ITR-2 is the income tax return form for people having taxable income from salaries, investments, House Property and capital Gain etc. These investments could be in form of bonds, shares, gold or property. The profit arrived from these investments are known as capital gains. An assessee is required to file ITR-2 for declaring his capital gain. Read below to understand the process of filing return form ITR2 online
Part A – General
In this tab, you are required to provide your personal details.
· All the mandatory columns are highlighted in red and you should fill them.
· Make sure you enter correct PAN details
· You should provide your Adhaar number in case you have.
Part B -TI
This tab comprises of the summary of all income and taxes. You are not required to fill this tab. All the cells would be filled automatically as and when you provide the details in all the other tabs.
Part B – TTI
People who require tax relief based on double taxation on their foreign income could feed data in section 7A.
In section 14, you need to provide the details about your bank accounts. Section 15 need to fed by taxpayers having income from abroad. In the verification section, you need to fill your details.
IT – Tab
In case you have paid any self-assessment tax, you need to use this Tab. This tab has all the details of tax already paid apart from TDS.
Here in this, the first part you need to fill the TDS details with respect to salaries using Form 16. The second part is for the taxpayers who have received commission, interest, or payment by third parties and are subject to TDS. You need to fill the TDS details using form 16A.
The last part of this Tab is for taxpayers who in the previous year have sold their property.
In this tab you are required to provide basic information with respect to your employer. Also, you need to give all the details about your taxable salary.
You could also provide the value of tax exemptions which are available to salaried people. The exemption includes travel concessions, HRA, medical expense, and others allowances. You can fill this Tab with the help of form 16.
Schedule House property
This tab is for those who have income from house property. You need to provide basic details of your tenant. Your rental income should not be lesser than the market value. If you have any home loan, you could key in the interest value in this Tab.
Tab – Capital Gains-ITR2
In this Tab you need to provide information related to your investments. This Tab is divided in two parts.
Filling up information about Short Term Capital gains in ITR2
If you have sold shares, properties or units of mutual fund before the specified time, it is known as short term capital gains.
The sub-section 1 is for providing the details of the property transaction. In case you have not sold any property within a period of 3 years of its purchase, you need to skip it. You need to provide the actual value of the property sold and also the stamp value of the property sold. In the third column (aiii), you have to fill the greater value of above 2. And in the below section you need to enter the cost incurred in connection with the said property.
The column d is for claiming the deduction for agriculture land.
The next subsection is for investments in equity. You need to provide details like sale consideration, purchase cost etc. The column d is for loss incurred on shares or units of mutual fund due to corporate action.
Section 3 and 4 are similar sections for ‘non-resident’.
Section 5 is for other investment that is not property or equity/ equity MF. In this section you could provide details about short term capital gains derived from sale of debt mutual fund, bond, gold and gold ETF.
Section 6 is for reporting of money put into the capital gains account. Property buyer could save capital gains tax by purchasing other property or investing it in the capital gains account.
Section 7 in ITR2 form is similar section for non-residents.
Filling up Long Term Capital Gains in Return form ITR2
The long-term gains part is similar to short term capital gains except it considers indexing for some of the investments.
Section 1 is for the reporting of long-term capital gains on property. In case you have sold any property after three years from its purchase, you are required to fill this section.
You need to provide the actual value of the property sold and also the stamp value of the property sold. In the third column (aiii), you have to fill the greater value of above 2. And in the below section you need to enter the cost incurred in connection with the said property. Here, you can inflate the cost price using indexation.
The cost of improvement of the property is also provided with the indexation. You should provide the transaction cost such as stamp duty, brokerage, etc. as well for reducing your tax.
The next sub-section D has several columns for available deductions on capital gains of property. These deductions under section 54, 54B, 54EC, 54F, 54GB are related with the usage of capital gains.
The next section 2 comprises of the capital gains details derived from bonds or debenture.
The capital gains derived from the sale of the bond are eligible for some deductions. Section 54EC and section 54F are applicable to bonds.
Section 3 is applicable for listed bonds and debt mutual funds which are sold before July 1, 2014. Yet, the deductions are available under section 54EC and 54F.
Section 4, 5 and 6 are for non-residents.
Section 7 is a crucial section. Here you need to provide the details of investments that do not fall under section 1, 2 and 3.It includes gold, and debt mutual funds.
Section 8 is to report amount kept in capital gains account. This section is self-explanatory.
Section 9 is for non-residents.
There are some supplementary parts in this section.
· In part ‘D’ you need to provide the details of the deduction claimed against capital gains related to property.
· In part E you need to provide the details for carried forward capital loss. This section takes the value from the Tab CFL. You are not required to bother about this part.
· In part F you need to fill the aggregate value of the capital gain or loss. You need to use the schedule BFLA for filling this part. There are instructions provided with every column.
Tab – OS in Return form ITR2
This Tab provides the space for entering the details of other income. The other income can include dividends, interest, rental incomes, and lottery. Income from other sources which include race horses could also be added in this Tab.
The subsequent CYLA and BFLA Tab contain values which are prefilled.
In schedule CFL, you are required to fill details with respect to carry forward of losses. This tab is divided into 3 categories, House property loss, short term loss and long term capital loss. You need to fill the values for each year of carried forward loss. You could carry forward the capital loss up to a maximum of 7 years. In case you fill this Tab, you need to click the ‘Compute Set Off’ button.
Tab – VIA in Return form ITR2
Here, in this Tab you need to provide the details of deduction with respect to chapter VIA. This section has a long list of deductions with respect to various tax benefits instruments. For instance you can feed 80C insurance premium paid, 80D for mediclaim, 80E for interest on educational loans, etc.
Tab – 80G in return form ITR2
Here, this section takes into account the donation done by you. You need to give proper care while filling details of the donation in respective sections. Different donations offer different kind of tax benefits.
Here, in this Tab, you are required to provide income details with respect to your dependent spouse and your minor children. The total incomes of your dependent family members are clubbed with your income.
Tab SI in Return form ITR2
Here, in this Tab, there are columns provided for filling the income which has relaxation in the tax rates.
Tab EI in Return form ITR2
Here, in this Tab you need to report your exempt income if any. Here, the exempt income comprises of dividend received from any listed equity and any equity mutual funds, agriculture income, tax free interest income and other exempt income like EPF, PPF maturity amount, gratuity.
Here, in this Tab, you need to provide the details with respect to income accruing or arising outside of India
Here, in this Tab, you need to provide the details with respect to tax paid outside of India.
Here, the Tab is specifically for the people governed by the Portuguese civil code. Generally it is applicable to some of the people of Goa.
Here, in this Tab, you need to provide the details with respect of foreign assets held.
After filing of return, did you detect any discrepancies and want to revise the return? Click here to know the process