Guide to E-file ITR 2 when you have sold house property, land or building?

What is ITR 2?

ITR-2 is an income tax return form used in India by certain individuals and Hindu Undivided Families (HUFs) to file their taxes. It's specifically designed for those who don't have income from business or professional activities.

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Who can file ITR 2?

Individuals and HUFs having income from any source except “Profits and Gains from Business or Profession” can file their ITRs using ITR 2 form. Here is the list of taxpayers who are eligible to use ITR 2.

Individuals & HUFs having income from the following sources

1. Income from Salary/Pension
2. Income from House Property(Income Can be from more than one house property)
3. Income from Capital Gains/loss on sale of investments/property (Both Short Term and Long Term)
4. Income from Other Sources (including winning from the Lottery, bets on Race Horse Races, and other legal means of gambling)
5. Foreign Assets/Foreign Income
6. Agricultural Income of more than Rs 5000

Taxpayers who are resident not ordinarily resident (RNOR) and Non-residents (NR)

Director of any company registered in India

An individual who is invested in unlisted equity shares of a company

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How to e-file ITR 2 Form for AY 2024-25?

Before FY 2020-21, taxpayers were required to file ITR-2 using the offline utilities ( upload XML online). However, with the launch of the new income tax portal, the income tax department has enabled online filing of ITR 2 from FY 2020-21 onwards.

You can also file your Income Tax Return with Tax2win, an AI-powered portal that automates the e-filing process. It can automatically select the correct ITR form for you, extract and pre-fill data from Form 16 and AIS, and simplify the overall e-filing experience. File your ITR now, or hire an online CA if you need assistance with e-filing your Income Tax Return.

Here’s the step-by-step process to e-file ITR 2 for FY 2023-24.

1. Visit the new income tax portal.
2. Login using your username (Your PAN) & password
   
   
3. On the dashboard, click on e-File > Income Tax Returns > File Income Tax Return
   
   
4. Select Assessment Year (AY) as AY 2024-25 & click 'Continue'
   
   
5. Select the online filing mode and click on Proceed
   
   
   
   Please note that if you have already filled the ITR form, click on ‘Resume Filing.’ If in case you want to start afresh, you should click on 'Start New Filing'
   
   
6. Select the status among Individual, HUF, & others accordingly and click on 'Continue'
   
   
7. Then, choose 1 option from the options below to fill the correct ITR form. In this case, select ITR 2 and then click on 'Proceed with ITR 2'
   
   

   Please note:

   1. If you're not sure whether ITR or schedules apply to you or what your income and deductions are, your answers to the questions will help you figure it out and help you file your ITR correctly
   2. You can skip these questions if you know your ITR or schedules and income & deduction details.
8. Carefully note the list of documents required and click on 'Let's get started’ to start filing ITR 2
   
   
9. Select the options applicable to you and click on 'Continue'
   
   
10. Check your pre-filled details and make the necessary changes. Then, fill in the blanks with the remaining/additional info (if required). At the end of each section, click on ‘Confirm’.
11. Fill out the various sections with income and deduction information. Then, click ‘Proceed’ after you've completed and confirmed all the sections of the form.
12. On the next page, select and fill in the schedules applicable to you and click on ‘Confirm’ at the end of every schedule
    
    
13. After filling in all the details and paying the tax liability (if any), click 'Preview Return.'
14. Then, you will be taken to the ‘Preview and Submit Your Return page.’ On this page, enter the place, select the declaration checkbox, and click ‘Proceed to Validation.’
    
    
15. You will be directed to the ‘Complete your verification’ page. Select any preferred verification option and click on 'Continue'
    
    
    
    Please note that e-verification is the easiest & quickest option to complete your ITR filing process.
16. A success message will appear after you e-Verify your return, along with the Transaction ID and Acknowledgment Number. A confirmation message will also be sent to the mobile number and email address provided on the e-filing portal.
    
    

Now you know how to file ITR-2 when you have sold house property, land, or buildings. If you still need assistance, our team of experts is here to help you understand taxes while e-filing your Income Tax Return and maximizing your tax refund. Book an eCA now!

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