ITR-2 Form: Understanding Income Tax Form 2

Last Updated at: January 07, 2020

Every year, scores of Indian file income tax online. Although it is quite an easy process to fill IT returns online, it becomes quite complicated for an individual if he or she is new to the system.

The first being the question: Which IT return form should I fill. In this article, we are going to discuss the ITR- 2 form and its salient features, who it applies to and how it needs to be filled.

ITR-2 Eligibility

The ITR-2 is to be filled by individuals and HUFs with no income from a profession or business. Every year, the form needs to be filled and submitted, with tax returns, on or before the 31st of July.

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Eligibility Criteria:
Any individual or HUF whose total income in the current assessment year comprises:
1. Salary or pension;
2. House property;
3. Capital gains, both short and long term;
4. Foreign assets;
5. Other sources, including winnings in lotteries, and other legal gambling methods.

The individuals or HUF with income from the following sources are not eligible to fill ITR -2:
1. Partial or total income from a business or profession (both individual and HUF)
2. Individuals who are partners in a partnership business and thus earn an income from it
3. Persons who are eligible to fill ITR -1
4. Those claiming double taxation relief under Section 90/90A/91


ITR- 2 is divided into several parts. The table below gives a detailed account of the parts and their significance.

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Filling up ITR-2

There are certain points to be taken care of while filling ITR-2:
1. Any particulars that are not applicable to your needs to be signified as N/A, instead of leaving it blank.
2. All calculations should be accompanied by a negative ‘-’ sign wherever applicable.
3. All amounts should be rounded off to the nearest rupee, except for those indicating profits and loss and income tax amount payable for the particular year.
4. Please tick the appropriate boxes wherever appropriate, if you are working in central government/PSU or state government.
5. Follow the below-mentioned sequence to fill out the ITR- 2 form, to make the process simpler and easier:
a. Fill Part A first
b. Follow it up wit hteh schedules
c. Then fill the Part – B – T1 and B-TT1
d. Verify the details thoroughly

Decoding ITR-1

There are several codes in Schedule SI of the ITR- 2 form. The table below gives a detailed account of the codes and what do they specify.

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Filling up of ITR- 2 can be complicated, in case you are new to the process and have several inputs to include. Consult an expert to make the process streamlined and simple.

    A lawyer with 14 years' experience, Vikram has worked with several well-known corporate law firms before joining Vakilsearch.