How to E-File ITR 2 when you have sold house property, land, or building

Last Updated at: March 11, 2020
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How to E-File ITR 2 when you have sold house property, land or building

The Indian Income Tax Department has various tax blocks, which categorizes individuals into various taxation segments based on their income, source, and other factors. This process makes it easy for the department to keep track of all the taxpayers and make sure they follow all the compliance measures. Therefore, different individuals have to find out in which category they belong, download the appropriate forms, and submit their IT returns. In this article, we will take a look at ITR-2, which deals with Hindu United Families and individuals who do not own any business of their own. Here’s a look at everything you need to know regarding the e-filing of ITR2.

  1. Who Should File ITR 2?

  2. What is the Structure of ITR filing 2?

  3. How to do Income tax return filing for ITR-2

  4. Major Changes in Income tax India e-filing

  5. Filling Form ITR-2

 

Who Should File ITR 2?

  1. It is primarily for Individuals or HUFs which receive money through means other than “Profits from Business”.
  2. Includes Income from salary or pension
  3. Rent of house property owned
  4. Short term and long-term capital gains
  5. Income from external sources such as lottery, bets and legal gambling
  6. Income from foreign sources
  7. Individuals who are residents and non-residents of India
  8. Also, directors of both listed and unlisted companies must file ITR2
  9. Meanwhile, Individuals and HUFs who have their own business, or individuals who are eligible to file ITR-1, must not file ITR-2

Click here to access the ITR 2 form.

File your income tax now

Click here to know the instructions to fill out the form ITR 2.

What is the Structure of ITR filing 2?

The ITR-2 form has two major parts:

  • Part A which contains the general information of the taxpayer
  • Part B-1 which handles the computation of the individual’s total taxable income
  • Part B-2 which deals with the taxation and amount to be paid
  • The rest of the minor sub-parts are as follows:
  • Schedule S which contains details regarding income from the salary of the individual
  • Schedule HP which handles income from properties
  • Schedule CG which deals with computing the income from capital gains
  • Schedule OS which computes income from other sources
  • Schedule CYLA which balances the year’s income and losses incurred
  • Schedule BFLA which declares the unabsorbed loss from previous years
  • Schedule CFL which deals with losses which will be carried forward
  • Schedule VIA contains all the deductions as per Chapter VIA
  • Schedule 80G handles all the donations made as per 80G
  • Schedule 80GGA contains information on donations made for scientific research/rural development
  • Schedule AMT computes the Alternate Minimum Tax payable as per Section 115JC and AMTC computes the required credit as per Section 115JD
  • Schedule SPI handles all the incomes which will be included along with the individual
  • Schedule SI contains details on income taxed at special rates
  • Schedule EI mentions the Exempt Income
  • Schedule PTI contains details of trust and investment funds
  • Schedule FSI handles foreign income
  • Schedule TR handles information regarding foreign taxes paid
  • Schedule FA declares Foreign Assets and income sources
  • Schedule 5A deals with the apportionment of income between spouses
  • Schedule AL handles the asset and liability if income exceeds Rs 50 lakhs

How to do Income tax return filing for ITR-2

Offline

Valid only if you are above the age of 80

A return may be filed either as a physical paper or via a bar-coded return format

Online

A return may be filed electronically after DSC authentication

A return may also be filed by data transmission, followed by verification via ITR-V

In the first case, acknowledgement is sent to the registered email ID, and the form may be downloaded via the official income tax web-portal. Once you have logged in online, copies must be taken of the form, it must be filled and signed and then sent to the CPC office in Bangalore before 120 days after filing. Since the ITR-2 is annexure-less, you do not have to attach any supporting documents.

Major Changes in Income tax India e-filing

1. Since ITR-1 does not apply to RNORs/NRIs, they must file ITR-2

  1. Clearer definition for who must apply or file ITR-2
  2. Residential status has been divided into Status for Individuals and Status for HUFs
  3. For individuals, it is further subdivided into Resident, not ordinarily resident and non-resident
  4. Furthermore, taxpayers also have to mention how long they stay in India
  5. NRIs must specify their TIN, while PIOs must mention the duration of their visit or stay in India
  6. Representative assesses must mention their capacity from the drop-down menu
  7. Individuals must clarify whether they hold Directorship in any company and also of their shareholdings
  8. Individuals must also provide information regarding their equities and shares
  9. Under the salary status, they must provide details regarding salary, the value of it, profits made and also gross salary if there is multiple employments or sources of income
  10. Senior citizens can now make use of the deduction as per Section 80TTB
  11. Donations have been split into various sections, as per the mode of payment and nature of the donation.
  12. Schedules AMT and AMTC have been newly introduced for computing alternate minimum tax
  13. Schedule EI will contain information regarding the nature of agricultural land, whether it is rented, leased or owned and also the type of irrigation used.

