 2

There are two main ways to file the ITR 2 form:

1. Offline Filing: Available for individuals aged 80 years or older, where physical submission of the form is allowed.

2. Online Filing: Most individuals file ITR 2 online via the Income Tax Department's e-filing portal, either with or without a digital signature. If filing electronically, you will receive an acknowledgment via email.

Why Choose Tax MSME for ITR 2 Filing?

At Tax MSME, we ensure that your ITR 2 filing is accurate, timely, and fully compliant with the law. Here’s why you should trust us:

• Expert Guidance: Our experienced team of tax professionals provides personalized assistance throughout the filing process.

• Convenience: File your tax returns online, from the comfort of your home or office—no need to stand in long queues.

• Accuracy: We ensure that all details are correctly entered, reducing the risk of errors and future complications.

• Timely Filing: We prioritize timely submission, helping you avoid penalties or interest for late filing.

Get in touch with Tax MSME today for expert help in filing your ITR 2 and ensuring seamless tax compliance!