ITR-2A Form

ITR-2A Form

ITR-2A is a freshly included income tax return form proposed for the people and HUFs (Hindu Undivided Family). This is for those who have salary income and more than one house property, and do not own income from property gains. If you are a salaried or a part of a Hindu United Family with control of more than one private property and don’t have any earnings from capital gains, you will be expected to fill the ITR 2A Form to register for your income tax returns. Income tax forms are reports that require to be filled and presented when one files for taxes.

Benefits of Filing ITR

Filing ITR not only stops you tax-compliant but also gives the following benefits:

Valid from the financial year 2017-2018, the IT department levies a fine of Rs 10,000 below section 234F on people who do not register their Filing Income Tax Return. Filing ITR on time evades avoidable penalties. Moreover, the fine has been fixed at Rs 1,000 if your yearly income is not higher than Rs 5 lakh. Further, as a law-abiding resident, you have to register your tax returns.

ITR receipt is a very important document

You need to save ITR slips carefully as they are very significant evidence of your income and payment of your taxes. It is much more detailed than Form 16. It contains your total income details and has details of your income from other sources.

ITR receipt is a useful document for hassle-free processing of bank loans

Most banks including NBFCs request ITR receipts of the advanced three years when you apply for high-value loans like car and home loans. Banks recognise ITR as the most official document verifying an individual’s benefits. Therefore, you should automatically file an income tax statement or return if you are intending to avail car or housing loans in the future.

Visa processing

Departments of advanced countries like Canada, the United States, Australia, and the United Kingdom ask for ITR vouchers statements of the past years to prepare your visa application. They are very careful regarding your tax compliance and therefore, you are required to provide past ITR reports. This encourages them to evaluate your income and assure that you can take care of the expenses on your trip.

Compensate losses in the next financial year

People cannot carry forward the disadvantages of the present year to the next year until an ITR is finished. According to the income tax law, individuals are not allowed to carry forward losses and set them off on future year's earnings if the ITR is not listed within the expected date. Hence, it is important to file your income tax return on time to claim the losses in future years.

Checklist for ITR-2A

Eligibility criteria to file ITR-2A Form

Assesses who are qualified to file using the ITR-2A Form are:

• This form is suitable for those who hold salary income and have more than one house property and do not have any capital gains.
• Those who hold long-term capital profits from purchases on which Securities Transaction Tax is given (which are excluded) from tax can still utilise this form.
• NRIs can register ITR-2A, if suitable, however, citizens who have a foreign property or asset or foreign benefits cannot file this form

People who cannot register on ITR-2A

This income tax return ITR -2A cannot be finished by those who possess:

• Revenue from capital gains
• Income from business or employment
• Any part of relief or reduction below section 90, 90A or 91
• Any citizen owning any asset (including financial investment in any entity) placed outside India or contracting authority in any statement found outside India
• Any citizen holding income from any source outside India.

Structure of ITR-2A Form

ITR-2A is subdivided into two parts and with different schedules:

• Part-A: Common data requiring identificatory and additional data
• Part-B-TI: Calculation of the entire income
• Part B-TTI: Estimation of tax liability on the complete income
• Tax Returns: Declaration of payment of tax on self-assessment and advance-tax, TDS on payrolls and TDS on non-salary wages.
• Schedule-S: Calculation of income below the head payrolls or salaries.
• Schedule-HP: Calculation of income below the head Income from House Property.
• Schedule-OS: Estimation of income supporting the head Income from other causes.
• Schedule-CYLA: Description of interest after set-off for current year’s losses
• Schedule-BFLA: Report of income after set off of unabsorbed loss carried forward from previous years.
• Schedule- CFL: Declaration of losses to be brought ahead to upcoming years.
• Schedule-VIA: Description of results (from total profit) below Chapter VIA.
• Schedule 80G: Assurance of contributions allowed for a deduction under Section 80G.
• Schedule SPI: Description of income starting to spouse/ secondary child or son’s wife or any other individual or organisation of persons to be involved in the interest of the assessee in Schedules-HP, OS and CG.
• Schedule-SI: Declaration of assets which is liable to tax at specific rates
• Schedule-EI: Report of income not covered in total revenue
• Schedule-5A: Declaration of apportionment of assets among spouses directed by Portuguese Civil Code.

Filing ITR-2A Form

ITR-2A can be registered both online and paper. It is mandatory to e-file income tax return when:

• your total income exceeds Rs.5 lakhs
• you are asking a refund
• you have international assets and assets (including business interest in an entity)
• you are asking DTAA relief

Documents required for ITR -2A

• Form 16: It is a TDS certificate allotted to you by your company to give details of the payroll paid to you and TDS taken on it if any.
• Interest certificate from the post office and bank.
• Form-16B/Form-16A/Form-16C
• Form 26AS: It is your combined annual tax report. It is like your tax passbook which has notice of all the taxes that have been placed upon your PAN. It comprises:
  • a. TDS deducted by banks
  • b. Advance taxes are transferred by you during the financial year.
  • c. TDS deducted by your firm.
  • d. Self-assessment taxes paid by you.
  • e. TDS is deducted by any other companies from payments given to you.
• Tax-saving advance proofs
  • a. Documentary evidence to claim deductions under section 80D to 80U
  • b. Home loan report from bank or NBFC
  • c. Pre-validation of bank statement for ECS payment
• Capital gains
• Aadhaar card
• Get details of investment in confidential shares
• Get bank account details
• Update post office and bank savings account passbook, PPF account passbook
• Salary slips

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