This is the second article in the series of “which ITR to be filed?”. We will have a look at ITR 2 and try to give more smart pointers.
Who should file ITR 2?
- Individuals and Hindu undivided Family (HUF) having income under below heads of income
- Salary / Pension
- House Property (where the assessee holds more than one house property)
- Capital Gains (Short term and Capital gains)
- Other Sources (includes income from horse race winnings and lottery winnings)
2. ITR 2 can be filed where the assessee earns income through foreign assets (assets located outside India)
3. If the assessee earn beneficial interest from assets or bank accounts etc. located outside India, then ITR 2 should be filed
- ITR 2 can be filed by Not Ordinarily Resident (RNOR) and Non Resident (NR)
5. ITR 2 is to be filed if the assessee is Director in any listed or unlisted company
- If exempt income exceeds Rs. 5 lakhs then ITR 2 is to be filed
ITR 2 can be filed if the individual is eligible to and wishes to claim Relief under section 90 or 90A or 91
Who can not file ITR 2?
- Where the Individuals or HUF are earning income under the Head – income from Business or Profession
- Individuals who are eligible to file ITR 1
- Assessees who are partners in any partnership firm or Limited Liability partnership (LLP)
Points to be noted
- Where TDS under section 194IB is deducted on rent, ITR 2 requires mandatory disclosure for tentant’s PAN
- If the TDS is deducted under section 194I, the TAN of the tenant is mandatory
- ITR 2 has separate columns for disclosure of Capital Gains taxable under DTAA
- Schedule AMTC is dedicated schedule for reporting Alternate Minimum Tax and credit calculation and disclosure, if applicable
- Additional Disclosure required for agricultural income (if exceeds Rs. 5 lakhs) under Schedule EI (agriculture land details)
- If the Exempt income exceeds Rs.5000 , then the assessee shall file ITR 2 and Not ITR 1.