Filing Form ITR-2

  • In case of inapplicable schedules, strike across it and write -NA-
  • Do the same for sections or items as well
  • Indicate 0 with Nil
  • Always remember to put a – sign before negative figures
  • Round off to the nearest rupee for all decimal figures
  • In case of total income, round off to the nearest multiple of 10
  • Make sure you check the right category under Individual, such as Government, Private or PSU
  • Fill out in the following sequence: A>>Schedules>>B-1>>B-2>>Verify
  • It must be filed before 31st August in case you do not require an audit

 

0

How to E-File ITR 2 when you have sold house property, land, or building

172

The Indian Income Tax Department has various tax blocks, which categorizes individuals into various taxation segments based on their income, source, and other factors. This process makes it easy for the department to keep track of all the taxpayers and make sure they follow all the compliance measures. Therefore, different individuals have to find out in which category they belong, download the appropriate forms, and submit their IT returns. In this article, we will take a look at ITR-2, which deals with Hindu United Families and individuals who do not own any business of their own. Here’s a look at everything you need to know regarding the e-filing of ITR2.

  1. Who Should File ITR 2?

  2. What is the Structure of ITR filing 2?

  3. How to do Income tax return filing for ITR-2

  4. Major Changes in Income tax India e-filing

  5. Filling Form ITR-2

 

Who Should File ITR 2?

  1. It is primarily for Individuals or HUFs which receive money through means other than “Profits from Business”.
  2. Includes Income from salary or pension
  3. Rent of house property owned
  4. Short term and long-term capital gains
  5. Income from external sources such as lottery, bets and legal gambling
  6. Income from foreign sources
  7. Individuals who are residents and non-residents of India
  8. Also, directors of both listed and unlisted companies must file ITR2
  9. Meanwhile, Individuals and HUFs who have their own business, or individuals who are eligible to file ITR-1, must not file ITR-2

Click here to access the ITR 2 form.

File your income tax now

Click here to know the instructions to fill out the form ITR 2.

What is the Structure of ITR filing 2?

The ITR-2 form has two major parts:

  • Part A which contains the general information of the taxpayer
  • Part B-1 which handles the computation of the individual’s total taxable income
  • Part B-2 which deals with the taxation and amount to be paid
  • The rest of the minor sub-parts are as follows:
  • Schedule S which contains details regarding income from the salary of the individual
  • Schedule HP which handles income from properties
  • Schedule CG which deals with computing the income from capital gains
  • Schedule OS which computes income from other sources
  • Schedule CYLA which balances the year’s income and losses incurred
  • Schedule BFLA which declares the unabsorbed loss from previous years
  • Schedule CFL which deals with losses which will be carried forward
  • Schedule VIA contains all the deductions as per Chapter VIA
  • Schedule 80G handles all the donations made as per 80G
  • Schedule 80GGA contains information on donations made for scientific research/rural development
  • Schedule AMT computes the Alternate Minimum Tax payable as per Section 115JC and AMTC computes the required credit as per Section 115JD
  • Schedule SPI handles all the incomes which will be included along with the individual
  • Schedule SI contains details on income taxed at special rates
  • Schedule EI mentions the Exempt Income
  • Schedule PTI contains details of trust and investment funds
  • Schedule FSI handles foreign income
  • Schedule TR handles information regarding foreign taxes paid
  • Schedule FA declares Foreign Assets and income sources
  • Schedule 5A deals with the apportionment of income between spouses
  • Schedule AL handles the asset and liability if income exceeds Rs 50 lakhs

How to do Income tax return filing for ITR-2

Offline

Valid only if you are above the age of 80

A return may be filed either as a physical paper or via a bar-coded return format

Online

A return may be filed electronically after DSC authentication

A return may also be filed by data transmission, followed by verification via ITR-V

In the first case, acknowledgement is sent to the registered email ID, and the form may be downloaded via the official income tax web-portal. Once you have logged in online, copies must be taken of the form, it must be filled and signed and then sent to the CPC office in Bangalore before 120 days after filing. Since the ITR-2 is annexure-less, you do not have to attach any supporting documents.

Major Changes in Income tax India e-filing

1. Since ITR-1 does not apply to RNORs/NRIs, they must file ITR-2

  1. Clearer definition for who must apply or file ITR-2
  2. Residential status has been divided into Status for Individuals and Status for HUFs
  3. For individuals, it is further subdivided into Resident, not ordinarily resident and non-resident
  4. Furthermore, taxpayers also have to mention how long they stay in India
  5. NRIs must specify their TIN, while PIOs must mention the duration of their visit or stay in India
  6. Representative assesses must mention their capacity from the drop-down menu
  7. Individuals must clarify whether they hold Directorship in any company and also of their shareholdings
  8. Individuals must also provide information regarding their equities and shares
  9. Under the salary status, they must provide details regarding salary, the value of it, profits made and also gross salary if there is multiple employments or sources of income
  10. Senior citizens can now make use of the deduction as per Section 80TTB
  11. Donations have been split into various sections, as per the mode of payment and nature of the donation.
  12. Schedules AMT and AMTC have been newly introduced for computing alternate minimum tax
  13. Schedule EI will contain information regarding the nature of agricultural land, whether it is rented, leased or owned and also the type of irrigation used.

Filing Form ITR-2

  • In case of inapplicable schedules, strike across it and write -NA-
  • Do the same for sections or items as well
  • Indicate 0 with Nil
  • Always remember to put a – sign before negative figures
  • Round off to the nearest rupee for all decimal figures
  • In case of total income, round off to the nearest multiple of 10
  • Make sure you check the right category under Individual, such as Government, Private or PSU
  • Fill out in the following sequence: A>>Schedules>>B-1>>B-2>>Verify
  • It must be filed before 31st August in case you do not require an audit

 

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